the industry’s voice Housing Initiatives In an attempt to address rising house construction through a bond facility, prices in Sydney and Melbourne, the increased capital gains tax discounts Commonwealth and state for affordable housing and governments imposed additional encouraging the growth of managed taxes and charges on foreign investment trusts. investors purchasing new homes. The introduction of first home super Combined with regulator saver accounts, and minor changes to interventions and ongoing tightening the National Rental Affordability of lending conditions by the banks, Scheme were also supported. an inevitable slowdown in housing The budget forecast some less activity began to emerge in mid– positive moves with tighter 2017, particularly in multi–unit restrictions and additional taxes on projects. foreign and temporary residents, The 2017 federal budget proved to along with changes to negative be a positive one for housing, sowing gearing and capital gains tax for the seeds for programs that will Australians living overseas. emerge in 2018 and onwards. The During the year, HIA responded to a budget provided funding to establish broad range of Commonwealth and the National Housing Finance and state inquiries related to housing Investment Corporation, along with supply, non–conforming building $1 billion for the National Housing products, security of payment, Infrastructure Facility. These taxation reform, building regulations programs aim to speed up the and other regulatory reforms, delivery of critical infrastructure and delivering a strong industry voice and to support affordable housing a well–considered advocacy position. 4|HIA ANNUAL REPORT 2017