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O'Neil says she's not a YIMBY, but here's how she plans to help fix the housing shortage

O'Neil says she's not a YIMBY, but here's how she plans to help fix the housing shortage

Planning laws are placing the interests of anti-development residents above Australians who want affordable homes, federal Housing Minister Clare O'Neil has declared as the government faces falling short of its own promise to build 1.2 million homes by the end of the decade.
O'Neil said she expected Labor's $10 billion election promise to build 100,000 homes specifically for first home buyers would be fast-tracked through the statesto avoid the quicksand of planning rules. Prime Minister Anthony Albanese has handed her more responsibility to help fix the housing shortage.
O'Neil's second-term focus to overhaul planning schemes and drive up construction by slashing building regulations represents a shift from Labor's first-term agenda centred on social housing and its shared equity scheme.
'Planning laws at the state level are being used much too much to protect existing residents, and not enough to address the fact that we've got millions of people who are in housing distress,' O'Neil said in an interview with this masthead.
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'We need more housing of all kinds, and medium-density housing in the middle-ring suburbs is obviously going to be a really important part of the mix.'
Slow and rigid planning regulations are a key reason that most analysts estimate Labor is on track to fall more than 200,000 homes short of its 2022 budget target to build 1.2 million properties between 2024 and mid-2029.
A major problem is that planning laws are the domain of state and local governments. O'Neil pledged to use every tool at her disposal to shift the dial to reduce what she described as the 'thicket of regulation' builders faced.
'There is a lot of work that we're all going to need to do in the next three years, and I'd include the Commonwealth in that. None of this is an attack on the states. We've all been a part of this problem, and we all need to be a part of the solution,' she said.

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Super tax open to manipulation through property valuations: ASF Audits
Super tax open to manipulation through property valuations: ASF Audits

The Australian

time2 hours ago

  • The Australian

Super tax open to manipulation through property valuations: ASF Audits

You can now listen to The Australian's articles. Give us your feedback. You can now listen to The Australian's articles. Australia's biggest auditor of self-managed super funds, ASF Audits, has raised concerns about the manipulation of property and farm valuations in preparation for avoiding Labor's unrealised capital gains tax that would dent Treasury's estimates of revenue. Labor wants to introduce an unrealised gains tax on superannuation accounts of $3m or more without indexation while the Greens want the threshold to be $2m with indexation. The Australian Taxation Office is monitoring changes in behaviour of those who have such accounts, partly to check whether such changes might dampen the $2.3bn in revenue Jim Chalmers expects to collect in the first full year of implementation and $40bn over the next decade. As many as 1.8 million Australians could be caught by unrealised gains tax by the time they reach retirement. ASF Audits head of technical Shelley Banton, who oversees 50,000 self-managed super funds, said superannuants would be looking to avoid tax by securing valuations on properties, including farms, that helped them reduce the impact from the tax. 'As of June 2025, those who are above the $3m mark will want a valuation as high as possible, and then for the 2026 year, they will want a valuation as low as possible so that they're actually making an unrealised loss instead of an unrealised gain, and therefore they don't have to pay tax,' Ms Banton said. For those with accounts just below $3m as of June this year, 'they will want valuations which will obviously keep below $3m – that's where the valuations are going to be manipulated effectively, and we need to make sure that the methodology used in those valuations stacks up, so that we as auditors can actually sign off on our audit report'. Even tax returns for the 2024 financial year, where SMSFs can file late, may be incorporating such valuation manipulation. 'Maybe you don't want to start getting a higher valuation in 2025, maybe you want to start doing that in 2024, so then the valuation you get in 2025 doesn't look as suspect,' Ms Banton said. She added that, while there was always pressure on valuations around tax time, the unrealised capital gains tax 'amps up that pressure considerably … it's a big one'. Commercial property and farms will be in the firing line, especially where there have been no clear, comparable sales. Depending on what's possible with valuations, it might also lead some people to withdraw super, and 'if we've looked at what's happened to evidence in other countries when they've imposed this sort of tax regime, we've seen a lot of money not only exit the industry, but also exit the country', Ms Banton said. Auditor concerns have been raised about possible manipulation of property and farm valuations. Picture: Zoe Phillips One particular area of concern she raised was who would do the valuations. While licensed valuers have their code of conduct, some real estate agents may not. 'The valuations that probably won't be as difficult to manipulate are what's called 'kerbside valuations' that come from real estate agents,' she said. Australia's biggest valuations company, Herron Todd White, conducts about 550,000 property valuations every year. The company's managing director of commercial, agriculture and government valuations, Gavin Hulcombe, said valuations are going to be watched very closely. 'One of the big question marks will be whether they will be full valuations or desktop valuations,' he said. 'We think it should be full valuations because of the scrutiny they are going to get.' He said there had been substantial gains across property, particularly farms, which Labor had considered exempting. The latest annual valuation increases recorded by the Australian Property Institute show agriculture recorded the highest average annual return over two decades at 12.8 per cent, while industrial land returned 8.2 per cent, residential 7.7 per cent, and commercial 7.2 per cent. Mr Hulcombe is expecting a ramp-up in valuations after the new tax is introduced into the parliament. 'We have seen a big increase in inquiries, but not instructions yet, as most clients affected by this are waiting to see what the actual legislation looks like,' Mr Hulcombe said. Valuations can range from as low as $900 to more than $7000, depending on the size of the property, and some superannuants have asked who should bear the cost. Matthew Cranston Economics Correspondent Matthew Cranston is The Australian's Economics Correspondent based in Parliament House. He is an award winning journalist who previously covered the Trump and Biden administrations as White House Correspondent in Washington.

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