The Property Council has today welcomed calls from the crossbench, led by Allegra Spender MP, to bring forward housing incentive payments to support the supply of new homes, which is consistent with research commissioned by the Property Council earlier this year.
The Property Council has called for the New Homes Bonus, a $3 billion program rewarding states and territories that exceed their housing targets, to be doubled, with payments brought forward alongside improving its implementation. That increase would be just 0.1 per cent of the Australian Government's 2024/25 Budget.
The Australian Capital Territory is the only jurisdiction projected to meet its housing target and claim a share of the incentive, although this remains uncertain.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said doubling the New Homes Bonus scheme can give a shot in the arm to our ambitious housing target with only a minimal cost to the government's Budget.
"We need to ramp up supply-side initiatives to accelerate home construction.
"We've warmly welcomed the government's New Home Bonus initiative, but the payment gateways need to be pulled forward, and states should be rewarded for taking genuine and ambitious actions to lift their housing run rates, even if they don't quite hit their 2029 target.
"The payoff is significant. If we achieve our national housing goals, renters could save around $90 a week, easing pressure on household budgets. That kind of relief matters, especially when rental stress is at record highs.
"Supply is the main game in making housing more affordable, whether to buy or to rent. Sharpening the well-intentioned housing incentives will go a long way in tackling our housing crisis."
The Property Council has been 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 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.
