Boost for housing supply in 2023 federal budget

The Australian Institute of Architects has welcomed measures in the 2023-24 federal budget aimed at boosting housing supply, diversity and affordability.

The federal government committed to boosting the housing supply by 1 million new homes from 2024.

The budget included measures to halve the rate of withholding tax on build-to-rent developments from 30 percent to 15 percent, increase the capital works depreciation rate from 2.5 percent to 4 percent and increase after-tax returns on new build-to-rent developments. The government estimates this will create 150,000 rental properties over 10 years.

The government also allocated a $2 billion increase to the National Housing Finance and Investment Corporation's liability cap, taking the total to $7.5 billion, which will support lending to community housing providers for social and affordable housing projects.

"We welcome the government's prioritization of housing as a key issue in this year's budget," said the Institute's national president, Shannon Battisson.

"These initiatives will help to unlock Australia's housing challenge. We will continue to support greater investment from the Australian and state governments into public housing."

The budget also included measures to upgrade the energy efficiency of existing homes, allocating $1 billion to the Clean Energy Finance Corporation to provide 110,000 low-interest loans for energy-saving home upgrades in partnership with private lenders.

A further $300 million has been designated for energy performance upgrades to social housing.

"This is a win-win for both housing and energy reductions," Battison said. "These initiatives will promote sustainable and efficient practices for Australians."

The Institute also welcomed allocations in the budget for a national approach to sustainable urban development, including:

The government will also invest $3.4 billion over ten years to develop venue infrastructure for the Brisbane 2032 Olympic and Paralympic Games.

The Institute expressed disappointment at the lack of funding for an Australian Government Architect Office with specific funding for First Nations housing and co-design.