The plan comes at a critical time, with housing affordability at its lowest point since 1996, focusing on increasing supply, supporting first-home buyers, and strengthening the real estate sector’s workforce capabilities.
REIA President, Leanne Pilkington, said there was some urgency in the situation.
“The housing crisis in Australia demands urgent and effective action,” Ms Pilkington said.
“Our Election Commitment Requests presents clear, actionable strategies that will address these critical issues and deliver tangible benefits for Australians across the nation.”
Central to the plan is the acceleration of housing supply through the National Housing and Homelessness Plan, which aims to deliver 1.2 million homes under the National Housing Accord.
The initiative includes measures to encourage older Australians to downsize, freeing up larger family homes for younger buyers.
The proposal also calls for expanding current deposit assistance schemes and revising lending criteria to help first-home buyers enter the market.
This builds upon the success of existing programs like the 2023-24 Home Guarantee Scheme.
REIA is advocating for the expansion of Build-to-Rent developments to address rental property shortages, particularly in urban areas.
This includes maintaining current taxation settings to encourage institutional investment in long-term rental housing.
The institute is pushing for stability in the rental market through the retention of negative gearing and capital gains tax exemptions.
“These measures are crucial for maintaining investor confidence and preventing upward pressure on rents,” Ms Pilkington said.
A significant focus has been placed on supporting small businesses within the sector, particularly regarding new anti-money laundering and counter-terrorism financing obligations.
The plan also notes the importance of including real estate professionals in critical workforce initiatives.
“By advocating for these reforms, REIA is not only aiming to resolve immediate housing market challenges but also laying the foundation for long-term housing stability and growth,” Ms Pilkington said.
The institute has also called for an inquiry into state and territory property tax frameworks, with a view to eventually phase out stamp duty, making housing more accessible for Australians.
“The housing crisis in Australia demands urgent and effective action,” Ms Pilkington said.
“Our plan provides a comprehensive response to supply issues and positions the real estate sector as a key partner in addressing the housing crisis.”
Key Elements of REIA’s Vision for 2025
1. Fast-Tracking Housing Supply
A key focus of REIA’s strategy is the acceleration of housing supply, particularly through the implementation of the National Housing and Homelessness Plan. The REIA is calling for the swift delivery of 1.2 million homes under the National Housing Accord, which aims to meet housing demands over these five years. This includes initiatives to encourage older Australians to downsize, thereby freeing up larger family homes for younger buyers.
2. Supporting First-Home Buyers
REIA’s plan also includes expanding current deposit assistance schemes and revising APRA’s lending criteria to pave the pathway to homeownership for young Australians and key workers. By building on successful schemes like the 2023-24 Home Guarantee Scheme, the REIA aims to provide more opportunities for first-time buyers entering theproperty market.
3. Expanding Build-to-Rent Developments
To address the shortage of rental properties, particularly in urban areas, REIA is advocating for the expansion of the Build-to-Rent (BTR) model. The institute calls for maintaining current taxation settings and supporting institutional investment in these developments to increase and sustain the supply of long-term rental housing.
4. Ensuring Tax Stability
To preserve investor confidence and stability in the rental market, REIA is calling for the retention of the current negative gearing and capital gains tax exemptions. These policies are crucial for maintaining the flow of investment into the rental market and preventing upward pressure on rents.
5. Phasing Out Stamp Duty
REIA is calling for an inquiry into the impacts of state and territory property tax frameworks with a view to phasing out stamp duty. The proposed reforms aim to reduce the financial burden on property transactions and make housing more accessible for Australians.
6. Supporting Small Businesses
With many real estate agencies being small businesses, REIA is proposing measures to reduce regulatory burdens, particularly in relation to the impending anti-money laundering and counter-terrorism financing obligations. These changes will encourage small businesses’ compliance while promoting sector compliance.
7. Workforce Capability
REIA also advocates for the inclusion of real estate and property services, including property managers, in the Skilled Occupation List and the Australian Apprenticeships Incentive System Priority List. This initiative will build a skilled and professional workforce capable of managing Australia’s $3 trillion rental market.
