affordable housing for all australians swan

Note: "ALL"

well well well, this is in contrary to the permabull opinion of some on here.

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Affordable Housing for All Australians

Given that this event is sponsored by the Property Council, let me turn to another reform priority housing reform.

Doing all we can to enable a strong economy is essential to delivering a rising standard of living for all Australian families but it will not be enough. Australian families also need affordable homes.

Recently the topic of home ownership has come up in my own home with two adult daughters and a teenage son, it's a topic I am always happy to encourage! Like many parents, I am concerned by how difficult it is for my daughters to access home ownership. I have lived in the same house for over 30 years and have enjoyed all the benefits that come with home ownership. Like most parents, I want my kids to be able to access the same opportunities that I have had through home ownership.

Australian house prices have grown strongly over the past 15 years, having more than tripled since 1995. This price growth has not been limited to our capital cities many regional and rural areas have also seen big rises.

Of course, for those Australians who already own homes, higher house prices may be welcome. But for those Australians seeking to enter the housing market, high house prices and rents make the transition to home ownership or getting into the rental market all the harder.

I think that one of the reasons that Australia has relatively high house prices and rents is because of an inability to supply more housing in the face of strong demand. In fact, the supply side of the housing market has struggled to keep pace with demand for over a decade now.

The Australian housing market has seen around 150,000 dwellings built each year over the past decade. This compares with estimates by the National Housing Supply Council of underlying demand in excess of 200,000 dwelling units in 2008-09. Once they factor in other issues, like replacing demolished stock, the Supply Council estimates that Australia has a current supply gap of around 178,400 dwellings. If recent patterns continue, this gap could grow to more than 600,000 dwellings by 2028-29.

It seems that the supply of housing in Australia is not as responsive as it could be and this has been the case for some time now. That is, we are simply not building enough houses and units.

One of the reasons we are not building enough homes is because of the impediments created by various regulations, slow planning and zoning processes, and complex, uncertain and time-consuming systems for charging developers for infrastructure. In the worst-case scenario, it can take as long as 15 years to proceed from the identification of suitable land to a completed house. We can do better than this.

We need a housing market that is more responsive to demand. A market in which available land is released promptly, with development not hampered by uncertainty around infrastructure charging. A market that delivers a range of housing types to help ensure that housing is not beyond the reach of some of the most needy in society. And a market that is responsive to Australians' desire to change their housing as their life circumstances change.

The Government's Housing Policy Response
We have been mindful that the solutions to improving housing affordability lie in increasing the supply of housing and supply responsiveness. Most of our policies have been targeted at increasing the supply of housing, especially for the less well-off and most vulnerable groups in society.

Much of the Government's efforts in this regard have been led by Jenny Macklin and especially the Housing Minister, Tanya Plibersek. I think they have done a magnificent job.

We signed a $6.2 billion national affordable housing agreement with the states to deliver affordable housing to the less well-off.

We delivered a further $5.2 billion of stimulus money to build more than 19,300 homes and maintain the existing public housing stock. Recent dwelling commencement figures highlight the importance of this stimulus funding to the housing sector. Public sector housing commencements were up 73 per cent in the latest quarter while the number of private commencements was flat.

We introduced the National Rental Affordability Scheme to encourage institutional investors to deliver low-cost rental housing in our big cities. And I am proud to say that as at May 2010, at least 1,700 dwellings have been built and are available for rent at below market rates. And based upon what participants are telling us, we expect that by 30 June 2011 this figure will grow to over 8,000 dwellings.

We have also introduced the $512 million Housing Affordability Fund (HAF) to drive reform among state and local governments' planning and zoning processes and infrastructure delivery.

We are providing more incentives for young people to save for their first home through First Home Saver Accounts.

We supported the housing market through the worst of the GFC through the First Home Owners Boost.

We have committed to much-needed investment in land transport infrastructure ($37 billion), including $27.7 billion in urban and regional roads. This infrastructure will help support housing. And we have moved to encourage better planning of our cities to ensure our infrastructure is being used and planned for efficiently.

These are all important steps and they will all contribute to improving the functioning of the Australian housing market and in particular, the supply of low-cost housing. But being aware of the scope of the challenges in the housing market, I recently announced with the states a reform agenda for further improving housing supply and affordability.

The Commonwealth and state treasuries and premiers' departments are now fully engaged in the process of designing reforms to improve the operation of the housing market. I'm determined to see the Australian Government play a role in reforming the housing market for the long term, embedding better practices in planning and zoning and developer charging.

I was pleased to see the NSW Government recently announcing much-needed reforms to its planning processes and reductions in stamp duties.

Recently, Dr Steven Kennedy from my department outlined some broad principles for infrastructure charging including that charges should be efficient, transparent and accountable. These principles are designed to lower the costs associated with uncertainty surrounding infrastructure charges and to increase transparency.

I am pleased that the Property Council has engaged with this reform process and hope we can continue to constructively pursue solutions.