Treasurer Scott Morrison will push the states to make buying a new home more attainable, conceding that the great Australian dream is “increasing unaffordable”.
Mr Morrison will outline how housing affordability will be an important focus for the federal government in this term of parliament when he addresses an Urban Development Institute lunch in Sydney on Monday.
“While the majority of Australians live in a home that is either owned or being purchased by their household, for each new generation this aspiration is proving more and more difficult to realise,” he will say.
Warning the key to addressing housing affordability is not to crash the housing market, Mr Morrison is set to foreshadow discussions with state treasurers at a meeting in December.
“State governments cannot do much about the physical geography occupied by our cities, (but) they could do a great deal to improve planning processes and the provision of infrastructure,” he says.
Mr Morrison will flag more incentives for state governments to reform planning laws and release more land.
Arguing housing affordability isn’t just an issue for home buyers, the treasurer will warn it’s also putting more pressure on the private rental market and ultimately social housing.
The challenge of not being able to find a secure and affordable home has other flow-on effects, impacting health, education outcomes and workforce participation.
Mr Morrison will again call out Labor’s proposal to abolish negative gearing on existing properties, describing it as ill-conceived .
“Labor sought to demonise property investors, portraying negative gearing as a concession for the rich, rather than the reality of being a long established tax principle predominantly used by mum and dad wage earning investors.”