The Property Council of Australia has welcomed the Federal Government's consultation on possible reforms to the superannuation performance test, providing a pathway to unlock greater investment into Australian housing.
The consultation paper recognises that some long-term investments are poorly served by current benchmark settings and canvasses options that could give assets such as social and affordable housing a fairer treatment under the performance test.
Property Council Chief Executive Mike Zorbas said the changes send an important signal that housing, including social and affordable housing, is an investible asset class for superannuation funds.
"All new housing supply is welcome," Mr Zorbas said.
"At a time of historic state government deficits and overdue budget repair, we need to welcome patient investment dollars wherever we can find them.
"Project funding and patient institutional partnerships from overseas build about thirty per cent of our commercial, industrial and residential assets but are regularly repelled by daft state foreign investor surcharges.
"Almost as important as these partnerships and private sector support is appropriate access to domestic institutional funding.
"Super funds are long-term investors, and housing is a long-term asset that we need more of.
"Beyond social and affordable housing, we need to strongly encourage superannuation investment across the housing sector, from student accommodation through retirement living, to build to rent and land lease communities.
"These types of housing are a major part of the scale solution to Australia's affordability and supply challenges.
"Equally, without removing ASIC's distorting RG 97 stamp duty requirements - which force super funds to report taxes as transaction costs - these reforms cannot help us deliver the scale of housing supply Australia needs."
Recent findings from the National Housing Supply and Affordability Council's State of the Housing System 2026 report reinforced that Australia is tracking behind its housing targets, with supply struggling to keep pace with demand.
"Unlocking superannuation and private capital would be a welcome solution for a complex housing supply puzzle, but it's only one part of a broader set of supply and tax reforms needed to lift delivery," Mr Zorbas said.
The Property Council said it would work constructively with Government and Treasury on the design and implementation of the proposed reforms to ensure they maximise additional housing supply.
The focus now shifts to ensuring these settings support investment at scale across the housing system and deliver more homes on the ground.
