Victorian Government Big Housing Build explained

As part of the 2020 State Budget, the Victorian Government has announced a large spending commitment of $5.3 billion to build new social housing. The program, called the Big Housing Build (BHB), will construct 12,000 new homes across metropolitan and regional Victoria over a four period, comprising 9,300 social housing homes and 2,900 new affordable and low-cost homes built to help low-to-moderate income earners. The BHB also includes replacing 1,100 old public housing units that are no longer fit for purpose.

The BHB package and funding is spread across several programs, including $1.38 billion for 4,200 new social housing dwellings that will be built through the Social Housing Growth Fund.

At least 25 per cent of the BHB funding is allocated to regional Victoria, and all the new homes will meet 7-star energy efficiency standards, making them more comfortable and economically efficient for tenants.

The BHB package and funding is spread across several programs, including $1.38 billion for 4,200 new social housing dwellings that will be built through the Social Housing Growth Fund. This operates in partnership with the community housing sector to procure and operate social housing dwellings either as stand-alone social housing projects, or as part of housing to be integrated with affordable housing or larger private developments.

Other separately funded components of the BHB include encouraging the development of a build-to-rent (BTR) sector with a 50 per cent land tax discount for new developments (available from 2022 until 2040)...

In addition, the Victorian Homebuyer Fund, a separately funded part of the BHB, will provide $500 million to help households buy a home. As a co-purchaser of the property through a shared equity arrangement with the household, the Victorian Homebuyer Fund helps reduce the size of the deposit required, helping households to buy sooner than they otherwise would. When households buy out the Government equity or sell the property, the Government recovers its investment and is able to contribute the money to another buyer in the future.

Other separately funded components of the BHB include encouraging the development of a build-to-rent (BTR) sector with a 50 per cent land tax discount for new developments (available from 2022 until 2040), and a waiver of up to 50 per cent of land transfer duty for households buying a new residential property with a dutiable value of up to $1 million (and a 25 per cent reduction for households buying an established property). The transfer duty waiver is in response to COVID-19 and intends to stimulate both housing construction and other services and goods people need when moving to a newly bought home.

The BHB includes funding for planning reforms that aim to improve housing supply. The Victorian Government believes the reforms ‘will have a critical role in unlocking private sector investment' and supporting Government initiatives, including the delivery of infrastructure, jobs and housing’. In total, the programs gathered under the BHB banner have a cost of around $6 billion.