Housing and Planning

PMAT understands the critical need for housing, including social and affordable housing. One of our founding concerns was that the Tasmanian Planning Scheme contains no provisions to encourage affordable or social housing.  In building resilient communities it must be recognised that housing and homelessness is a Human Rights issue.  

Instead of managing housing through Tasmania’s key planning document, the Tasmanian Planning Scheme, in 2018 the Tasmanian Government introduced a fast track land rezone process called the Housing Land Supply Orders (e.g. Housing Order Land Supply (Huntingfield)). Taking this approach compromises strategic planning and transparent decision making. For example, the State Government is the proponent and the assessor.  It has also proved ineffective in delivering new housing quickly. 

Taking zoning and planning assessments outside the Tasmanian Planning System risks an ad hoc approach to housing that makes an integrated approach more difficult.  This works against delivering quality housing outcomes.

What is Causing the Housing Problem?

Understanding the broad context is critical. The Tasmanian Government is arguing that the shortage in availability of social and affordable housing can be addressed– at least in part – through the Housing Land Supply Orders and Homes Tasmania. It is noted that the Homes Tasmania Act 2022 while aimed at alleviating the shortage of social and affordable housing has the potential for adverse impacts by bypassing the planning system and not taking a strategic approach.  It is important to look at the broader context of the housing problem.  

Some of the factors contributing to the shortage of affordable housing relate to policy settings controlled at the State level, but many others arise from long term national approaches to taxation, financial policy, investment and population growth.  The following are key contributors to the current ‘housing crisis’:

• Australia’s very high net immigration rate. It is noted too that Tasmania is pushing population growth targets (650,000 by 2050), but without any proper community consultation or consensus on what the State’s long-term population should be.  This is compounded by a lack of strategic planning by the State on where these extra people will live and the provision of infrastructure and services to support them.  
• The intent of planning instruments such as the draft Tasmanian Planning Policies is acknowledged but there are few implementation guidelines and they do not articulate clearly to the Regional Land Use Strategies or the State Planning Provisions.
• The State Government’s pursuit of record and growing tourism visitation numbers and consequent uncontrolled short stay accommodation development for tourism reduces long term rental supply and puts pressure on availability and prices. Local Government is constrained at present in responding to short stay accommodation concentrations locally that are contributing to high rents and low housing availability.  Using levies, rate loadings or the application of Local Provision Schedules are unlikely to be effective and Councils should be enabled to regulate through the State Planning Provisions (currently under review). 
• The raft of Commonwealth controlled policies which promote investment in properties but do little to address social and affordable housing needs.

  These include:

  • negative gearing and capital gains tax concessions on real estate;
  • foreign and interstate investment in real estate;
  • interest only home loans; and
  • inclusion of real estate as an option for self-managed superannuation.

Our current housing issues can be seen largely as a demand issue associated with population growth and the treatment of housing as a commodity with tax breaks, rather than a basic necessity of life.  It should not be regarded primarily as a land supply and planning issue.  These requirements are not a major factor in addressing the problem – two decades of planning reforms around Australia appear to have had little effect on solving the affordable housing problem.  The root causes must be addressed, as well as building more housing stock.   

It is acknowledged that more supply is required in the short term.   Nevertheless it must be recognised that the State Government has contributed to the current problems through programs that encourage migration to the State to support population targets that may be unsustainable.  This has happened without the investment in the infrastructure and services required and has had a detrimental impact on the lives and opportunities of many Tasmanians trying to access housing.   The current population targets – and associated programs – should be reviewed with the aim of reducing pressures on the housing market.

A national approach is also needed. Supply measures already announced need to be accompanied by changes to national policies which encourage real estate investment at the expense of affordable housing.