Victorian Budget 2024-25 – social and affordable housing update: keep calm and carry on

By Shaun Whittaker

The 2024-25 Victorian Budget revealed no major new announcements about new programs for the development of social and affordable housing projects. This was largely expected given the significant program announcements in the past two years around the Public Towers Redevelopment Program, Big Housing Build and Affordable Housing Investment Partnerships.

Capital investment will be lower than recent budgets, with just $200 million ear-marked for a new Regional Housing Round and $134 million for the Social Housing Accelerator Program. With new dwelling development cost prices rises, the return on these programs is also diminishing, although investment and support for modern construction methods would assist with this issue.

It should be noted, however, that the government has more than $2.5 billion committed in this financial year to existing social and affordable housing developments awarded in the past three years ­– more than any other state in recent times.

Accordingly, it’s a ‘carry on with what you have’ approach for the sector, although there were some ancillary announcements that will have some impacts.

Relevant announcements

• Improvements to public housing repairs and maintenance: investing $19 million to improve response times for repairs and maintenance for residents in public housing.
• Homelessness: investing $197 million to continue critical support for people experiencing or at risk of homelessness. This includes accommodation for people with complex needs, and crisis response services.
• Food relief: Funding of $1.1 million will provide food relief to support tenants living in high-rise social housing.
• Promotion of modern methods of construction: funding to promote modern methods of construction, such as modular and prefabricated builds.
• Tax exemption for social and emergency housing: introducing a standalone land tax exemption for land that is used to provide social and emergency housing. This also applies to charity-owned land where social and emergency housing is under development. The exemption will commence in the 2025 land tax year.
• Extending Victorian Homebuyer Fund: committing $700 million to support Victorians purchase their homes; however, this financial year will be the last year for the Victorian equity scheme as the transition to the Federal Government’s proposed Help to Buy scheme occurs.

This article was written with the assistance of Dana Rutner and Natalie Barbazza, Law Graduates.