Qld plans more affordable homes, less hunger

The Queensland government may not have all the answers to its housing problems, but it certainly addressed most of the questions at its recent round table on the issue.

From making homes more affordable, especially for essential workers, to getting the homeless off the streets and into safe and secure accommodation, there was barely an aspect of this big and varied picture that wasn’t tackled.

To be fair, the issues are so great and widespread that there was never going to be a silver bullet or magic pill. Rents have one up by more than 15 per cent in Brisbane in the past year and the state’s homeless figures have gone up 22 percent in the past five years.

But you have to start somewhere and proposals announced before the round table, based on the findings of a summit held in November last year, included a commitment to building more homes, including encouraging developers to set aside a percentage of the properties as affordable housing, in exchange for lower taxes and access to former government land to build them on.

They are also taking over the rental guarantees of the rent-controlled properties that are coming to the end of their involvement in the federal government’s National Rental Affordability Scheme (NRAS).

But nowhere in Australia is it more obvious that property is seen purely as an investment, rather than a partnership whereby the owners provide homes and the tenants provide a reliable income.

Even the modest change in residential rental laws – rents can only be raised once a year in continuing tenancies – met considerable resistance.

The very idea of a rent freeze was summarily dismissed and even the perfectly reasonable suggestion that rent rises should be pegged to inflation or rises in bank rates was thrown out or not discussed.

Why?  Partly because Queensland investors didn’t want to lose the opportunity for windfall profits in any booming market and partly because they viewed any kind of rent control as the thin end of a potentially huge wedge.

According to a comprehensive report by ABC news, the proposals announced by Queensland Premier Annastacia Palaszczuk  before the housing round table include:

• $28 million for more than 600 emergency hotel accommodation places across the state, for rental and bond support payments, and for food relief services.
• A further $3.9 million to extend and expand food and emergency relief support until 2024
• A second QBuild housing factory will be built in Cairns to build 26 pre-fabricated homes each year for government workers, like nurses and police officers working in the regions.

Housing Minister Leeanne Enoch said the Queensland government had purchased two former retirement villages in Toowoomba and Clayfield which will be converted into 60 homes for social and temporary housing.

A retirement village leased in Redlands will be converted for use as temporary accommodation and will include 26 studio units, plus two three-bedroom houses for people experiencing or at risk of homelessness.

According to the ABC report, Treasurer Cameron Dick also flagged he was considering tax concessions to encourage property developers to construct more build-to-rent accommodation.

Land tax would be halved for up to 20 years for build-to-rent developments that quarantine 10 per cent of their homes for affordable housing.

There could also be a full exemption for the 2 per cent foreign investor land tax surcharge for up to 20 years.

Mr Dick said he would consult with the property industry on the tax concession before they kick in on July 1.

You can read the full ABC News report here and the original Housing Summit report HERE.