PIPA: Governments scapegoating investors for ‘bloated’ social housing backlogs
Despite increasing property taxes on private investors by 73 per cent since 2012, governments have failed to reinvest these funds in social housing, claimed the investment body.
The Property Investment Professionals of Australia (PIPA) asserted that state and federal governments are “using private investors as a scapegoat” for the housing crisis despite inadequate investment in social housing.
They stated that governments are “passing the buck” on the rental affordability crisis by failing to meaningfully increase the country’s housing stock of 430,000 social housing dwellings.
“If you want to know why Australia is in such a mess and why so many can’t afford a home, you only need to look at how much the population has grown and the sharp rise in people in need of support and compare it to investment in social housing,” said PIPA chair Nicola McDougall.
As of 2022, social and affordable dwellings made up 4.1 per cent of total housing stock in Australia, according to the Australian Institute of Health and Welfare.
In NSW, social housing is 4.7 per cent of all housing stock; in Victoria it makes up 2.9 per cent of housing, in Queensland it’s 3.5 per cent, and in Western Australia it’s 3.9 per cent. Each of these figures reflects an overall decline over the past 10 years.
During the 2022–23 financial year, the Australian Taxation Office (ATO) recorded $68 billion in property taxes paid to governments, including stamp duty and excluding the capital gains tax.
In the same period, PIPA stated “governments invested just 1.4 per cent of total revenue into housing and community amenities, according to the ATO”.
Meanwhile, 35 per cent of people seeking urgent government assistance have been turned away.
Using Victoria as a case study, PIPA stated that the Victorian government boosted its social housing stock by just 74 dwellings in the four years to 2022.
“During that same period, the bloated waiting list of desperate Victorians needing a roof over their heads has surged to 57,672 households,” said McDougall.
“While talking about fixing the housing crisis, some major state governments have been quietly selling off social housing stock to make a profit, leaving people out in the cold,” PIPA asserted.
“Instead of offering meaningful solutions, getting desperately needed supply into the market and supporting those in the community doing it toughest, governments are passing the buck,” McDougall concluded.
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