ACT Labor has promised to deliver 30,000 more homes by 2030; to encourage ‘missing middle’ housing; and to eliminate stamp duty as part of its “proven and practical plan for more housing”.
“Canberrans want more homes to buy and rent across the city, and Labor’s plan will deliver the housing future generations will need, while putting in place necessary environmental protections on sensitive land,” a Labor spokesperson said.
Last month, the ACT Government committed to release more than 866,000 m2 of land by 2029, and nearly 97,000 m2 of land in 2024–25. Labor claims this will lead to 21,00 new homes by the end of the decade.
“This includes both medium density infill sites and new suburban land that will give more housing choices, where people want to live,” a Labor spokesperson said today.
However, the Master Builders Association (MBA) of the ACT has warned that the land would not be shovel-ready for many years: 58 per cent of the 2024–25 land commitment was from a site being re-released, and was not likely to be fully available for new house construction for several years; and that the latest land release came after one of the lowest releases in years: 1,883 dwellings this financial year. Likewise, the Canberra Liberals have argued that the government could have doubled the amount of land it released at any time, and that the current policy deprives Canberrans of choice, while the ACT Greens claimed projected public housing is insufficient.
Labor said it would work with the Commonwealth Government to provide thousands of new homes at the CSIRO Ginninderra site, and with Thoroughbred Park to provide additional housing opportunities. The ACT Greens have argued that the Lyneham racecourse should be turned into a new residential suburb for 10,000 people.
Labor said it would encourage the construction of new, well-designed ‘missing middle’ housing in established suburbs. A missing middle design guide would be developed, and the planning system would be changed to encourage the construction of low-rise housing in residential areas. More housing choices like townhouses, terraces, row houses and duplexes in existing suburbs would address a key gap in the Territory’s mix of housing types, a Labor spokesperson said.
Labor said it would support housing at local shopping and group centres.
“By encouraging mixed-use developments and ‘shop top’ housing, Canberrans will have access to more well-located housing options,” a spokesperson said.
Labor said it would make it cheaper to buy a home by continuing to cut stamp duty, as it has done since 2012. Over the next four years, Labor will remove stamp duty (a tax on property sales) for all first home buyers, pensioners, and off-the-plan unit titled purchases, and for all vacant land purchases for new housing. This would apply no matter the buyer’s income, or the value of the new apartment, townhouse, duplex, or vacant land – as long as it is the buyer’s principal place of residence.
“Through these measures, Labor will deliver early on our long-term commitment to fully abolish stamp duty for a number of property purchasers, prioritising owner occupiers that are buying their first home, pensioners looking to downsize, and those buying new housing through off the plan unit tilted properties or vacant land,” a Labor spokesperson said.
Since 2012–13, ACT Labor has aimed to rebalance its tax base by gradually eliminating stamp duty and increasing general rates (higher property taxes) over 20 years. However, the Canberra Liberals say that many households have seen their rates increase significantly, and that the government is failing to abolish stamp duty as promised. A financial report published last week forecast that the revenue reduction from stamp duties would surpass the increase from general rates through 2027–28; payroll tax revenue (a tax on wages paid by employers) would increase by 4.4 per centage; and the percentage from general rates would decline slightly by 0.1 percentage points.
ACT Labor will release its plan to build more social and affordable housing before the election.
“As more people choose to call our city home, Labor will continue to deliver the housing and infrastructure Canberrans need,” a Labor spokesperson said.
ACT Greens: Labor ‘repackages existing government policy’
ACT Greens leader Shane Rattenbury criticised Labor for offering nothing new.
“In a housing crisis, we need more than business as usual – we need a transformative plan to deliver more homes, and homes that people can actually afford.
“ACT Labor’s announcement today simply repackages existing government policy, and tries to claim it as a solution to a growing housing crisis,” Mr Rattenbury said. “Canberrans will likely be underwhelmed by Labor’s lack of new ideas.
“What we really need is an ambitious plan for more public housing, because the current housing crisis is being driven not just by a lack of supply, but a lack of affordable supply.”
The Greens would commit $2.2 billion to build and buy 10,000 public homes over the next decade – what they say is “the biggest housing affordability initiative ever proposed in the history of self-government”.
“Labor cannot credibly claim they are going to follow a policy of ‘missing middle’ infill while they continue to want to build homes on the edges of our city, paving over the natural environment,” Mr Rattenbury continued.
“The Greens will build within our current city footprint, making sure all new homes are next to transport routes, shops and other services.
“If Labor were serious about the housing crisis, they would have supported the Greens plan to deliver not just more homes at Thoroughbred Park, but an entire neighbourhood with all the facilities people need – like schools, shops and parks. Instead, they just want to give a handout to their mates at the racing club.
“Canberrans expect more, and that’s what the Greens are offering.”
REIACT: Promising, but lacks detail
The Real Estate Institute of the ACT (REIACT) was pleased that the government was focused on increasing housing supply, but called for more details on how it would deliver the new properties, and said the high cost of land in new suburbs made it difficult for young families to afford standalone homes.
“REIACT is encouraged that the ACT Government is shifting its focus to supply as the key to proving affordable housing options for the ACT Community,” CEO Maria Edwards said.
“More detail in relation to how these new properties will be delivered also needs to be addressed.
“The cost to purchase blocks of land to build standalone dwellings in the newer suburbs remains an issue, with, for example, 255 blocks of land currently available in Whitlam, the cheapest being $524,000 for a less than 300m2 block. Once you add on build costs, this is stretching the limits of affordability for young families who would normally be the target of these areas.
“Having blocks available for builders and developers to create medium density housing is all well and good as long as they are able to deliver projects that are of good quality and that purchasers off the plan can be confident that the projects will be finished on time and on budget.
“Better medium density housing outcomes requires a more co-ordinated approach between industry and Government whereby those working at the coal-face, such as builders, developers and agents, are seen not as self-serving enemies but as professionals that recognise that a healthy housing industry requires a balance between innovation and regulation, and most importantly, consultation.”
