I have always dreamed of building a house for as long as I can remember, so last year I decided to turn my dream into a reality. I contacted Porter Davis, signed a contract, and secured my first deposit. However recently that dream had shattered. The company had collapsed, my house has been left unfinished and I have almost no chance of getting my deposit back.
Hello to all members of the parliament, My name is D... Kaur and I want to convince each of you why as leaders of Australia, you should focus more on providing more affordable housing and renting. Just like me, many other Australians have suffered from the collapse of construction companies, who have been liquidated, leaving houses unfinished, and increasing the cost of living. The rent prices have gone up more than the average rent market price, and renters are having to pay much more than necessary, the stage 3 tax cut is not benefiting anyone but the rich. Should we become a country that can provide roofs over everyone's heads, or make the housing crisis even worse?
Given the current crisis, it’s crucial that the government prioritizes affordable housing and renting options, for those who are struggling to make ends meet with small middle-class jobs that don’t provide enough income for a decent standard of living. Let me tell you just how hard it has been for so many Australians
According to the Australian Bureau of Statistics Residential Property, prices have risen 23.7% over the last twelve months from September of 2021 to December of 2022, The mean prices of Residential Dwellings also rose from $44,000 to $920,000. But what exactly is happening in the housing market to cause this? Well, this is due to the low supply of homes, migration increasing, and employment levels. There are not enough houses for people, and certainly no affordable prices. While Prices fall occasionally the interest rate has been increasing, which is still making it more expensive to buy a home.
According to the 2021 Rental Affordability of Index, 1 in 3 Australian households are experiencing rental stress, which means they spend more than 30% of their income on rent, meaning that these households are at the critical threshold for housing stress. As some people may not earn enough income, they have been having trouble finding affordable places to rent, and many are a notice away from eviction.
This must be stopped.
The Government needs to do something to help the customers that have been affected by the current issue regarding Porter Davis. One of Australia's largest construction companies has gone into administration and is currently in Liquidation. This has affected more than 700 homes leaving projects unfinished, with people now living in houses that are nowhere near complete. This is dangerous and unfair to customers like me.
Due to the rising costs of materials and labor, some construction companies have been forced to abandon projects, even after people have signed fixed contracts and paid their first deposit. These companies are struggling to keep up with inflation, which is making supplies more expensive and causing them to halt their work.
The Australian Securities and Investments Commission reveals that 2,117 Australian building companies went into liquidation in the year 2022-2023 financial year to June 18. Because there have been thousands of families left without a home and any insurance on their Deposit. The government should help these people, making sure that the hard-earned money is refunded as quickly as possible. To also try and help these construction companies so that they can continue their projects, even as inflation increases.
The stage 3 tax cut is not enough, Because it is not as beneficial as you may think, Because this decision will leave most workers worse off. This Federal budget announces that those with an income between $45,000 and $200,000 will be taxed at 30%.
But a small number of occupations that account for around 10% of all workers will get a nice tax cut. These include stock brokers, doctors, surgeons, engineers, lawyers, judges, and Members of Parliament. MPs in fact will get the maximum $9,075 tax cut. It is very clear that the lower and middle class will still be suffering even with this tax cut as prices increase, and wages stay the same. But those with higher paying jobs, are less likely to struggle and will see this tax cut as a benefit.
Now that I’ve listed the issues in the housing and renting crisis, the Collapse of Porter Davis, and the problem with the new Federal Budget. This is what the government should be doing instead:
Firstly, They should be putting more money into more public housing, because if fewer people are renting homes in the private market, this will free up properties for other renters, as there has been a shortage of rental supply. Public housing will also increase the supply of housing, putting downward pressure on house prices, and making it easier for those trying to buy their own home.
Secondly, There should be more rent assistance and tenant protections, so that renting can be a more secure choice. Those with low incomes may have more trouble finding a place to live, and this is where the government should step in.
Thirdly, Reform the tax rots that favor investors, Because banks are already making more than enough money. If inflation continues to increase, while wages stay the same, nothing will change, so that's why the focus is more on putting money into the housing crisis.
I hope that by informing you of these events, I have influenced you in some way to act, and provide better support to help people afford housing and rent, and help the construction industry that has collapsed. If you can make the right decision, you will be helping all those people that have been affected, finish building their homes, so that we may live comfortably.
