Today, Australian home values are worth about seven times the average salary. In Melbourne, it’s eight times.
The authors point to the obviously harmful impact of the capital gains concessions on investment property, which has inflated demand for housing while encouraging property to be viewed as a speculative vehicle for wealth accumulation rather than a fundamental need.
Meanwhile, rising home values have pushed more people into private rental accommodation, where tenant rights have not kept pace. Meanwhile, those on low incomes, squeezed out of private rentals, have encountered an overburdened and inadequate public housing system. We are now at a crunch point, the authors argue, where in addition to the obvious inequality of Australia’s housing system, the manifest failure to ensure a path to home ownership will put increasing stress on the national budget as households that do not own their home require higher support payments in retirement to cover housing costs.“There is no responsible ‘business as usual’ option,” Hal Pawson told a Committee for Sydney event this week to launch the book. “A national housing strategy is long overdue and can only be led by the Commonwealth. It must be national because ... it’s plain that key instruments of housing policy, especially tax and social security settings, are controlled by the Commonwealth and not the states.”First, it would be overseen by a dedicated housing minister at cabinet level. Federally, Michael Sukkar is Australia’s current housing minister, but he’s not in cabinet and he juggles the role with the not insignificant responsibilities of being Assistant Treasurer. Second, we need a dedicated national agency responsible for overseeing housing policy, such as the US Federal Housing and Urban Development department. To his credit, Prime Minister Scott Morrison promised at the last election to beef up the existing National Housing Finance and Investment Corporation with more research powers to the tune of $5 million a year, adding to its existing twin responsibilities to both oversee Morrison’s election announcement of a first home loan guarantee scheme and his announcement as Treasurer in the 2017 budget of funding to help the community housing sector gain access to cheap credit.This rebuilding of an institutional capacity at the national level to deal with housing issues is an important first step. But there are plenty of others too. Reform of tax breaks on housing, most pressingly on investment housing, must be on the table, the authors argue. As must a switch in the tax base of state governments from stamp duty to a land tax. Targets must also be set to ensure new developments include affordable rental housing in well located areas to house key workers.And those pushed into the public housing system by increasing demand in the private rental market need quality housing that does not compound the disadvantage they already face. In short, Australians deserve a national strategy to ensure access to stable and affordable housing – not just the politicians’ latest trick.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Paedophile used chat groups on day he was released despite internet ban, court hearsA South Australian paedophile used the internet on the day he was released from jail and had sexualised communications with a child, a court hears.
Read more »
What if alcohol flowed out of your taps? It's not as great as it soundsResidents in an Indian apartment block were shocked when a mixture of beer and rum flowed from their kitchen taps. It will take at least a month to fix their water supply.
Read more »
'Our ratbag' Julian Assange suffers from psychological torture, say two Australian MPsTwo Australian MPs say a visit to the jail cell of Julian Assange confirms their fears that the Wikileaks founder has suffered from psychological torture | BevanShields
Read more »
'Leave our bloke alone': Australian MPs call for government to support WikiLeaks founder Julian AssangeThe Australian government and British Prime Minister Boris Johnson are being urged to stop Wikileaks Founder Julian Assange's impending US extradition trial.
Read more »
'Big embarrassment' for Malaysian govt following Tony Abbott's reveal | Sky News AustraliaSenior journalist at The Australian Ean Higgins says it’s “very significant” for former prime minister Tony Abbott to reveal MH370 was a case of mass murder-suicide by the pilot.\n\nMr Higgins told Sky News “it’s quite clear from what Mr Abbott tells us that right from the start the Malaysians had concluded this is exactly what had happened”.\n\n“This is a big embarrassment for the Malaysia government,” he said.\n\n“It’s not the conclusion they would like to have out there publicly.”\n\nSky News investigates the mysterious disappearance of MH370 and reveals ground-breaking new details in a two-part documentary 'MH370: The Untold Story'. \n\nWatch or stream on Foxtel at 8pm AEDT on Wednesday and Thursday, February 19 and 20.\n\nImage: AP
Read more »
The great Australian betrayal (we used to call it the dream)Decades of systematic policy failure have left too many Australians with no hope of owning their own home, writes Jess Irvine
Read more »