24/09/2026
An important joint statement from (REIA)
For me, the broader observation extends beyond discretionary trusts.
Housing affordability is fundamentally a question of supply, confidence, feasibility, employment and choice.
Australia needs enough new housing to meet population growth and migration, while maintaining confidence and flexibility for Australians to buy, sell, invest in and lease existing homes.
We should keep examining the cumulative impact of taxation, rates, levies, regulation and transaction costs across local, state and federal government.
Every added cost affects feasibility - whether developing new housing, buying an established home, investing in rental accommodation, selling and relocating, or simply deciding whether a transaction is affordable.
In my experience, confidence matters.
Developers need confidence that projects remain viable. Buyers need confidence in borrowing and serviceability. Owners need confidence that they can transact without excessive friction. Investors need confidence that supplying rental housing remains sustainable.
There is also an important employment ripple effect attached to housing.
New construction and established property transactions support a broad ecosystem of builders, trades, planners, legal and finance professionals, estate agents, buyers advocates, property managers, valuers, inspectors, removalists, maintenance providers and many other services.
When transaction volumes, development activity and investment confidence fall, the impact extends beyond property prices. It affects employment certainty, business pipelines, household income and ultimately loan serviceability.
This matters even in a softening market. Lower prices do not automatically create affordability if households are also facing reduced hours, employment uncertainty, higher living costs or weaker income confidence.
Every household has an adjusted financial ceiling. Without sustained employment, reliable income and confidence in future workflow, serviceability becomes harder regardless of whether property prices have eased.
Housing policy therefore needs to consider the whole ecosystem - planning, infrastructure, construction, employment, finance, taxation, transaction costs, rental supply and the efficient use of existing housing stock.
Continually increasing the financial burden on housing does not, by itself, create affordability. If those settings reduce investment, development feasibility, employment or transaction activity, they can instead contribute to constrained supply, reduced choice and greater household pressure.
A sustainable housing system should encourage supply, employment, mobility, investment, competition and confidence, while maintaining appropriate consumer protection and accountability.
Real Estate Institute of Australia
Housing Industry Association (HIA)
Urban Development Institute of Australia (UDIA) Victoria
Master Builders Australia
Property Council of Australia
🏗️ New polling delivers a stark warning for Australia’s housing pipeline
New Accent Research polling of almost 1,200 Australian small and medium business owners has revealed concerning findings about the proposed federal discretionary trust changes.
The research was jointly commissioned by the Real Estate Institute of Australia (REIA), Housing Industry Association (HIA), Master Builders Australia (MBA), Property Council of Australia (PCA), and Urban Development Institute of Australia (UDIA).
The findings:
🏘️ More than 60% of small-to-medium residential and commercial property developers expect the proposed discretionary trust tax changes to affect project timing or viability.
🚫 Among affected developers, 37% expect one or more projects to be cancelled.
📉 Among businesses using discretionary trusts, 77% reported reduced confidence.
⚠️ Just 3% of business owners said the changes had increased confidence in their industry’s outlook.
Projects delayed or cancelled today mean fewer homes for buyers and renters tomorrow. At a time of severe housing shortages, government policy must support confidence, investment, and housing delivery.
🔗 Read the joint media release: https://www.reia.com.au/industry-news/federal-discretionary-trust-changes-smash-property-industry
