Harnessing new private investment via private tax rulings
CHPs are an income tax exempt charity and usually have Public Benevolent Institution status with some also having Deductible Gift Recipient standing. This means that they can receive various tax benefits and concessions for costs associated, if they cap their rents at 74.99% of market rent.
Other jurisdictions are building on the strengths of the community housing sector by transferring assets to facilitate new supply. For example, the NSW government has completed its largest social housing transfer with the transfer of over 2,000 homes and 4,000 tenants to a community provider. The NSW State Government aims to eventually transfer around 14,000 properties to nine registered community housing providers, saying this will provide upwards of $1 billion over the next 20 years to improve the experiences of people living in social housing.
It is time for the WA Government to utilise the strengths of the community housing sector through asset transfers in WA.