SIGNATURE POLICIES for MORETON
Housing & Homeless Emergency
Thirty years of neoliberal policies have lead us to the national emergency that we are currently facing. I never thought I would grow up to live in a country where so many people are sleeping rough on the streets, in their cars, in tents, in parks, couch surfing or in insecure accommodation. The number of homeless Australians is growing at an alarming rate.
A whole generation of young Australians are locked out of the housing market, even those working professionally full-time on two incomes. Couples who have worked hard and saved have to compete with investors, heavily subsidised with tax incentives from the taxpayer.
To fully address this problem, we have to confront the reality that three decades of neoliberal policies on housing have failed. Having a secure place to call home is the birthright of every Australian Citizen.
It is no longer a crisis, it is a National Emergency. The number of summits, talk-fests and ‘roundtables’ of politicians and industry heavyweights over the last few years is not addressing the task quickly enough.
My proposed approach would be a staged one.
1
Mobilise efforts to provide Emergency Shelter for the homeless
This needs to be an all-in effort to provide safe and secure temporary emergency accommodation to all those that are sleeping rough on our streets and parks, or in insecure accommodation. This will require an emergency mobilisation of funding to Councils, the Army Reserves, Community Housing providers, welfare groups and significant tax incentives to mobilise the private sector. Solutions may include temporary modular accommodation units (similar to mining camps) or temporary tent encampments.
Many homeless have serious mental health issues as well as drug & alcohol issues. Funding will need to be available to provide policing for security and support services to address these issues.
2
Stabilise Demand
Since 2022 Australia has grown the population by over one million but only built 200,000 houses. The ability of the Australian housing sector to build more homes is also hampered by waves of bankruptcies of house builders, supply chain shortages of materials, competition with the State Government ‘Big Build’ projects with BPIC conditions – leading to a chronic shortage of skilled trades.
Until we have a handle on this problem, Australia should signficantly reduce its migratory intake in the short-term and focus on importing skilled tradies that can actually be mobilised to build housing (carpenters, bricklayers, roofers, tilers, plumbers etc.) like we did in the post-war period, whilst maintaining our humanitarian intake program.
There should also be a temporary ban on foreign nationals or temporary VISA holders from purchasing Australian residential housing stock. There is no doubt Australia has the potential and capacity to provide larger intakes, but not in the middle of a national housing emergency.
3
Incentivise Homeowners to Increase the Supply of Afforable Rental Accommodation
The simple reality is, given the issues in the market with builders entering bankruptcy, skills shortages and complications with planning approvals it will take years to noticably accelerate the pace of housing construction.
In the meantime, the most democratic way to rapidly increase the availability of affordable rental accommodation in the existing urban footprint is to provide homeowners tax incentives to rent out spare rooms or, for those with yard big enough, to build ‘granny flats’ (or secondary dwellings).
Provided this accommodation is available at an ‘affordable’ rate (defined as a percentage of an average award wage/salary), the homeowner should be entitled receive this income ‘untaxed’, which will also help the majority of mortgagees that are experiencing acute mortgage stress with rising interest rates.
4
Postal Bank to fund National Housing Authority to Coordinate with the States
Establish a National Housing Authority to recommend necessary assistance to housing authorities (and Community Housing Providers, CHP’s) in each state, including assistance on finance, building materials and labour.
The public Postal Bank will provide loans to state housing authorities, at the recommendation of the National Housing Authority to develop rental properties that charge only economic rents rather than market rates
5
Reforms to Negative Gearing and Capital Gains Tax (CGT) Concessions at the lower end of the market
Abolish negative gearing and half CGT concessions (from 50% to 25%) for properties under a certain price (the ‘threshold’) to reduce price pressures and discourage speculation at the lower end of the market. Subject to ongoing consultation and review with local authorities on a regular basis.