ANU HOUSING SUPPLY REPORT HIGHLIGHTS TURNBULL GOVERNMENT FAILURE

20 Nov 2017

Today’s ANU report on housing has found that simply adding more supply will not address the housing affordability crisis, putting the lie to Malcolm Turnbull’s oft-repeated claim that increasing supply alone will solve the housing crisis.

CHRIS BOWEN MP

SHADOW TREASURER

MEMBER FOR MCMAHON

SENATOR THE HON DOUG CAMERON

SHADOW MINISTER FOR HOUSING AND HOMELESSNESS
SHADOW MINISTER FOR SKILLS, TAFE AND APPRENTICESHIPS

ANU HOUSING SUPPLY REPORT HIGHLIGHTS TURNBULL GOVERNMENT FAILURE

Today’s ANU report on housing has found that simply adding more supply will not address the housing affordability crisis, putting the lie to Malcolm Turnbull’s oft-repeated claim that increasing supply alone will solve the housing crisis.

The report also highlights the short-sighted decision by the Coalition to scrap the National Housing Supply Council (NHSC) and the National Rental Affordability Scheme (NRAS).

Scrapping the NHSC has meant the government is flying blind on housing policy, with no expert advice to guide its decisions.

It shows. They are manifestly failing to implement policies that deliver the right kind of housing to the people that need it.

The ANU report makes this particularly clear, with housing shortages showing up in more affordable areas, and gluts appearing in areas where prices are high.

With the world’s most generous negative gearing and capital gains tax concessions on offer, investors are piling in to areas and housing types that they hope will bring returns, severely distorting the housing market and failing to supply the housing needs of people on lower incomes.

The report shows that the Coalition’s tax policies haven’t worked. Its policies encouraging negative gearing, capital gains and the rapidly growing use of self-managed super funds for property investment are not delivering affordable housing where it is needed.

It also shows that the decision to cap NRAS has had detrimental consequences. Capping NRAS has meant that the Commonwealth is no longer contributing to delivering any increased supply in affordable housing.

Labor’s NRAS delivered over 38,000 affordable homes, and was on track to deliver thousands more before the Liberals made the ill-informed decision to end the scheme.

Labor has a comprehensive policy to address housing affordability and will have more to say before the next election.

MONDAY, 20 NOVEMBER 2017