The Albanese Labor Government is taking a number of actions in next month’s Budget to improve the supply of rental housing, including to support more social and affordable rental housing. These commitments will help more Australians secure a safe and affordable place to call home.
The Government will support an additional $2 billion for more social and affordable rental housing in next month’s Budget, increasing NHFIC’s liability cap from $5.5 billion to $7.5 billion from 1 July 2023.
This additional financing will enable NHFIC to support more social and affordable rental homes by providing lower cost and longer-term finance to community housing providers.
Minister for Housing Julie Collins said the $2 billion financing boost will support the Government’s commitment to deliver more social and affordable rental homes.
"The Albanese Labor Government was elected with an ambitious housing agenda,” Minister Collins said.
“This boost in the Budget will help get more Australians into affordable rental homes sooner.
“This is action that will have a real impact on people’s lives, and will support our plans to build tens of thousands of additional social and affordable rental homes right across the country.”
The Government will also offer incentives in next month’s Budget to increase the supply of rental housing by changing arrangements for investments in built-to-rent accommodation:
- Increasing the depreciation rate from 2.5 per cent to 4 per cent per year for eligible new build-to-rent projects where construction commences after 9 May 2023.
- Reducing the withholding tax rate for eligible fund payments from managed investment trusts to foreign residents on income from newly constructed residential build-to-rent properties after 1 July 2024 from 30 to 15 per cent, subject to further consultation on eligibility criteria.
These Budget measures will together help boost the supply of rental housing in Australia.
Reforms to support renters’ rights
These measures complement the decisions taken by National Cabinet today to develop reforms to increase housing supply and affordability, and put renters’ rights front and centre, with states and territories committing to work to strengthen renters’ rights.
Housing Ministers are due to meet next week, where there will be further discussion on developing these reforms.
Minister Collins welcomed National Cabinet’s agreement.
“The National Cabinet agreement is a significant step forward in making sure renters have certainty about their tenancy, so they can create a home,” Minister Collins said.
“I look forward to meeting with my state and territory counterparts next week as we move forward on these reforms.”
The measures announced today will support the Albanese Government’s ambitious housing agenda to build more social and affordable homes, which includes:
- The $10 billion Housing Australia Future Fund, the single biggest investment in social and affordable housing by a federal government in more than a decade, which will build 30,000 new social and affordable rental houses in its first five years.
- A new National Housing Accord, a shared ambition to build one million new well-located homes over five years from 2024.
- Investing $350 million in additional Federal funding to deliver 10,000 affordable rental homes over five years from 2024 as part of the Accord; and
- Widening the remit of the National Housing Infrastructure Facility, making up to $575 million available to invest immediately in social and affordable rental homes.