A property expert has called on the federal government to adopt a straightforward tax incentive that could help release thousands of underused homes back onto the market – potentially easing Australia’s housing supply crisis.
Bob Morton (pictured), co-founder and director of The Property Clearance Company, said allowing families to claim professional clearance costs as a tax deduction when selling a property after a bereavement or move into aged care could accelerate listings and relieve pressure on the housing market.
“By allowing families to claim the cost of professional clearance services as a tax deduction, the government would give them a clear incentive to move quickly, efficiently and with less emotional strain,” Morton told news.com.au.
His comments come as Reserve Bank Governor Michele Bullock warned that Australia’s housing shortage remains a “structural deficit of supply,” noting that demand continues to outstrip available housing stock and push both property prices and rents higher. Bullock told a Senate hearing that while governments are working to improve supply, planning and construction constraints mean shortages could persist through 2026.
Morton said families often face long delays when preparing a deceased estate or family home for sale, with the process of sorting possessions, repairs and maintenance stretching over several months.
“It’s the fastest, most respectful way to do it,” he said. “Families can move forward without being overwhelmed, disputes are avoided and valuable possessions aren’t accidentally thrown away. A tax deduction would encourage more families to take this path, creating a win-win: homes are brought to market sooner and the process is done in an orderly, transparent way.”
Morton said clearance professionals can prepare properties for sale in weeks rather than months, ensuring that homes return to market faster and in better condition – an outcome that would benefit both buyers and the broader housing supply.
With demand for housing continuing to outstrip supply, Morton said the measure could make a meaningful difference by helping free up thousands of idle homes across Australia.
“We know there are thousands of homes sitting idle because families are paralysed by the enormity of the task,” he said. “A tax deduction could unlock those homes faster and in better condition, making them available to the next generation of Australian families.”
Bullock’s warning that the nation’s housing imbalance is “driven by supply and demand” underscores the urgency of measures that can bring more properties to market sooner – even small policy shifts that make the sales process easier for families.
The proposed deduction would only apply if the property is listed for sale, ensuring the incentive directly supports turnover rather than long-term rentals or retained properties.
“Naturally the tax deduction would only come into play if the property is sold. If the family decides to keep the property or rent it, the deduction doesn’t apply. So, the incentive is to get it ready for sale as quickly as possible,” Morton said.
Morton confirmed he has already reached out to the prime minister’s office, describing the idea as a “simple, easy thing to do” that could have an outsized impact on the nation’s housing challenge.
“Solving the housing crisis isn’t going to take one policy approach, it will take many and a tax deduction to incentivise families to clear, prepare and put their family home on the market for another family to buy is a great idea,” he added.
Bullock has similarly urged governments to “get supply of housing moving,” saying progress requires coordination across planning, construction, and investment. Her remarks highlight the limits of monetary policy in tackling what she called a long-running structural issue in housing supply.
For mortgage brokers, the proposal highlights a potential new source of activity in the estate and downsizer markets, where a streamlined sales process could increase housing turnover and lending opportunities.
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