Western Australia has a housing crisis, and it continues to make news headlines.
In April, the ABC reported that the state’s rental vacancy rate remains at around 0.7 per cent instead of the target 2 to 3 per cent — and that the median time to sell a home is now at a breakneck eight days.
Just this week, the Bankwest Curtin Economics Centre released its ‘Building the Dream’ report and the news wasn’t much better.
In 2015, the WA building industry delivered 32,000 new dwellings, whereas today they are struggling to provide a minimum 20,000 homes just to keep up with the state’s population growth.
While the major parties continue to talk a good game and deliver precious little for the people of Western Australia, AC wants to see radical reforms in the housing sector that put families and their needs to the fore.
More statistics from this week’s report paint a grim picture:
- Since early 2020, WA dwelling values have risen by around 62 per cent while rents are now pushing $700 per week, up from around $400 at the end of 2020.
- In 2022-23, less than 15,000 house builds began, compared with over 32,000 in 2014.
- “The precipitous growth in housing demand in WA has substantially depleted the available housing stock either for rent or purchase.”
- The report also highlights “declining housing affordability as individuals are forced into shared households or are unable to afford to leave the parental home.”
Both the The Sydney Morning Herald and The West Australian ran stories on the ‘Building the Dream’ report, highlighting its discussion about repurposing the state’s spare bedrooms. In the words of Kim Macdonald, Senior Reporter for The West:
WA is in the sad paradox of being in the grips of a housing crisis, despite having 1.45 million spare bedrooms across the State…
[M]ore than half of WA’s householders (53.6 per cent) live in dwellings with two or more spare bedrooms, which is higher than the 44.5 per cent national average… All in all, the statistics indicate fewer than a third of all WA homes are the right size for its residents.
Between the journalists, the authors of the report, and every fair-minded Western Australian, there is widespread agreement that government intervention is needed to solve this crisis. Among the various solutions are stamp duty concessions to help seniors downsize, more taxpayer investment in cheap, innovative construction methods, and government incentives to increase housing density in inner and middle-ring suburbs.
AC is not opposed to these policy ideas, but we believe far more is needed.
Rather than just stamp duty concessions, the entire stamp duty scheme deserves to be reconsidered.
Stamp duty originated in 19th-century colonial times, when British officials imposed modest fixed fees on legal documents like title deeds. Back in the day, buyers even received a physical stamp for their payment.
Not anymore. Now most Australians are forced to pay tens of thousands of dollars in stamp duty fees if they want to own their own home. Incremental price increases and a shift from fixed fees to a percentage-based tax has meant governments have become addicted to the stamp duty revenue stream. But it’s hardly fair on working Australians who now find themselves priced out of the market.
In line with our call for smaller, more efficient government, AC proposes a radical reduction in stamp duty fees to take upward pressure off of the housing market, and to make owning a home more achievable for everyday Aussies.
We also a support an increase in the foreign buyer surcharge, which currently sits at just 7 per cent. Why should wealthy investors from other countries have the privilege of owning our state’s housing stock when it is still out of reach for so many of our own people?
In general, we are reluctant to make Western Australians to move into smaller quarters. Many spare bedrooms are used as home offices, playrooms, guest bedrooms and for countless other purposes. Rather than asking people to dream small, we should be making it easier for them to create and raise healthy families with all the space they need.
Finally, we need to take a closer look at the real estate portfolios of Australian politicians.
According to 2021 Census data, 86 per cent of federal politicians owned at least one residential property, while most owned two. By contrast, just 67 per cent of average Australians owned a house and only 15 per cent owned a second.
Meanwhile, an MP’s base salary of $217,060 was well above the average Australian salary of about $71,600. And that’s without considering all the additional perks and benefits politicians receive, including a $299 per night travel allowance for trips to the ACT, even if they stay in their own Canberra property.
In short, an appreciating housing market represents increased wealth to our politicians but increased poverty to a growing number of Australians. Why would our political leaders solve a crisis that is materially benefiting them?
We need solutions that change the incentive structure, beginning with a review of politicians’ salaries and expense allowances, as well as tougher conflict of interest laws.
We can’t let everyday Australians suffer while our leaders feather their nests. We need to help our families and those struggling with the cost of living.
Vote 1 AC and let’s get the job done.
