Mackay council votes to increase social housing concession to 100%

Mackay’s council has taken a major step forward to address the region’s punishing housing market, voting to offer developers a massive new discount.

Mackay council is trying to encourage developers to build more social housing through big discounts. Picture: Zizi Averill

Mackay’s punishing housing market received a substantial boost in support this week with the council voting to offer developers a 100 per cent discount on infrastructure charges for new social housing stock.

The concession will make it cheaper for builders to put in more affordable housing and arrives as the region struggles through a rental vacancy rate that is consistently below 1 per cent.

Before the April 12 meeting, the concession had been capped at 50 per cent for a maximum value of $500,000.

Councillors voted to lift it to 100 per cent for a maximum value of $500,000.

Master Builders Queensland regional manager Malcolm Hull said the move would “absolutely” incentivise more development in the next three years.

Master Builders Queensland regional manager Malcolm Hull has applauded the council’s move to dramatically expand its concession for social housing.

“I think it is superb,” he said.

“We very much applaud the council for this stance.

“I’m not aware of any other region that is offering 100 per cent.”

Real Estate Institute of Queensland CEO Antonia Mercorella said the council had set an example for others to follow.

“A 100 per cent concession is outstanding news,” she said.

“It is great to see local government playing an active role, rather than relying solely on the initiatives for social and affordable housing available at a state and federal level.

“Right across Queensland, we need to be minimising the obstacles that can get in the way of new supply coming to market and even actively incentivising it and that is where local governments can play a critical role.

Real Estate Institute of Queensland CEO Antonia Mercorella has applauded the council’s move.

“With many regional communities facing rising levels of homelessness, the REIQ hopes Mackay’s forward-thinking approach will compel other councils to follow suit.”

The dramatic increase was part of a broader vote to amend the council’s development incentives policy, designed to attract private investment into the region.

Councillor Martin Bella has fumed about Mackay’s escalating homelessness crisis and spoke in favour of the increased concession, but added its benefit would not likely be seen for at least two years.

“If anyone goes out there and says this is going to cure our problem with homelessness and lack of accommodation, they are being completely disingenuous,” he said.

“It is not going to put one roof over one head for at least two years.”

Councillor Allison Jones voted against the increase, the only councillor to do so.

“All of these fee waivers are at the expense of ratepayers,” she said.

Councillor Martin Bella voted for the concession increase but said more needed to be done to tackle Mackay’s housing crisis. Picture: Duncan Evans

“We’re not in a downturn anymore.”

The meeting’s agenda document suggests the proposed increase flowed from an apparent failure to attract any significant investment in alternative housing in the past year, with only three applications for multi-dwellings approved and another five applicants expressing interest.

“This indicates that even though there has been an increase in demand for housing, the market is still predominantly developing traditional residential housing,” the document states.

“While this type of housing is necessary, alternative options are also needed to increase the diversity and mix of housing.”

In crafting the new policy, the council sought feedback from a range of actors in the construction and business space including Master Builders Mackay, the Housing Industry Association, Real Estate Institute of Queensland and the Mackay Chamber of Commerce.

WHAT OTHER DISCOUNTS IS THE COUNCIL OFFERING?

The vote means a range of other incentives are also now in play.

Concessions for child care centres have increased from 75 per cent to 100 per cent for not-for-profit groups and 50 per cent to 75 per cent for all other proponents.

There are also discounts on initial application fees for food licences and food waste approvals.

On April 12 the council approved a tender for a trail head at Finch Hatton, part of the $27m Pioneer Valley Mountain Bike Trail.

The meeting also delivered a momentous step forward for tourism infrastructure, with councillors voting unanimously to approve three tenders for Stage 1 of the $27m Pioneer Valley Mountain Bike Trail.

The tenders will deliver 13.5km of trails and a trail head pump track at Finch Hatton. The first step in a 100km network designed to make the region a national and international sports tourism draw.

The tenders were awarded to World Trail Pty Ltd, JMAC Constructions and TKK Service Pty Ltd.

Mackay Mayor Greg Williamson called the tender approval a “momentous occasion” at the meeting.

“It has been a long journey,” he said.