We will invest $6 billion to build more than 12,000 new social and affordable homes, and make housing more accessible and affordable for Victorians.
Record investment in social and affordable housing
This year has shown us just how much ‘home’ matters.
It’s also thrown into sharp relief how far too many Victorians are still missing out on the safety and security that a home affords.
They’re pensioners. Victorians with a disability. Those struggling with mental health. Family violence victims. And single parent families.
Fundamentally, they’re Victorians – and they all deserve a place to call home.
It’s why this Budget delivers our State’s biggest ever investment in public, community and affordable housing.
Victoria’s Big Housing Build will transform the social and affordable housing system with $5.3 billion in funding to construct more than 12,000 new dwellings, including:
- 9,300 new social housing dwellings replacing 1,100 old housing units
- 2,900 new mainly affordable and low-cost homes in locations that are close to jobs and transport
The package also includes funding to accelerate the public housing capital upgrade program, including enhanced gas heater servicing. These works will improve the comfort of home for public housing tenants and support jobs.
Victoria’s Big Housing Build will be delivered through partnerships with the community housing sector, private sector construction, industry and other investors.
It is estimated that 10,000 jobs will be supported on average per year, over the next four years, as well as increasing economic activity across the State. A quarter of the total investment will be in regional areas.
This package builds on the $498 million provided through the Building Works package for maintenance and upgrades across public and community housing.
Making housing more affordable
Victoria’s Big Housing Build also includes $678 million to help unlock more affordable and accessible housing for Victorians.
Victorian Homebuyer Fund
The Victorian Homebuyer Fund provides $500 million to accelerate Victorians into home ownership. The Fund will contribute to the purchase price in exchange for a proportionate equity interest in the property. This reduces the size of the deposit required and will help Victorians afford their homes sooner. The fund will support the purchase of both established and newly built homes.
Land tax discount
To increase the supply of housing and create more options for renters by establishing the build-to-rent sector in Victoria, from 1 January 2022, Victoria’s Big Housing Build will provide a 50% land tax discount for eligible new developments until 2040. These developments will also be exempt from the Absentee Owner Surcharge over the same period. Investment in the build-to-rent sector will stimulate construction activity, create jobs and support Victoria’s economic recovery.
Land transfer duty waiver
Tax relief on stamp duty for residential property transactions of up to $1 million will also be provided. A waiver of 50% for new residential properties, and 25% for existing residential properties, will be available for purchases of up to $1 million for contracts entered into between the day after announcement and 30 June 2021.
First Home Owner Grant
The Government has also extended the $20,000 First Home Owner Grant for people buying or building a new home in regional Victoria to apply to contracts of sale entered up until 30 June 2021. This extension gives more Victorians the opportunity to live locally and enter the property market for the first time, while also supporting jobs in regional Victoria.
Unlocking construction activity
To unlock construction activity, Victoria’s Big Housing Build includes $52 million to implement the Commissioner for Better Regulation's planning reforms and to grow housing supply across the State through the Victorian Planning Authority programs Affordable by Supply and Streamlining for Growth.
Targeted planning system reforms
In addition, $59 million is provided for targeted planning system reforms. The reforms will have a critical role in unlocking private sector investment and supporting government initiatives, including the delivery of infrastructure, jobs and housing.
Reviewed 26 November 2020