Powered by MOMENTUM MEDIA
the adviser logo
Compliance

Parliamentary committee to probe housing affordability

by Sarah Simpkins4 minute read

A parliamentary committee is calling for submissions for a new inquiry into housing affordability and supply in Australia.

The House of Representatives standing committee on tax and revenue has commenced a review into housing affordability, led by committee chair and Liberal MP Jason Falinski.

The inquiry will examine the impact of tax and regulatory regimes on price, affordability and supply of housing in Australia, in the present and into the future.

It is now calling for submissions from interested individuals and organisations. Submissions and evidence will be accepted until 13 September.

Advertisement
Advertisement

Speaking of the need for the review, Mr Falinski echoed statements from the Reserve Bank and other organisations that regulatory settings are “directly responsible for the unresponsive nature of housing supply in Australia.”

“Arguments about the impact of increased subsidies and tax concessions on housing have continued for some time,” Mr Falinski said.

“There is ample evidence that points to the small effect such measures have on supply, indeed the research points to limitations on land and restrictive planning laws as the major causes of shortages in supply.”

Home ownership has been on a decline for the last 30 years, as shown by data from the Reserve Bank, Treasury and the Australian Bureau of Statistics – while OECD analysis recently found Australia had the fourth-fastest house price growth out of the world’s advanced economies over the last 20 years.

The OECD had put the country’s high ratio of housing prices to household incomes down to a high level of inelasticity in housing.

House price growth in Australian cities was also ranked among the world’s fastest, with Canberra coming in at 17th place internationally, for its annual growth rate of 15.7 per cent.

In the 2021 financial year, Australian house prices grew by 13.5 per cent, according to CoreLogic.

Mr Falinski sounded the alarm, commenting: “In my view, this represents an urgent call for action by governments of all levels to restore the Australian dream for this generation and the ones that follow.”

Public hearings for the inquiry will be held in due course.

[Related: Neobank removes LMI up to 85% LVR]

parliament house new ta

Sarah Simpkins

Sarah Simpkins

AUTHOR

Sarah Simpkins is the news editor across Mortgage Business and The Adviser.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Anthony Albanese new ta

Home owners in flood regions offered cash payments

Speaking at a press conference on Wednesday (6 July), Prime Minister Anthony Albanese confirmed that residents in the...

READ MORE
Sam Henley

Fifo invests further into BDM team

According to Fifo Capital (Fifo), Sam Henley joined the lender as its senior business development manager –...

READ MORE
Stephen Hale ta

MFAA launches near-prime, specialist loan resource

Coined Finance for when your customer doesn’t fit the mould: A broker’s guide to near-prime and...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more