Supporting New Housing

Supporting New Housing

Planning for today and the future

The Government is committed to making housing more affordable and increasing the supply of new housing. The Commonwealth is making sure its surplus land holdings are put to better use, including for the development of residential housing.

Unlocking Commonwealth Land

Sale of Commonwealth Land - Maribyrnong

The Australian Government, working with the Victorian Government and the Maribyrnong City Council, are making 127 hectares of surplus Commonwealth land available for housing development less than 10 kilometres from the Melbourne CBD. This unique development opportunity will deliver housing, including social and affordable housing, infrastructure and community facilities for the local Maribyrnong community and the people of Melbourne.

Australian Government Property Register

On 1 December 2017, the Government published a registry of the Commonwealth's land holdings online, including a map of their locations. This registry creates opportunities for stakeholders and the public to propose better use of Commonwealth land – whether to deliver more houses, community amenities, key services or employment hubs.

Housing Infrastructure

National Housing Infrastructure Facility

The $1 billion National Housing Infrastructure Facility will help to finance critical housing related infrastructure, with the aim of unlocking and accelerating new housing supply, particularly affordable housing.

Western Sydney City Deal

The Australian and NSW Governments, together with eight local governments of Western Sydney, signed the Western Sydney City Deal on 4 March 2018. The City Deal is a 20 year agreement between the three levels of government to deliver a once-in-a-generation transformation of Sydney's outer west – creating the 'Western Parkland City'.

Foreign Investment

The Government is introducing stronger rules for foreign investors who own Australian housing.

Annual Vacancy Fee

An annual fee will be levied on foreign owners of residential real estate where the property is not occupied or genuinely available on the rental market for at least six months in a 12 month period. The fee is intended to encourage foreign owners of residential real estate to make their properties available for rent where they are not occupied as a residence, and so increase the number of properties available for Australians to live in.

Capital Gains Tax changes for foreign residents

The Government is introducing reforms to reduce the avoidance of capital gains tax in Australia by foreign residents. This will send a clear message to foreign residents that if they wish to acquire Australian property, they will have to comply with our stringent capital gains tax rules.

Foreign ownership cap

The Government is ensuring that dwellings in new developments in Australia are kept available for Australians by introducing a 50 per cent cap on foreign ownership in new developments - applied through conditions imposed on New Dwelling Exemption Certificates. The 50 per cent cap builds on the existing rules to ensure Australian buyers have access to a greater pool of homes to buy in these new developments.

Domestic Investment

The Government is better targeting tax deductions relating to residential investment properties.

Disallowing deduction of travel expenses

From 1 July 2017, travel deductions for individual investors with residential investment properties, including travel costs associated with inspecting and maintaining properties, are no longer deductible.

Limit plant and equipment depreciation deductions

From 1 July 2017, plant and equipment depreciation deductions for investors in residential real estate properties are limited to assets not previously used. These changes apply on a prospective basis from Budget night, 9 May 2017, with existing investments grandfathered.