The 2020 summit held by the Prime Minister last weekend raised and debated a number of issues on Australia’s future economic and social direction. This included issues surrounding social and community housing and housing affordability.

The Reverend Tim Costello suggested that we need to provide greater public funding for housing. He cited the fact that as a nation only around six per cent of housing is publically provided compared to a much higher level in other counties. Given this low level of publically provided housing, the increasing rates of homelessness and historically low rental vacancy rates there is obviously a need for Government to take action.

In the context of historically high revenues from stamp duties in the states Reverend Costello suggested that 0.5 per cent of the sale price of every house should be placed into a national foundation to contribute to public and social housing and to dealing with homelessness. On a median priced Melbourne house this would equate to approximately $2,500. All States and Territories have different mechanisms to address issues around community housing , however the idea of linking property tax, in a transparent manner, directly to the provision of social and community housing holds merit and is worthy of greater investigation.

A key recommendation from the summit is for the Federal government to undertake a comprehensive review of state and federal taxes with the aim of simplifying taxes, reducing inefficient taxes and, harmonising taxation to ensure a progressive system. Such a review would enable the collection and use of stamp duty revenues to examined in the context of the overall taxation mix.

The REIV looks forward to the Government accepting this recommendation and initiating a program to work with the states and territories to increase funding for public housing.

Article provided by The Real Estate Institute of Victoria

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