'Think twice': Libs warned on anti-build to rent stance
The opposition plans on Wednesday to move a motion in the Senate to halt the Labor government's Build to Rent program, arguing that it's against the national interest because it gives tax advantages to foreign investors.
But the Property Council of Australia, which has more than 2300 members, says attempting to block the building of some 80,000 new rental homes in the middle of a housing affordability crisis is wrong.
"This is wrecking ball policy," Chief Executive Mike Zorbas said on Wednesday.
"The main game, the only game in Australia right now, should be the rapid supply of new housing."
The Build to Rent legislation passed the Senate during the last parliament, ahead of Labor being returned to power at the federal election in May.
Under the laws that applied from January 1 this year, the rate of withholding tax paid by developers halved from 30 to 15 per cent and the capital works deduction rate rose from 2.5 to four per cent, allowing developers to write off the cost of construction faster.
Liberal Senator Andrew Bragg, who is leading the Senate motion, says the program is effectively a "tax cut for foreign investors".
"Labor's obsession with foreign landlords and big super taking over Australian housing once again prioritises vested interests over Australia's national interest," he said on Wednesday.
"The Australian Dream is about people - not corporations."
Under the build to rent model, developers build and retain ownership of properties for rental purposes.
The federal government has previously argued that the private market needs to do the heavy lifting to improve affordability and access to homes.
Almost one-third of Australian households rent and that number is expected to rise in the years ahead.
The government's Build to Rent measure will operate in addition to state and territory initiatives designed to support the Build to Rent sector.
Under the legislation, at least 10 per cent of dwellings in a Build to Rent development must be affordable dwellings, which would be rented at 74.9 per cent or less of the market rate and have income thresholds for eligible tenants.
The Property Council says build to rent housing offers high-quality, secure, long-term rentals in well-located areas and that the model is used in nations with economies similar to Australia's.
But Senator Bragg says the coalition's priority is for Australians of all ages to own their own homes.
The coalition's disallowance motion will go the Senate later on Wednesday.
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