NEW HOUSING POLICY AIMS TO FIX THE ‘MISSING MIDDLE’ IN LABOR’S BUDGET

Leanne Castley MLA

Leader of the ACT Liberals

Peter Cain MLA

Shadow Minister for Planning and Housing Services

Media Release

20 May 2025

Canberra Liberals leader Leanne Castley MLA has criticised Labor’s new housing policy, saying it fails to deliver the key changes that are necessary to deliver accessible, affordable homes for Canberrans.

“Labor says this policy is about fixing the missing middle in housing but it’s really about fixing the missing middle in their budget,” said Ms Castley.

“If Labor was serious about housing affordability, they would start with reforming the Lease Variation Charge, improving the approvals pathway, and accelerating new land release.”

The reforms mean the value of residential land will significantly increase, driving household rates substantially higher – whether or not any development occurs on a homeowner’s property.

 The revenue grab is driven by Labor’s $15 billion debt, which is forecast to grow to $19.8 billion in the next two years. The interest bill on this debt now accounts for more than $1 in every $5 the ACT Government raises in rates and taxes.

“Labor’s plan puts tax revenue at the centre of housing policy, when it should be centred around our community and their needs,” said Ms Castley.

“The key worry amongst Canberra’s young people is housing affordability. Labor is ignoring the key reforms we need to support their aspiration for home ownership.”

Labor’s refusal to release sufficient land for new suburbs, and it’s support for an urban boundary limiting Canberra’s growth, mean that increased densification is the only way the ACT can accommodate a larger population. This can only be achieved by overriding the rights of Canberrans to participate in decisions and plans about their local communities.

“Last year, Labor announced a policy to deliver 30,000 new homes by 2030. That goal is already so far behind schedule that we don’t believe it can be achieved,” said Ms Castley.

“Time and again, we see policies and plans from this Government that they fail to realise. Labor loves a good announcement but Canberrans deserve a government that can follow through and deliver for the community.”

Labor’s housing plans will limit the ability of young people to purchase homes of their own. Our research tells us many young people in Canberra want houses with multiple bedrooms and backyards where they can raise families and be part of strong local communities – but Labor’s policies mean they feel they have to move outside the ACT to achieve these dreams.

“Canberrans deserve choice about what sort of dwelling they want to live in. Restricting their choices does nothing to help our young people realise their aspirations of home ownership.”

“The ACT is in the midst of a housing affordability and supply crisis, in no small part thanks to ACT Labor’s long-standing and restrictive zoning and land release policies,” said Shadow Minister for Planning and Housing, Peter Cain MLA.

“While cautiously optimistic about these rezoning plans, these proposed changes are not a silver bullet to addressing the ACT’s ongoing housing affordability and supply issues. Missing middle housing could certainly be one avenue, but we also need appropriate action on improving development approvals, new land releases and the impact of LVC.”

“The government needs to prioritise both the garden city character of our suburbs and enhance Canberra as the Bush Capital of this wonderful country. Finally, the government needs to ensure that community consultation is genuine and comprehensive to ensure planning outcomes produce the type of city that Canberrans want and deserve.” Mr Cain concluded.