The government has set a target of 1.2 million new homes to be built across the country by 2029. The states and territories have been offered $3 billion in bonus payments to hit their respective targets plus a share of $500 million to deliver basic amenities and planning for new housing.
It is part of a broad range of housing initiatives being put in place to help deal with surging population growth,the tightest rental market in more than 30 years and falling affordability in all capital cities.
Property Council chief executive Mike Zorbas said the May budget was a chance to offer incentives to boost housing supply that no state or territory could ignore.
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He said with all governments bar Tasmania held by Labor,this might be the last chance for a concerted change in approach that would boost housing supply to appropriate levels.
“History tells us housing supply repeatedly gets shoved in the too-hard basket when politics intervenes. We need to break that cycle by offering the states a carrot no premier from any party can ignore,” Zorbas said.
“Over the forward estimates where trillions are divvied up across the economy,a pool of $3.5 billion between eight states and territories to boost housing supply won’t survive changes in state politics.”