Throughout the past three or four years of government discussion but little action on the housing shortage and the rental crisis, the people who provide the homes that people rent in Australia have never been part of the discussion.

 

Many of our state and territory governments have held inquiries, summits and other talkfests inviting many of the usual suspects but landlords have never been invited to the table.

 

In one state, at least, that has now changed. The new state government in Queensland is showing increasing signs of recognising that investor owners of residential properties are a core part of the solution to the chronic rental shortage crisis.

 

The organisation that represents investment property owners, the Property Investment Professionals of Australia (or PIPA) recently held a business breakfast seminar in Brisbane and State Treasurer David Janetski accepted an invitation to attend and answer questions.

 

That in itself was a step forward for investors but also for tenants who rely on investors to provide rental homes – keeping in mind that well over 90% of all homes rented in Australia are provided by mum-and-dad investors, with government and big business providing very little.

 

Janetski pointed out that he and his colleagues were instrumental in preventing the previous Labor Government from implementing the nation’s most draconian and onerous land tax.

 

And having taken office as the new Queensland government had already abolished stamp duty for first home buyers building new homes.

 

He told the PIPA audience: “It’s important for the state to recognise the contribution that the property industry makes.”

 

He undertook to connect PIPA with Housing Minister Sam O’Connor to hear the industry’s concerns about the imbalance between the rights of tenants and the rights of the property owners.

 

Janetski also pointed out that the new Government had reinstated the Property Consultative Committee, which had been axed by the previous government. 

 

He said: “We are listening” and commented that the language from the previous government about investors and property managers was disrespectful.

 

PIPA president Nicola McDougall said: “That’s all we are asking for – a seat at the table.”

 

During the event’s Q & A, I pointed out to the State Treasurer that the average cost of the new house and land package was now approaching $1 million and over 40% of that was taxes fees and charges at the three levels of government. I asked what could be done about that.

 

He said he understood the concerns but he also had to balance the budget, against a background of a blowout in the cost of infrastructure projects, smaller GST revenue and reduced coal royalties. 

 

The inference is that, while sympathetic, the Queensland Government is unlikely to take any major measures to relieve the tax burdens that are preventing the housing industry from fixing the housing crisis.

 

But I would ask the Queensland Treasurer to consider this: what would happen if Queensland was the only state to eliminate a major chunk of the taxation component of building new homes? What if building a new home became $200,000 cheaper in Queensland than everywhere else?

 

What would that do to the state economy and to the Queensland State Budget? And what would it do to home ownership in the Sunshine State?