The Senate has initiated a new inquiry to examine the impact of financial regulation on home ownership in Australia. This inquiry, conducted by the Senate Economics References Committee, will explore how current lending regulations can be adjusted to make homeownership more accessible, particularly for first-time buyers.
The inquiry will involve consultations with Australian borrowers, the market, and the Australian Prudential Regulation Authority (APRA). It will review the current financial regulatory framework to determine whether it effectively prioritises home ownership. Key areas of focus include:
- APRA’s prudential standards.
- The Corporations Act 2001 provisions for lending.
- The role of corporate and institutional funds in housing.
- The effectiveness of current monitoring mechanisms for investment in residential property.
Additionally, the inquiry will assess the tax treatment of residential property, its impact on demand and house prices, and the adequacy of metrics for monitoring housing supply relative to population growth.
Senator Andrew Bragg, the shadow assistant minister for home ownership, is leading the inquiry. He emphasised that the inquiry is about regulations and institutions and supporting individuals, particularly first-home buyers. Bragg highlighted the need for more options to favour first-home buyers and indicated that the committee would investigate lending practices, potential deregulation, and barriers to first-home finance, such as HECS debts. He expressed concern that the Australian Dream of home ownership is slipping away from younger generations due to stringent regulations and financial barriers.
The inquiry will also consider whether the current 3% buffer APRA imposes on lending practices is overly cautious. Bragg pointed out that HECS debts are a significant factor in preventing younger Australians from accessing mortgages, and the committee will explore policy options to alleviate this burden, such as deferring HECS repayments.
The inquiry is open for submissions until 26 September, with a final report expected by 5 December.
In parallel, housing affordability and adequate housing supply issues have gained significant political attention. ACT independent senator David Pocock and member for North Sydney Kylea Tink have introduced a private member’s bill to recognise adequate housing as a human right for all Australians. This bill would mandate the federal government to develop and maintain a 10-year National Housing and Homelessness Plan. This comprehensive strategy could significantly improve housing supply and affordability and end homelessness.
Senator Pocock and Tink argue that the current housing crisis is not a problem that can wait for the next political cycle. They emphasise that safe and secure housing is a fundamental human right and essential for the well-being of individuals, families, and communities. Immediate and sustained action is needed to address Australia’s housing challenges.
The Australian Human Rights Commission has supported the bill, aligning with the broader call for a comprehensive and sustained approach to addressing Australia’s housing challenges.
