The Beagle Editor,
This weekend’s Beagle opens with another excellent editorial addressing Australia’s acute housing shortage.
My only criticism is that the article is long on ‘issue’ and short on ‘solutions’. Over the past few years, commentators in mainstream and social media have followed a similar limited approach without offering a strategy to solve this mess.
Housing shortages are common around the world, all caused by Government inaction, Covid, supply line shortages, increased demand, decreasing supply, falling skilled labour numbers, low interest rates, etc.
In Australia, Councils agitate for greater State Govt action. State Govts in turn are hampered by a Federal Govt funding handbrake. Meanwhile demand for housing ever increases (particularly amongst the growing millennial age group) while supply (new housing) grows at only glacial pace.
Councils can do only so much. Upzoning (high density development) is a strong initiative that I think our Council is addressing, particularly in Batemans Bay. Designating more land for residential development is another provided we can increase necessary skilled labour numbers.
The NSW Govt is responsible for housing but requires the Federal Govt to boost required funding. The Federal Govt states that it is financially hampered itself. Stalemate? Nonsense.
The Feds, the issuer of our currency, can always generate additional cash (without increasing taxation) provided that the additional cash is a positive for the economy. That is, for every new dollar generated and spent, there is a net improvement to the economy. Alternatively, several billion dollars could be raised by increasing GST on non-essential goods by 1%.
The Defence Housing Board has been successfully operating for decades and returns a profit. An Australian Housing Authority properly funded and administered would do the same.
A substantial boost in skilled migration numbers is essential. This would increase the pool of housing construction workers and reduce housing costs.
Financial incentives, such as low interest loans for the buyer and tax incentives for the builder, should be offered. Abolish Stamp Duty for first home buyers and withdraw negative gearing benefits for the investor.
Fed Govt to introduce initial rental relief for social housing and down payment assistance for first home buyers. Loosen up bank regulations by providing banks with government guarantees for first home buyer loans.
I road tested the above suggestions to a friend of mine who, rather too quickly, replied ‘The government would never go along with that.’
Why not?
Kim Odgers
