Less words and more action to boost housing supply

AUSTRALIA’s housing priority now is “turning policy and funding into outcomes,” according to the Housing Industry Association.

The comments come after housing minister Clare O’Neil’s address to the National Press Club where she said Australia’s housing crisis was “the result of decades of system-wide failure”.

Her address reinforced the need for long-term, coordinated reform and reaffirmed the industry’s commitment to working with government.

Responding to the minister’s address, HIA managing director Jocelyn Martin said “the priority now is turning policy and funding into outcomes – more serviced land, faster approvals and more homes”.

“Coordinated action across all levels of government is now critical to turn ambition into outcomes.

“Acknowledging the housing shortfall stems from multiple, interlinked policy failures marks an important shift in the national debate.

“Australia’s housing crisis is not the result of a single policy failure – and it will not be solved by a single reform.”

Martin said planning systems, infrastructure delivery, tax settings, workforce shortages, productivity constraints and regulatory burden have combined over decades to restrict housing supply.

“Decades of underperformance from all levels of government have contributed to the current challenges and highlights the scale of reform required,” she said.

“Fragmented decision-making across federal, state and local governments has made it harder, slower and more expensive to build homes.

“Fixing this requires genuine coordination across governments and with the industry that delivers housing.

“Without alignment across planning, taxation and investment settings, infrastructure funding and delivery, supply will continue to fall short.”

HIA welcomes a move to bring together housing, planning and building ministers as a necessary step toward a more coordinated national approach.

“Bringing jurisdictions together is essential. For too long there has been disjointed policy settings across ministerial portfolios and too much finger pointing on who is to blame as opposed to a coordinated ownership of the problems and solutions,” Martin said. 

“The significant infrastructure investment by the Federal Government, including the additional $2 billion investment announced in the recent Budget, is welcomed but it now must be backed by stronger accountability by states and local governments to ensure it delivers build-ready land at speed.

“Funding should be tied to clear housing outcomes, with a ‘use it or lose it’ approach to ensure delivery at pace. Builders need to see this investment convert into serviced land, faster approvals and projects ready to commence.”

Martin said the additional $40 million investment in greater innovation is welcome support to create a greater uplift in use of prefabrication and modular construction.

“We see the willingness of builders to innovate and investigate new methods of construction but support is needed to make ideas feasible and improve productivity,” Martin added.

“The new inquiry to be led by the Productivity Commission into the rules and regulations that impact housing supply, land use, and the delivery of infrastructure will identify opportunities for reform.

“Better understanding will drive commitment and more action from everyone that plays a part to deliver Australian housing.”

While the significant efforts of the government to address barriers to supply are welcomed, HIA has warned changes to investor tax settings risk undermining broader supply-side reforms.

“At a time when governments are working to increase supply, policy settings must reinforce that objective – not work against it,” Martin said.

“Private investment is critical to delivering new housing. Any reduction in investor confidence risks fewer projects, delayed delivery and reduced supply.”

HIA reiterated that meeting housing targets depends on restoring project viability.

“Targets and ambition don’t build homes – feasible projects do. Addressing costs, delays and productivity is essential to ensure projects proceed and supply is sustained,” Martin said.

“Industry stands ready to work with all levels of government to remove barriers and deliver more homes for Australians.”