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Proposed amendments to BTR legislation could help deliver more than 105,000 homes to national supply, according to an industry body.
The Property Council of Australia has called on the Federal Parliament to accept amendments outlined in a joint response to the Senate economics legislation committee inquiry on the Treasury Laws Amendment (Build to Rent) Bill 2024.
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In June, the federal government announced new legislation designed to stimulate growth in the built-to-rent (BTR) sector, with a range of incentives to motivate investment and construction.
But the Property Council has now said there’s more juice to be squeezed from the orange, sharing modelling from accounting firm EY that showed the proposed amendments could add an extra 105,000 rental homes to the national pipeline over a 10-year period, at a cost of just $9.3 million to the federal government.
In a joint submission with the Community Housing Institute of Australia (CHIA) and low-income housing advocacy group National Shelter, the Property Council argued existing BTR legislation could be improved by revisiting tax settings and target requirements.
According to the submission, the “right tax settings” could encourage growth in BTR housing, while a target of 10 per cent affordable housing within existing and new BTR projects would ensure the benefits flow to “those who need it most”.
The joint submission calls on Parliament to:
- Revise the definition of affordable tenancies.
- Revise the managed investment trust (MIT) withholding tax rate concession to 10 per cent, to ensure a level playing field for domestic super funds.
- Require affordable tenancies be managed in partnership with registered, not-for-profit community housing organisations (CHOs).
- Extend the 10 per cent MIT withholding tax rate to existing BTR projects that meet other eligibility criteria.
- Commit to no use of “no cause” evictions.
- Increase current three-year lease term requirements to five-year lease terms.
Speaking at a press conference at Parliament House on Wednesday (14 August), Property Council CEO Mike Zorbas encouraged the Senate to green-light the amendments proposed in the submission.
“105,000 homes is double the number currently supplied by the Housing Australia Future Fund,” Zorbas said.
“Accepting this proposal will create a record setting housing contribution by a Federal Parliament. Every MP that backs this proposal is helping to house more Australians.”
With the National Housing Accord’s target set at 1.2 million homes by 2029, the Property Council isn’t the only industry body with housing on the mind.
On Tuesday (13 August), the managing director of the Housing Industry Association (HIA), Jocelyn Martin, said more must be done to encourage new homes in the private market.
“The majority of the government’s 1.2 million homes target will need to be homes for the private market. This is crucial to bring house prices and rentals down,” Martin said.
“All areas of housing need to be focused on and government policies cannot just focus on social housing and leave out free market housing, it is critical the balance is right if the government is to succeed in its long-term vision.
“HIA is calling for the newly appointed Minister for Housing, Clare O’Neil, to reset the housing agenda to address the shortfall of supply across the entire housing continuum.
“The more new homes we build the more social housing is freed up for those who really need it, and the more likely it is that ordinary Australians have a chance to buy a house at an affordable price.”
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