Could one stroke of the pen unlock $10 billion in housing investment?
Stamp duty regulations that could be holding back superannuation funds from investing billions of dollars into property assets are under review by the Australian Securities and Investments Commission (ASIC).
In the midst of a housing crisis, a bureaucratic change to the way stamp duty is reported by superannuation funds could ultimately deliver 35,000 additional homes to Australians.
Regulatory watchdog ASIC is reviewing a stamp duty disclosure requirement that has raised concerns about how it is deterring the $4 trillion superannuation system from investing in the building of new housing.
ASIC Chair Joe Longo said the agency was responding to consultation at the recent investor roundtable convened by the Federal Government Treasurer, Jim Chalmers.
The innocuous-sounding regulation at the centre of what could be a seismic shift in Australia’s property market landscape is Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements, otherwise known as RG 97.
Changing RG 97 won’t cost the Budget a cent, but it can help deliver 35,000 additional new homes.
- Mike Zorbas, Property Council of Australia
Mr Longo said concerns have been raised that the disclosure impacts performance test results and discourages investment in property by superannuation funds.
“This is exactly the sort of actionable idea to address regulatory issues ASIC is open to testing,” Mr Longo said.
“If the review finds appropriate changes will deliver benefits without undermining disclosures, then ASIC will act.
“We want to ensure red tape isn’t unnecessarily holding back investments.
“A significant portion of Australia's $4 trillion superannuation system already invests in property assets, but we have heard there is appetite for more and this review will allow us to look at the way our regulations govern the calculation of fee-adjusted returns and encourage transparency and investment in our economy.”
Mr Longo said the review would also consider whether class order relief should be given to bring consistency to how internally and externally managed private credit arrangements are disclosed.
“A change like that could encourage internal management, meaning lower costs for superannuation members as well as continuing to support safe credit growth for business borrowers.”
The review will be led by ASIC and include industry representatives, and Treasury. It will report by 30 November.
Clare O’Neil, Minister for Housing, Homelessness and Cities, said the review was “hugely positive” but the Opposition housing spokesperson Andrew Bragg saw it very differently.
“Aussie super funds are investing massive amounts more building housing overseas than they are in housing Australians (which is) absolutely crazy,” she said.
Mr Bragg said the review was “deeply disturbing”.
“It seeks to prioritise the interests of big super funds in Australian housing over those of everyday Australians.
“The Australian people want to live in their own home, not a home owned by big super.”
Rental crisis highlights need for reform
The review comes at a time when Australia is contending with a housing crisis that shows little sign of easing.
A new KPMG report painted a bleak picture the same week that national vacancy rates tightened to 1.2 per cent, down from 1.3 per cent in both June 2025 and July 2024, according to the latest SQM Research data.
“We only forecast an average of 160,000 new dwellings per year over the next two years,” the KPMG report authors noted.
“This is 30 per cent below the national target of 240,000 homes annually needed to meet the National Housing Accord’s 1.2 million new homes target by mid-2029.”
This drop leaves just 37,863 rental vacancies nationwide, compared to 39,027 last month and 39,701 a year ago, signalling sustained pressure on tenants and limited relief in sight.
Louis Christopher, Managing Director, SQM Research, said vacancy rates remain tight across most capital cities, and this is continuing to place upward pressure on rents.
“While there are short-term fluctuations, particularly in Perth and Canberra, the broader trend is clear: rental affordability is deteriorating, especially in Sydney, Brisbane, and Hobart.
“Unless we see a meaningful uplift in rental supply, particularly in the inner and middle rings of our major cities, the market will remain challenging for tenants heading into spring.”
The necessary increase in housing supply was enough for Property Council of Australia’s Chief Executive, Mike Zorbas, to welcome changes that would lessen the potential impact of the RG97 reporting requirements.
“Currently, superannuation funds are being penalised for investing our money in Australian housing, offices, industrial parks and shopping malls – all vital to world-class, productive cities,” he said.
“Changing RG 97 won’t cost the Budget a cent, but it can help deliver 35,000 additional new homes for Australians over five years.
“We can hope too, that the government takes this mindset into improving the investment pathways for institutions wanting to co-invest with Australian companies through the FIRB (Foreign Investment Review Board) process, which has slowed down in recent years.”
Association of Superannuation Funds of Australia’s CEO, Mary Delahunty, was equally supportive of the proposed changes.
She said it is “exactly the kind of targeted reform” needed to unlock the super sector’s ability to “supercharge national productivity”.
“The superannuation sector has raised concerns about RG 97’s treatment of stamp duty since ASIC started developing the regime.
“Stamp duty is fundamentally different to other transaction costs covered by RG 97; it’s an unavoidable tax that cannot be reduced through efficient portfolio management or changing investment strategies.”
She added that treating stamp duty the same as management fees created misleading cost comparisons, making residential property investments appear less competitive.
“The current RG 97 unfairly penalises funds that invest directly in Australian residential property, as opposed to foreign residential property or indirectly through REITs (Real Estate Investment Trusts),” Ms Delahunty said.
“We expect a swift resolution, as potential solutions have been well-canvassed in previous consultations with ASIC.”
“The duty will still be still paid, but it won’t distort investment comparisons.”
