The Property Council and Master Builders Australia praised a $900 million federal fund announced by Treasurer Jim Chalmers, aimed at helping states and territories to increase housing supply, streamline approvals, and advance modular construction, while urging further planning reforms.
The Property Council initially proposed linking national housing targets to incentives in the 2000s. The council’s 2016 report, “Federal Incentives for Housing Supply”, authored by Professor Ian Harper, advocated for a National Competition Policy to increase housing supply and encourage state-level production within three years.
Property Council CEO Mike Zorbas (pictured above left) emphasised the need to reward efforts that boost housing supply.
“This housing crisis demands we pull every lever, and making our planning systems fit for purpose is the golden lever,” Zorbas said.
He said that efficient planning systems could add 1.3 million homes, comparing current systems to those before 2001.
Zorbas also called for attention to housing innovations, last-mile infrastructure, and reducing investment taxes that impact affordability, alongside the new federal funding focus on prefabricated and modular housing options.
“We need large-scale supply chains, substantial investment and regulatory reform to put industrialised construction on the front foot in Australia,” said.
Master Builders Australia supports the fund, which aims to alleviate pressure points in the building sector by providing incentives for states and territories to streamline approvals and modernise construction methods.
CEO Denita Wawn (pictured above right) highlighted ongoing declines in productivity.
“Productivity is more than a buzzword,” Wawn said. “When productivity is down, prices go up and our ability to build the homes and surrounding infrastructure communities need is slowed down.”
She acknowledged the treasurer’s responsiveness to the industry’s concerns.
Master Builders data revealed an increase in build times from nine months to 12.7 months over the past 15 years – a 40% rise.
Wawn stressed that supporting modular housing and modern construction methods through incentives could improve housing outlooks.
With Parliament resuming next week, Master Builders is pressing for action on pending housing legislation.
“Parliament also needs to pass bills ... to support the delivery of more housing for renters and help first home buyers get into the housing market,” Wawn said.
The proposed build-to-rent reforms, seen as a way to increase rental and middle-market housing supply, hinge on the right tax structures to take effect.
According to the Property Council, numerous factors currently limit housing capacity, including high construction costs, financing barriers, increasing demand from immigration, labor shortages, and regulatory delays. Ever-changing taxes, especially those affecting overseas investors, also impact market conditions and affordability.
Read the Property Council article here. For the Master Builders’ media release, visit its LinkedIn page:
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
