Under the proposal, the Australian Government would act as a public property developer, building homes and either selling them or retaining them to be rented out.

• 70% of the homes built by the public developer would be available to rent:
  – Rent would be capped at 25% of the individual household income or 70% market rent, whichever is lower
  – A quota of 20% of homes available to rent would be allocated to the lowest income quintile
• 30% of the homes built by the public developer per year would be sold to owner-occupiers at 5% over the cost of procurement, only eligible to those with no interest in real estate:
  – Properties could only be resold back to the government at the cost price + Consumer Price Index (CPI)

State and territory and local taxes, such as stamp duty or land tax, would be waived.

The profile of dwellings would be detached housing 20%, townhouses 20%, medium density/low rise 50% and high rise 10%. The locations of dwellings would be as per the share of needed growth reported in Table 11 of Social housing as infrastructure: an investment pathway by the Australian Housing and Urban Research Institute (the AHURI report).

The timeline for the delivery of homes by the public property developer would be 360,000 homes over the 5 years from 1 July 2025, and then 50,000 homes per year for the following 5 years, with market construction costs for each home.

The public property developer would operate under a new Commonwealth Department of Sustainable Cities, Development and Housing.

The proposal would be ongoing and start on 1 July 2025.