Industry seeks faster implementation of $3bn scheme
The Property Council of Australia has expressed support for a proposal by crossbench MP Allegra Spender to accelerate housing incentive disbursements designed to expand residential development.
The council has advocated for the New Homes Bonus – a $3 billion initiative that provides financial rewards to states and territories surpassing their housing construction targets – to be expanded in scale, with faster distribution of funds. Such an expansion would represent merely 0.1% of the federal budget for 2024–25.
At present, only the Australian Capital Territory appears positioned to satisfy its housing objective and obtain a proportion of the incentive, though this outcome remains uncertain.
Supply-side needs
"We need to ramp up supply-side initiatives to accelerate home construction," said Matthew Kandelaars (pictured right), group executive, policy and advocacy at the Property Council. "We've warmly welcomed the government's New Home Bonus initiative, but the payment gateways need to be pulled forward, and states should be rewarded for taking genuine and ambitious actions to lift their housing run rates, even if they don't quite hit their 2029 target.
The payoff would be significant, said Kandelaars. "If we achieve our national housing goals, renters could save around $90 a week, easing pressure on household budgets. That kind of relief matters, especially when rental stress is at record highs.
"Supply is the main game in making housing more affordable, whether to buy or to rent. Sharpening the well-intentioned housing incentives will go a long way in tackling our housing crisis."
The council has outlined a series of recommended modifications to the scheme. These include accelerating payment schedules and extending the program duration to seven years, allowing jurisdictions to pursue sustained reform initiatives. The organisation also proposes raising the total allocation to $6 billion to correspond with the magnitude of the housing shortage, with any unallocated funds directed towards future housing development programs.
Further proposals include establishing robust monitoring frameworks with standardised data publication regarding advancement, alongside dedicated mechanisms for inter-jurisdictional information exchange. The council additionally recommends reinforcing coordination across government through the creation of a dedicated Housing Sub-Committee within Cabinet and exploring all feasible mechanisms to promote residential supply growth.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
