The National Cabinet has delivered a package of housing and rental reforms that it hopes will create additional affordable housing units.

The Cabinet hopes to build 1.2 million well-located homes from 1 July 2024, 200,000 above the National Housing Accord target agreed by states and territories last year.

Up to $3 billion in incentives will be on offer for state and local governments if they assist in reaching the ambitious targets, made possible by the New Home Bonus.

$500 million has been allocated to the total under the Housing Support Program, which will assist local and state governments in kick-starting construction of new housing, with targeted payments to help with amenity, essential services and planning.

National Cabinet also agreed to a National Planning Reform Blueprint with planning, zoning, land release and other measures to improve housing supply and affordability, which will see strategic plans updated to reflect supply targets, promoting medium and high-density housing in well-located areas close to existing public transport connections, amenities and employment and streamlining approval pathways.

"All governments recognise the best way to ensure that more Australians have a safe and affordable place to call home is to boost housing supply," says Prime Minister Anthony Albanese.

The cabinet has additionally endorsed state and territory implementation plans under the Social Housing Accelerator, as well as a multi-year planning model for migration.

Community Housing Industry Association CEO, Wendy Hayhurst, has endorsed the package, citing the decision on inclusionary zoning as a great result for Australians.

“Inclusionary zoning promises to be a real policy breakthrough,” she says.

“It should ensure that new housing developments include a percentage of social and affordable homes, significantly expanding housing options for people on low and modest incomes. The particularly great thing about it is that it’s not a tax on development - the ‘cost’ is baked into the price paid for the land.

“If we are to get the supply we need, kinks in the planning process need to be ironed out to speed up the construction of social and affordable homes. Recognising that councils need resourcing to enable them to respond is also a positive element of this package.

“A more robust community consultation at the beginning of the planning process will create greater legitimacy and support to build the housing we so desperately need,” Emma Greenhalgh added.

The ‘Better Deal For Renters’ 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.

For more information regarding the package, click here.

Jarrod Reedie

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