Aussie Council’s Living Cost Initiative Set to Save Residents $7000 from July 1

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As Australia’s housing crisis intensifies, numerous local councils are implementing new strategies to alleviate the burden on residents struggling to secure accommodation.

This week marked a notable milestone in the Australian property market, with the national median house price surpassing $1 million for the first time. Concurrently, renters are facing unprecedented rental costs in several regions of the country. In response, certain councils are permitting residents to set up caravans and movable tiny homes on private properties as a temporary housing solution for those in immediate need.

Shire of Manjimup President Donelle Buegge commented on this initiative, stating, “If something this small can make life a bit easier for someone, then I think it’s the least we can do,” highlighting the humanitarian approach behind the new measures.

In Noosa, a significant change will allow property owners to construct secondary dwellings, like granny flats, without incurring any infrastructure fees—a departure from the norm seen in most Australian councils, where such developments typically attract additional costs to support local infrastructure, including roads and community services.

Richard MacGillivray, the council’s director of development and regulation, announced that waiving these charges would save local applicants approximately $7,000 on average. This move aims to stimulate the creation of affordable, long-term housing solutions for singles, couples, and elderly residents, with a firm stipulation that these new dwellings be reserved for permanent residents and not available for short-term rentals.

MacGillivray clarified that current infrastructure charge notices issued prior to July 1 will still need to be fulfilled, although the changes will take effect in the new financial year.

This policy is aligned with a wider Australian trend advocating for increased housing supply. Experts in the property sector have long called for such measures, and Noosa’s decision could inspire other councils to adopt similar approaches. Recent changes implemented in various states complement this initiative: in Victoria, starting December 2023, homeowners will be able to erect a second dwelling of up to 60 square metres without a planning permit, while in Western Australia from April 2024, granny flats will be permissible on any residential block without approval, provided they meet local setback requirements.

Noosa Mayor Frank Wilkie expressed optimism that eliminating infrastructure charges would encourage residents to develop these supplementary accommodations. “We hope that by removing these charges, we will see more people build and offer them for rent,” he remarked.

Alongside infrastructure fee waivers, the Noosa council plans to do away with application fees for not-for-profit housing providers dedicated to affordable rental projects. Additionally, private developers may qualify for fee reductions if their plans include long-term affordable rental options.

Acknowledging the financial hurdles associated with constructing affordable housing, Wilkie stated, “Building affordable rental premises needs to stack up financially given the cost of land and construction, so these incentives are crucial.” He also mentioned forthcoming amendments to planning schemes that aim to boost the availability of smaller, cost-effective homes targeting key workers and older individuals—these initiatives are awaiting ministerial approval.

In summary, as councils like Noosa take proactive measures in response to Australia’s pervasive housing woes, the hope is that these strategies not only provide immediate relief but also pave the way for sustainable housing solutions in the long term.

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