A plan to increase housing supply to tackle Australia’s affordability crisis will be developed within the next six months.
Prime Minister Anthony Albanese announced the measure on Friday, following a meeting of national cabinet in Brisbane.
He said the nation’s planning ministers will develop proposed reforms to increase housing supply within six months as part of a national plan to manage growth in cities and towns.
The ministers will work with the Australian Local Government Association.
Later this year, housing ministers will come up with a plan to strengthen renters’ rights nation-wide.
The federal government will offer incentives to increase the supply of housing by increasing the depreciation rate from 2.5 per cent to four per cent per year for eligible new build-to-rent projects where construction commences after May 9.
As well, the government will reduce the withholding tax rate for eligible fund payments from managed investment trusts to foreign residents on income from newly constructed residential build-to-rent properties after July 1, 2024, from 30 to 15 per cent.
It will also increase the capacity of the Affordable Housing Bond Aggregator, by expanding the liability cap by $2 billion.
Mr Albanese said an overhaul of Australia’s migration system would ensure the states and territories have a greater role and that immigration is meeting the needs of communities.
The prime minister said the government was undertaking an independent review of its infrastructure investment program.
The review has the backing of the states and territories.
– AAP
