Essential workers in the Australian Capital Territory (ACT) could gain access to long-term affordable rentals if the government adopts a new digital accountability system. This initiative, proposed by the Property Council of Australia, seeks to link developers with tax concessions, thereby expediting housing projects critical to the community.
The proposed system, known as the Progressive Residential Affordability Development Solution (PRADS), aims to reform the territory’s lease variation charges. According to the Property Council, this reform would enable developers to create housing options that essential workers can lease at below-market rates. Ashlee Berry, executive director of the Property Council ACT, highlighted the potential of PRADS to ensure government oversight of compliance with affordability guidelines.
Chief Minister Andrew Barr has acknowledged the need for changes in the current system to facilitate the construction of diverse housing types across the capital. He emphasized that these changes are essential for increasing urban density and enhancing affordability and choice. Planning Minister Chris Steel recently instructed planners to prioritize incentives that encourage the development of more affordable and community housing.
The issue of lease variation charges will be a central topic at the upcoming Property Council’s housing summit, scheduled for October 26, 2023, at the University of Canberra. Key figures, including Chief Minister Barr, Minister Steel, and Housing Minister Yvette Berry, are expected to address the gathering, alongside Bill Shorten, vice-chancellor of the University of Canberra, and Adam Davey, chief executive of the Suburban Land Agency.
PRADS is designed to provide local councils and the government with a robust mechanism to monitor the delivery of affordable housing linked to tax concessions. The system will create a national digital register, allowing authorities to track compliance in real time. If any dwelling exceeds the agreed rental rates, the system will alert the appropriate authorities.
As the Property Council’s analysis indicates, essential workers in the ACT are increasingly struggling to find affordable housing. Even dual-income families often find themselves priced out of purchasing detached homes, underscoring the urgency of implementing effective solutions. Rob Pradolin, founder of Housing All Australians, emphasized that PRADS translates policy intent into tangible outcomes. He stated, “It provides a digital compliance system that ensures affordable housing commitments are delivered and maintained—giving government full visibility and the community lasting benefit.”
Berry reiterated the Property Council’s readiness to collaborate with the ACT government to pilot PRADS. She pointed out that the current lease variation charge model is hindering viable housing projects, calling for a framework that is fair and transparent. “PRADS can do exactly that—supporting moves toward more flexible lease variation charge arrangements by guaranteeing accountability and long-term affordability outcomes,” she said.
The conversation surrounding affordable housing is crucial for the ACT, where a growing number of essential workers are finding it increasingly difficult to secure suitable accommodation. The proposed PRADS initiative aims not only to address these challenges but also to foster a more sustainable and equitable housing landscape for all residents.
