INNOVATIVE FINANCING MODELS CAN HELP EASE TURNBULL GOVERNMENT’S HOUSING AFFORDABILITY CRISIS

5 Dec 2016

Labor welcomes the report of the Council on Federal Financial Relations (CFFR) Affordable Housing Working Group which has examined financing models to increase the supply of affordable rental housing.

INNOVATIVE FINANCING MODELS CAN HELP EASE TURNBULL GOVERNMENT’S HOUSING AFFORDABILITY CRISIS

Labor welcomes the report of the Council on Federal Financial Relations (CFFR) Affordable Housing Working Group which has examined financing models to increase the supply of affordable rental housing.

The report is a valuable step towards the development of a financing model that may overcome problems of yield and scale in substantially increasing the stock of affordable rental housing.

The report’s preferred ‘bond aggregator model’ has wide support among Community Housing Providers, financial institutions and superannuation funds consulted by the Working Group.

“From discussions I have had with Community Housing Providers (CHPs), superannuation and property industry stakeholders in recent months, the establishment of a bond aggregator model for financing large scale additions to the stock of affordable rental housing has been high on their priority list,” Labor’s Shadow Minister for Housing and Homelessness, Senator Doug Cameron said.

An expert group is to finalise details of the design of the housing bond to be issued, the establishment of the bond aggregator and a proof of concept for a bond aggregator model by mid-2017.

Labor will carefully consider the model that emerges in the middle of next year and in the meantime will consult widely with CHPs, housing and finance industry stakeholders over the final shape of the model that should emerge.

The Turnbull Government should give its full attention and support to the work done by the CFFR Affordable Housing Working Group rather than playing politics with housing policy, as it has with negative gearing and capital gains tax reforms.

To deal with the housing affordability crisis, the Commonwealth government needs to be active and engaged in policy that produces sustained growth in affordable rental stock. The Turnbull Government so far has failed that test. This report gives the government a path toward rectifying that failure.

MONDAY, 5 DECEMBER 2016