The ACT Government last week laid out the housing package in the upcoming ACT 2022-23 Budget and has committed to developing around 30,000 new dwellings across the next five years. But will it help to ease the ACT’s housing crisis?  

The government said the “comprehensive” package will improve affordability, diversity, and supply of housing in Canberra, and needs will continue to be met as the territory’s population grows.

Under the housing package, the total housing supply in the ACT will grow from 180,000 dwellings to around 210,000 dwellings by 2027.

Chief Minister Andrew Barr says Canberra’s housing market has been squeezed due to the city experiencing nation-leading population growth over the past 10 years.

He said this Budget will further improve housing supply and affordability, and the ACT Government is “taking further steps to ensure Canberrans have access to safe and secure homes”.

Minister for Housing and Suburban Development Yvette Berry said additional and improved public housing is a priority, and the ACT Government is committed to addressing housing affordability.

“We are particularly focused on helping low to moderate income households have access to safe, secure and affordable housing,” Ms Berry said.

“With this new budget initiative, we are continuing to work towards the delivery of 600 affordable rental homes by 2025-26, working to increase the supply of properties in the market and improving access to housing for vulnerable members of our community.

“We will continue to implement the ACT Housing Strategy and examine the range of programs we have available, and keep working with the community and industry to identify more opportunities to support and improve housing affordability in the Territory.”

ACT Government housing package rundown

Additional land release

Part of the 2022 Indicative Land Release Program (ILRP), 16,417 dwelling sites will be released over the next five years.

Minister for Planning and Land Management Mick Gentleman said the Program is an “important mechanism” in facilitating housing options for all income levels.

“The ambitious target set out in the ILRP will guide the ACT Government’s work investigating the viability of and preparing land for sale over the next five years,” Mr Gentleman said.

“We’re committed to ensuring every Canberran has a place to call home and this package of budget initiatives represents further progress toward that goal.”

Build-to-Rent

The Build-to-Rent prospectus will be released, outlining the ACT Government’s plan to encourage more developments under the scheme and provide financial support on affordability components in proposals.

Block 3 Section 57 in Turner will be released in 2022-23 to pilot the Build-to-Rent program with an affordable rental component through a market process. 

Commonwealth partnership opportunities

The ACT Government said they will work closely with the Commonwealth Government in the wake of their affordable housing policy commitments.

They say the ACT can expect around 600 additional properties based on a per capital allocation.

The ACT Government also committed to partnering with the Commonwealth Government on the CSIRO Ginninderra site redevelopment.

Fourth year of the Growth and Renewal Program

A further $30 million investment will be added to support the Growing and Renewing Public Housing program, which will add a further 140 public housing dwellings towards the 400 already promised by the ACT Government.

Furthermore, $57.3 million will be spent to undertake public housing repairs and maintenance to “maintain high quality public housing”, adding to the $80 million announced in last year’s Budget.

Ms Berry said that “by building 400 homes and upgrading 1,000 existing properties, the ACT Government is providing tenants with homes that meet their changing needs, are adaptable and suitable for people with a disability or to age in place, and cheaper to heat and cool with an energy efficient design and new appliances.”

Tax reform

The ACT Government will continue to reduce stamp duty for property purchases and have committed to cut stamp duty in every Budget this parliamentary term.

New policy directions to address housing affordability

Separate funding has been allocated to “explore additional policy options” to put towards improving social housing, including examining the Affordable Home Purchase Scheme.

Canberra Liberals unimpressed with housing package

The Canberra Liberals say the housing package is unlikely to provide genuine choice for Canberrans, although the announcement suggests the ACT Government has “finally” admitted inadequate housing is prevalent in the ACT.

Canberra Liberals Leader Elizabeth Lee is under the impression the ACT Government is scrambling under scrutiny, and the housing package announcement is all smoke and mirrors.

“This announcement has been made by a government that is under pressure and wanting to appear as though it is doing something about housing,” she said.

Ms Lee described the Chief Minister’s indicative land release program increasing residential sites released from 3,180 to 3,910 as “said with much fanfare”.

But she said it only realistically equates to a “couple of hundred extra blocks of land a year for standalone housing”.

“The Chief Minister has failed to provide information about how many of these blocks will be for standalone housing; where they will be located and what assurances he gives that they will actually be delivered.”

Ms Lee said the Canberra Liberals will be further prosecuting the matter of housing once the Chief Minister releases the entirety of the 2022 ACT Budget information at the upcoming estimates hearings.

ACTCOSS welcome the initiatives

In contrast, the ACT Council of Social Service (ACTCOSS) have welcomed the housing package, particularly the $30 million public housing investment and the $57.3 million for public housing repairs.

ACTCOSS CEO Dr Emma Campbell called the announcement “long-awaited and desperately needed” and said it acknowledges housing affordability and homelessness advocacy from ACTCOSS, ACT Shelter, and the Community Housing Industry Association.  

Dr Campbell said the 400 public housing dwellings previously promised by the ACT Government should be funded through the investment, while also providing the required resources to improve existing public housing stock.

ACTCOSS has also welcomed a slew of additional initiatives including encouraging developers to partner with community housing providers (CHPs) to deliver more affordable rentals and new affordable housing models.

“Our not-for-profit CHPs stand ready to deliver affordable rentals for Canberrans. However, they need appropriate financial support from the ACT Government, including access to affordable land and subsidies,” Dr Campbell said.

“If given this boost, CHPs can leverage this to access additional investment from the Commonwealth Government and other sources including superannuation funds.”

She said public and social housing must also be a considered in the expanded land release initiative, the CSIRO Ginninderra site development, and AIS renewal, because they “must deliver for those who have the least”.

Dr Campbell said that ACTCOSS, along with other stakeholders, will continue to work closely with the ACT Government to ensure social and affordable homes are significantly included in any future developments.

MBA says without reforms, government will fall short

Master Builders ACT (MBA) CEO Michael Hopkins said the ACT Government’s view that more supply is necessary to ease the ACT’s housing affordability crisis aligns with the MBA’s recent calls for more land releases.

However, he said that to deliver the land release program, the ACT needs “more than numbers on a page”.

Mr Hopkins said the land release program will fall short of its aimed 16,417 dwelling sites if the ACT Government fails to implement planning reforms to unlock the potential of RZ1 zoned land, urgently implement building quality reforms, and fix the “broken” development approval system.

“Remarkably, the government has doubled down on its commitment that 70 per cent of new housing will be in the form of units and apartments despite the latest ABS figures showing that 70 per cent of the ACT’s households are families, with the majority comprising traditional nuclear families,” he said. 

“Until the Government realises that its housing strategy needs to serve the needs of the community, not deliver arbitrary infill targets, the price of single housing in Canberra will continue to skyrocket.”

Get local, national and world news, plus sport, entertainment, lifestyle, competitions and more delivered straight to your inbox with the Canberra Daily Daily Newsletter. Sign up here.