The Beagle Editor,
Another excellent Beagle editorial at the weekend.
Our various governments’ and regulators’ inaction over the past 10 years may take another 10 years to correct. Adequate and affordable housing is essential and a core responsibility of government.
State and Federal (perhaps also Local Government) regulator’s mistakes have been many, particularly shrinking government spending on social housing and suspension of many public incentives for new home ownership.
All this has been based on the assumption that ‘the market’ would sense a profit and step up to balance the supply/demand scales. That strategy doesn’t work and never has worked with essential community services and products - and housing is of course an essential product. The market worships at the altar of profit not goodwill.
Homelessness Australia (a national non-profit advocacy group) has estimated that, in real terms, States spending on public housing and aid for the homeless has halved since 2013. This is a wrong that needs to be immediately corrected.
Where would the money come from? Initial funds could be sourced from the Commonwealth should they be bold enough to scrap the Stage Three tax cuts and redirect a chunk of the $240billion saved over 10 years to right the wrong of a neglected social and first home ownership sector.
Additionally, a billion or two could be invested in the currently under-resourced Accelerated Infrastructure Fund. This fund, established in 2020 by the NSW Government, aims to dismantle the many barriers currently discouraging the construction industry from boosting the supply of new homes.
Red tape and cumbersome official planning processes are suffocating initiatives to create more serviced land, to reform unnecessary building regulations, to assist with sourcing quality construction materials and to address the shortage of skilled workers.
Any spare change can be distributed as desperately needed rental assistance. There is likely to be a minimum impact on the Ballot Box given the recent Australian Institute report showing that just 22% of Australians are in favour of retaining the Stage Three tax cuts.
Regards
Kim Odgers
