ACT in right place to profit from National Cabinet's housing measures to boost supply, says Barr

The ACT is in a good position to implement and benefit from a new national housing target of 1.2 million homes and an extra $3.5 billion in funding agreed to by National Cabinet in Brisbane, Chief Minister Andrew Barr says.

On Wednesday (16 August), National Cabinet also agreed to a range of reforms to strengthen tenant rights and limit rent increases, though the ACT has already legislated its own measures.

The new housing target adds 200,000 homes to the one million previously announced under the National Housing Accord, over five years from July 2024.

The Commonwealth has committed $3 billion to the New Home Bonus, a performance-based program for states and territories that achieve more than their share of the one million well-located homes target under the accord.

It allows for an incentive payment of $15,000 per additional home.

This will be supported by the Housing Support Program, a $500 million competitive funding program for local and state governments to kick-start housing supply in well-located areas through targeted activation payments for things like connecting essential services, amenities to support new housing development, or building planning capability.

Mr Barr said that in return, first ministers had committed to principles for planning and zoning changes that would be crucial to increasing housing supply and housing choice.

“We were already planning to deliver our per capita share of the million homes target and will continue to pursue this necessary objective as one of the fastest growing jurisdictions in the country,” he said.

“Once applications are open for the Housing Support Program we will be ready to submit a range of project proposals to further accelerate the delivery of more new homes.”

Mr Barr said the ACT would implement residential zoning changes as part of the Planning System Review and Reform Project.

He said the changes would provide more medium-density housing choices in existing Canberra suburbs, with new housing built close to transport, public services and jobs.

He said the final Territory Plan and District Strategies would be released soon along with the proposed zoning changes.

First ministers also agreed on endorsing initial state and territory implementation plans under the $2 billion Social Housing Accelerator program, which had delivered $50 million to the ACT.

They also agreed to develop a principles-based, multi-year planning model for migration, to improve collaboration with states and territories on migration settings.

National Cabinet’s ‘A Better Deal for Renters’ aims to harmonise and strengthen renters’ rights across Australia.

This includes developing a nationally consistent policy to implement a requirement for genuine reasonable grounds for eviction, moving towards limiting rent increases to once a year and phasing in minimum rental standards.

Mr Barr said the ACT led the way across the nation in tenancy rights with no-fault eviction protections, minimum standards for rental properties, and preventing excessive rent increases in the Territory.

“Increased supply combined with appropriate prescribed rent caps and no-cause eviction protections – as currently formulated in the ACT – strike the balance of ensuring property maintenance, encouraging further investment and avoiding excessive rent increases,” he said.

Mr Barr has ruled out rent freezes, as called for by the Greens. He said the government’s Rent Relief Fund would be expanded, with further announcements to follow.

The 2023-24 Budget announced a $345 million package of housing measures including a $60 million Affordable Housing Project Fund to grow the number of affordable rental options available at less than market rent.

The Albanese Government’s $10 billion Housing Future Fund remains stalled in the Senate, with the Greens saying it will not do enough to make a dent in the housing crisis.

Prime Minister Anthony Albanese said the Greens were standing in the way of new social and affordable housing.

“This is an initiative that shows how serious we are as state and territory governments across the political spectrum as well as the Commonwealth, understanding that supply is the key,” he said.

“You cannot say you support increased housing supply and vote against the Housing Australia Future Fund.”