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Treasurer Jim Chalmers has unveiled plans for a roundtable with banks and super funds to boost investment in social and affordable housing.Credit:Brook Mitchell

Chalmers said withthe federal budget under increasing stress,boosting the amount of investment in key areas of need could not solely come from government and taxpayers.

He said in affordable housing,for example,there was scope for collaboration with private investors and institutions.

“Opportunities for profitable investment in national priorities exist. We just need to work together to make them happen,” Chalmers said.

“In the world we’re in,with growing social need and tightening fiscal constraints,there’s a call for all of us to develop more creative solutions.”

A parliamentary committee headed by Liberal MP Jason Falinski this year found that a “Gordian knot” of regulation,central planning,“officious” regulation and high taxes and charges imposed on new home buyers had helped make Australian property some of the most unaffordable in the developed world.

It backed higher housing density around transport hubs,payments to state governments to boost supply,and encouragement of the abolition of state-based stamp duty.

Separate research by the Prosper economic think tank found that land-banking by developers on the fringes of the nation’s largest cities hadcost home buyers $5.9 billion over the past decade.

Chalmers said that between November this year and September in 2023,the government would host “investor roundtables” with a focus on different areas of national priority investment. A roundtable will be held every three to four months,with the first to be on social and affordable housing.

He said the focus would be on finding opportunities that interest investors and boosting the level of investment.

The chief executives of the big four banks would be among 20 “core participants” in the roundtable,along with the heads of large super funds.

“Participants in the roundtables represent institutional investors,including super funds,with over $2 trillion in assets under management. All participants have the smarts,insight,and diverse range of experiences,to make these roundtables a success,” he said.

“We’ll be seeking an agreement with all these important players on a mix of short- and long-term actions to address the supply problems in Australia’s housing market:By managing planning processes and access to land,making sure affordable housing is energy efficient and underpinning all of this with more institutional investment in housing while delivering good returns to investors.”

Ahead of the November roundtable,Housing Minister Julie Collins and Chalmers will have discussions with the states,local councils and the construction sector about their ideas to deal with housing issues.

Chalmers said Australian business investment was at its lowest levels since the 1990s.

Finding ways to lift that investment,while dealing with national challenges,would boost the economy and the community.

“Investors are a big part of the solution here,and we need your help to turn this around. If we start to reverse this trend,and I’m confident we can,there is cause for optimism,” he said.

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