This call has again been backed in by key Independent MP Allegra Spender today
Jurisdictions that exceed their share of the 1.2 million new homes by 2029 goal can receive part of a $3 billion New Home Bonus fund, with payments starting after FY2029. Right now, the ACT is the only jurisdiction on track to hit its targets.
Federal Housing Minister Clare O'Neil and Shadow Housing Minister Michael Sukkar will debate at the National Press Club tomorrow.
Property Council Chief Executive Mike Zorbas said bringing forward payments and doubling the value of the scheme will help boost housing supply.
"Supplying more homes is the rock, paper and scissors of addressing the nation's housing crisis," Mr Zorbas said.
"As it stands, funds from the welcomed New Homes Bonus may well go unused. We need to recognise the urgency of this housing crisis.
"The Productivity Commission tells us we are now building half as many homes per hour worked as we were in 1995.
"That is why we are calling for a doubling of the accord bonus of $3 billion to states who are tracking to build their fair share of the 1.2 million homes target and for it to be brought forward to resource planning departments and local governments to help plug the housing deficit.
"Extending the scheme to allow for longer-term reforms and ringfencing any unspent funding for future state housing supply initiatives will also make sure the money is used wisely and not wasted," he said.
The Property Council welcomed the call from Independent Allegra Spender, and other members of the crossbench, to rework the current incentive model to better incentivise states to boost housing supply.
The Property Council is calling for the following changes to the New Homes Bonus scheme:
- Refine the scheme by bringing forward payments and extending its duration to seven years to enable jurisdictions to undertake longer-term reforms
- Increase the total value to $6 billion - representing just 0.1 per cent of the 2024/25 Federal Budget - to reflect the scale of the housing challenge and ringfence any unspent funding for future housing supply initiatives
- Strengthen transparency through clear public reporting on progress and establish forums to share insights between jurisdictions
- Enhance Australian Government leadership through establishing a Housing Sub-Committee of Cabinet and considering all available levers to support housing supply.
