National Cabinet has agreed on an ambitious new national target to build 1.2 million new well-located homes over five years, from 1 July 2024. This is an additional 200,000 new homes above the National Housing Accord target agreed by states and territories last year.
The Commonwealth has committed to $3 billion for performance-based funding, the New Home Bonus, for states and territories that achieve more than their share of the one million well-located home target under the National Housing Accord.
This will incentivise states and territories to undertake the reforms necessary to boost housing supply and increase housing affordability, making a positive and practical difference for Australians planning to buy a home.
The target will be supported by the Housing Support Program, a $500 million competitive funding program for local and state governments to kick-start housing supply in well-located areas through targeted activation payments for things like connecting essential services, amenities to support new housing development, or building planning capability.
The updated target will help align supply with expected demand over the next five years, and when linked with Commonwealth infrastructure funding, will produce more neighbourhoods and communities that have the services they need.
National Cabinet also agreed to a National Planning Reform Blueprint with planning, zoning, land release and other measures to improve housing supply and affordability.
The Blueprint includes: updating state, regional, and local strategic plans to reflect housing supply targets; promoting medium and high-density housing in well-located areas close to existing public transport connections, amenities and employment; and streamlining approval pathways.
First Ministers also agreed on further significant measures to boost housing supply and better coordinate Australia’s migration settings including:
- Endorsing initial state and territory implementation plans under the Social Housing Accelerator.
- Developing a principles-based, multi-year planning model for migration, to improve collaboration with states and territories on migration settings.
National Cabinet has agreed to A Better Deal for Renters to harmonise and strengthen renters’ rights across Australia. This includes:
- Developing a nationally consistent policy to implement a requirement for genuine reasonable grounds for eviction.
- Moving towards limiting rent increases to once a year.
- Phasing in minimum rental standards.
These changes will make a tangible impact for the almost one-third of Australian households who rent.
The Property Council of Australia Chief Executive Mike Zorbas said the National Cabinet’s commitment to strategic and sustainable planning accounts for population growth and aims to be agile, accountable and coordinated at the state and territory level.
Mr Zorbas said the Property Council had long-championed national competition-style payments for states that succeed at city planning and housing supply performance.
“National Cabinet is tackling our housing supply deficit in a coordinated way for the first time in a long time,” Mr Zorbas said.
“Today, National Cabinet has taken a big-picture approach to housing supply improvements that, if successful, will boost access to housing for all Australians.
“The New Home Bonus, the Housing Support Program, the National Planning Reform Blueprint, the Social Housing Accelerator and the rental deal all strike a sensible balance in progressing toward affordable new housing supply.
“Decades of strategic failure by governments has left us an unacceptably land-rich, housing poor nation. There is a deficit of supply in social, key worker and at market housing across the country.
“Our state planning systems don’t do what every Australian needs them to do – take a statewide view and accept nationwide accountability for providing all Australians with the chance to have a roof over their heads.”
