House of Representatives

Second Reading Speech

Ms COLLINS (Franklin - Minister for Housing, Minister for Homelessness and Minister for Small Business)

I move:

That this bill be now read a second time.

This bill implements the measures announced by the government in the 2023-24 Mid-Year Economic and Fiscal Outlook to triple foreign investment fees for established dwellings and to double vacancy fees.

The higher fees for established dwelling applications will encourage foreign buyers to invest in new housing developments.

This creates additional housing stock and supports economic growth.

The increased vacancy fees will encourage foreign investors to make their unoccupied properties available to renters, providing more homes for Australians who need them.

To facilitate these fee increases, schedule 1 to the bill will amend the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 to increase the maximum fee that can be imposed by the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 to $7 million, and will align the indexation process for all fee amounts in Australia's foreign investment framework.

Schedule 2 to the bill amends the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 to triple foreign investment application fees for established dwellings and to double vacancy fees for foreign investors who have purchased residential dwellings (new and established) since 9 May 2017.

Higher fees for the purchase of established homes, and increased penalties for those that leave properties vacant, will help ensure foreign investment in residential property is in our national interest.

These changes are part of the Albanese government's broad and ambitious agenda to improve housing affordability and supply.

This agenda includes an ambitious national target to build 1.2 million well-located homes over five years from 1 July 2024.

This target will be supported by $3 billion through the new homes bonus to states and territories that exceed the original target of building one million homes over five years from 1 July 2024 under the National Housing Accord.

It will also be supported by $500 million in the Housing Support program to help local and state governments kickstart housing supply by funding things like connecting essential services, amenities to support new housing development, or building planning capability.

The National Housing Accord also includes federal funding to deliver 10,000 affordable homes over five years, to be matched by up to another 10,000 by the states and territories.

The National Housing Accord is also supported by the $10 billion Housing Australia Future Fund, the single biggest investment in social and affordable rental housing by a federal government in more than a decade.

Applications are now open for this funding.

The Albanese government's $2 billion Social Housing Accelerator is helping to deliver around 4,000 new social homes across Australia. With this money already with the states and territories, they're getting work underway.

Up to $575 million has already been unlocked from the National Housing Infrastructure Facility, with homes under construction across the country.

We're also investing an additional $1 billion in the National Housing Infrastructure Facility this financial year to support yet more social homes.

In last year's budget, we committed an additional $2 billion in financing for more social and affordable rental homes through Housing Australia.

We're introducing new incentives to boost the supply of rental homes by changing arrangements for investments in build to rent accommodation.

We've increased the maximum rate of Commonwealth rent assistance by 15 per cent, the largest increase in more than 30 years, and this is already making a real difference, as the Consumer Price Index data shows.

We have improved and expanded the Home Guarantee Scheme, including with the introduction of a new regional first home buyer guarantee and by changing the eligibility of the scheme to help more Australians into home ownership.

People who were locked out under the former government can now get the support they need to get a home.

In fact, since the election of our government, more than 93,000 people across the country have been helped into home ownership through the new, improved scheme.

Last year, the government introduced legislation to assist even more Australians through Help to Buy, which will bring home ownership back into reach for 40,000 Australian households.

We've committed to a one-year extension of the National Housing and Homelessness Agreement, which will provide approximately $1.7 billion. This includes a $67.5 million boost to homelessness funding. National Cabinet has agreed to A Better Deal for Renters to harmonise and strengthen renters' rights across the country.

We're also working with states and territories on the development of a new national housing and homelessness plan.

Together, these initiatives represent the most significant housing reforms in a generation, after a decade of little action from the former government.

With the introduction of these measures today, we add to these reforms, to ensure more Australians have a safe, affordable place to call home.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.