New Build Debate Grows

Australia’s housing industry is renewing calls for a broader definition of “new builds” under proposed tax changes, arguing it should include granny flats, knockdown rebuilds, dual occupancies and major renovations.

The push follows Treasurer Jim Chalmers’ decision to extend consultation on key parts of the legislation, including how new housing investment exemptions will be defined.

Master Builders Australia said the changes still do not go far enough to address the national housing shortage, warning the reforms could reduce new supply at a time when more homes are urgently needed.

The Housing Industry Association welcomed the opportunity for consultation and said broader definitions could help unlock more housing options.

The Property Council of Australia also raised concerns about investment confidence, pointing to high construction, labour and capital costs.

The debate highlights the importance of tax settings that encourage, rather than restrict, housing supply.