Coalition pledges $5 billion to build infrastructure for new homes

ABC NEWS (Australia)

The Business Council of Australia has put forward its plan to fix Australia's housing crisis claiming the Albanese government is 64,000 homes behind per year - on its target.

Transcript

00:00We have this target to build 1.2 million homes by the end of the decade.

00:06The Albanese government's put that forward and actually the Business Council of Australia

00:10backs that target, but they say we're moving too slowly and to reach that 1.2 million figure

00:17we need to be building about 64,000 extra homes per year between now and the end of

00:23the decade.

00:24They've put forward this proposal for a $10 billion fund, basically which would see states

00:30and territories incentivised for smoothing out planning and regulation issues that are

00:37stopping the construction of houses.

00:40Part of this $10 billion would go towards more money for apprenticeships to get those

00:46skills needed to get more houses built.

00:49Also a fast tracking of permanent residency applications for people from overseas who

00:55have the skills needed to build houses more quickly.

00:59And critically in this plan from the Business Council of Australia, a proposal to move away

01:06from stamp duty towards an ongoing land tax.

01:11We know that there are many state governments that are somewhat addicted to the revenue

01:16of stamp duty.

01:18That's that large upfront payment that we make when we buy property.

01:22There's a proposal to move away from that.

01:26And Bran Black from the Property Council of Australia has explained why the organisation

01:32thinks that's a good idea.

01:33It's largely around downsizing people or empty nesters.

01:37Here's what Bran Black had to say.

01:39You think about it from the perspective of somebody who's perhaps young and looking to

01:44move into state and buy a home.

01:45They might be disincentivised from doing that, from freeing up a larger family home because

01:50of that large upfront cost.

01:51So any step that we can take towards abolishing stamp duty is going to be a good step.

01:57This all really kicked off about a week ago when we learnt that the Prime Minister, Anthony

02:01Albanese, is looking to settle on this $4.3 million home in New South Wales on the Central

02:08Coast.

02:09Then we saw some analysis released from the Greens about the impact of negative gearing

02:14and capital gains tax discounts.

02:17They said that if Labor's old policies were in place, about 700,000 renters could become

02:23home owners.

02:24The Labor Party was quick to sort of quell that idea and say that it's actually not on

02:30their agenda.

02:31And then over the weekend, we saw a pretty major housing policy announcement from the

02:35Coalition.

02:36A plan to set up a $5 billion fund to get things like power, access roads and sewerage

02:44to Greenfields developments.

02:47Basically getting that money into the hands of councils and property developers to increase

02:53the supply of housing.

02:55We saw a response to that policy yesterday on the Insiders program from a government

03:00minister, Murray Watt, saying that basically it's a disingenuous policy and actually the

03:05Albanese government would be spending overall more money on housing than the Coalition.

03:11And then we've seen a response to that response.

03:14This morning from Shadow Housing Minister, Michael Suka, here's what he had to say.

03:19Their $500 million, not 1.5, their $500 million program at the moment, the first round of

03:24it has been funding bureaucrats.

03:27It's been funding increasing the number of planners in local councils, been funding planning

03:33and scoping studies and feasibility studies.

03:36That's not infrastructure.

03:37So if they want to claim that's infrastructure, they're entitled to.

03:40Our fund will be limited to pipes, to bitumen, to concrete, the things that actually get

03:46houses moving.

03:48Shadow Housing Minister from the opposition, Michael Suka, basically saying that the Coalition's

03:55policy when it comes to this critical infrastructure is better than the Albanese government's.

03:59Look, lots of mud being slung either side between both the major parties.

04:05The Greens also getting involved.

04:06What's clear is that housing is shaping as a key issue and the federal election's not

04:10too far away.

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