Property Council urges more urban land, low-deposit loans in housing affordability plan

Nobody can repeal the law of supply and demand so what the rising prices clearly reveal is that supply is not keeping up with demand. And that is so.  With Australia taking in a couple of hundred thousand immigrants in every year, something like a couple of hundred thousand new houses need to be built.  Because of the slowness of local councils to release more building land, that is not happening.  Councils are the choke point.  But how anybody can squeeze their balls remains to be seen


The lobby group representing property developers has unveiled a "10-point plan" to boost housing affordability in Australia's major cities, urging an increase in the availability of urban land, a system of low-deposit home loans and incentives for older home owners to downsize.

The Property Council, which has been a high-profile opponent of Labor's proposals to curb negative gearing and capital gains tax concessions, has released its plan two weeks out from the government's budget, which will outline a suite of housing affordability measures.

Released on Wednesday, their plan reiterates the council's opposition to negative gearing reform, and calls for an increase in housing "supply, diversity and choice" through a strategy that increases the amount of land for new homes supported by infrastructure in capital cities.

It wants charges and "red tape" to be reduced to make it cheaper for property developers to build, incentives for states to reform competition policy, risk-assessed low-deposit loans for owner-occupiers, the creation of "built to rent" housing, and the phasing out of stamp duty.

The low-deposit loan scheme would be based on Western Australia's Keystart program, which has been accessed by 85,000 people and results in fewer defaults than the market average, according to the Property Council.

The council also suggests boosting the supply of fit-for-purpose retirement living, and protecting some surplus cash from the pension-assets test.

Winding back stamp duty, the group said, would make the tax system more efficient and increase economic growth.

Average dwelling prices were 6.9 times average wages in 2016, up from 4.3 times average wages 15 years ago. In 2001, it took 85.9 per cent of the average household income to pay for a home deposit. This rose to 138.9 per cent in 2016.

"For 20 years we have had a logjam of costly regulation, poor planning decisions and excessive taxation across all levels of government. This has driven up construction costs, impeded supply, and resulted in the dramatic increase in house prices in our major cities," Property Council chief executive Ken Morrison said.

"Our plan seeks to support housing construction, broaden housing choice, reduce unnecessary construction costs, incentivises the states to undertake planning reform, induce institutional investment in new rental stock, and help first home buyers bridge the deposit gap."

The report outlines lagging supply, strong population growth, monetary policy, strong employment levels, low inflation, low interest rates and increased competition in the mortgage market as drivers of house prices.

Mr Morrison said negative gearing underpins the rental market and warned the government to "tread carefully otherwise it runs the risk of undermining the flow of jobs and investment throughout the economy".

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Vic Police have 'lost the plot': Glare

Former police commissioner Kel Glare says he's prepared to be labelled "mongrel of the month" by saying Victoria Police has "lost the plot" when it comes to crime prevention.

Mr Glare says the "crime tsunami" hitting Victoria wouldn't have happened under his watch.

"When it comes down to it, we need a radical change from what we are seeing now," he told reporters in Melbourne.

"Victoria Police has withdrawn most or if not all of their crime preventative measures."

The Community Advocacy Alliance, which Mr Glare heads, released its Plan 100 for law and order in the Victoria on Wednesday with the backing of opposition leader Matthew Guy.

It focuses on crime prevention through programs for youth and making the victim the centre of the justice system.

Mr Glare was the state's chief commissioner from 1987 to 1992.

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ABC presenter savaged for 'disrespecting Anzacs'

ABC presenter Yassmin Abdel-Magied has been savaged on social media after suggesting Australians should spare a thought for those on Manus Island and in Syria instead of the Anzacs.

The host of the ABC 24's Australia Wide program fell afoul of Facebook users today when she posted "Lest We Forget (Manus.Nauru. Syria. Palestine)".

She was forced to delete the post after receiving a barrage of comments from irate social users. "It was brought to my attention that my last post was disrespectful, and for that, I apologise unreservedly," she wrote in a follow up post.

While the 26-year-old author may have hoped her apology would be taken for what it was, Abdel-Magied found herself the target of venomous, racist abuse.  "You disgusting piece of low life. Disrespecting our country's veterans. You aren't Australian. Go to hell," one incensed Facebook user wrote.  "Too late now you best leave you are hated in this country, your ISIS brothers will take really good care of you," another wrote.

While another wrote: "You are utter filth. I hope you get sacked for your disgraceful ignorance and insolence. Pig!"

Ms Abdel-Magied is not shy of controversy; in February this year she was engaged in a screaming row with Senator Jacqui Lambie on Q&A. The verbal stoush was triggered by a debate on US President Donald Trump's proposed Muslim ban.

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Family First takeover: Cory Bernardi looks for more mergers after 'great day for conservatives'

Breakaway senator Cory Bernardi says he will pursue mergers with other conservative parties and seek more defections from the Liberal Party after Family First folded its operations into his nascent Australian Conservatives party.

Family First, a socially and economically conservative party launched in 2001, will no longer exist from Wednesday and its two South Australian MPs will switch to serve under the Australian Conservatives banner.

With Senator Bernardi set to gain thousands of members, finances and two state MPs, how will the new conservative marriage between him and Family First impact the federal political landscape?

The merger will give Senator Bernardi access to Family First's party infrastructure - including mailing lists - but will not boost his party's representation in the Senate.

While welcoming the merger, Family First senator-elect Lucy Gichuhi said she planned to serve as an independent rather than join forces with Senator Bernardi.

Senator-elect Lucy Gichuhi with former Family First senator Bob Day during last year's election campaign.
Senator-elect Lucy Gichuhi with former Family First senator Bob Day during last year's election campaign. Photo: Facebook

"While I respect the decision of Family First to join with Australian Conservatives, given the circumstances and the time frames, I have not been able to determine if joining this new entity is the best way for me to serve the people of South Australia," Ms Gichuhi said in a statement.

"It is on that basis that I have decided to serve as an independent senator for the time being."

Ms Gichuhi will be sworn into the Senate next month after the High Court decided Family First senator Bob Day's election was invalid because he had an indirect pecuniary interest with the Commonwealth.

Mr Day, who has bankrolled Family First in recent years, gave a curt "no comment" when asked by Fairfax Media on Wednesday whether he supported the merger.

Speaking at a press conference in Adelaide, Senator Bernardi said: "I hope it's not the last amalgamation. "I welcome minor parties, I welcome former colleagues [and] existing colleagues, who want to be part of a team that really, genuinely wants to make politics different."

Senator Bernardi said the two parties were a "natural fit" and the merger would strengthen the conservative movement across Australia. He wished Ms Gichuhi well with her career.

South Australian Family First leader Dennis Hood said it was a "great day for Family First and we believe it is a great day for those on the conservative side of politics in Australia". "Finally, those on the conservative side of politics will have a united conservative voice in which to support and park their vote," he said. "We are excited about the prospect that holds."

Mr Hood said all of Family First's state branches and its federal executives agreed to join forces with the Australian Conservatives. "This is a unanimous decision," he said. "There has been no dissension within the Family First party at all."

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