One more step in Victoria but many more are needed

THE major parties have identified housing as a key battlefront ahead of the Election but a peak advocacy body says they have not gone far enough.

Housing Industry Association said both major parties have responded to growing pressure to address the state's housing shortage, announcing a range of measures that align with priorities outlined in HIA's policy agenda.

However, Keith Ryan, HIA executive director Victoria, warned that while it was encouraging to see housing emerging as a central election issue, there are many more issues to addressed.

"When HIA released its election agenda, we called on all parties to focus on the practical reforms needed to increase housing supply, improve affordability and support Victoria's residential building industry," Ryan said.

"Over the course of this campaign, we've seen a number of announcements that align with those priorities."

Ryan said HIA welcomed the joint Commonwealth and Victorian Government commitment to invest almost $3 billion in enabling infrastructure to support more than 66,000 new homes across Victoria.

"HIA has consistently argued that unlocking land and delivering the infrastructure needed to support new communities is one of the most effective ways governments can boost housing supply," he said.

“It is essential that the importance of regional Victoria is recognised, so we welcome the Liberal-National Coalition guarantee that 25 per cent of all new Victorian Government infrastructure expenditure will be directly allocated to regional areas.”

Ryan also welcomed commitments from the Coalition to establish 10 technical colleges across Victoria to strengthen pathways into the building and construction industry.

"One of HIA's key election priorities has been growing the construction workforce and creating new pathways into trades," Ryan said.

"Victoria simply cannot meet its housing ambitions without more apprentices, more tradies and more young people choosing a career in construction.

"The Coalition's technical colleges proposal directly addresses that challenge.

“Both the Coalition and the Labor Party have also made announcements providing some financial support for employers of apprentices to cover the cost of training.“

Ryan said signs that both major parties have recognised the need for property tax reform were also encouraging.

"HIA has spent years highlighting the impact Victoria's tax settings are having on housing affordability and investment," he said.

"Whether it is proposals to increase land tax thresholds, commitments to review housing taxes or measures to reduce barriers to investment, it is clear that our message is finally being heard."

Ryan said HIA had also welcomed commitments supporting modern methods of construction, as well as government's willingness to delay implementation of significant contract reforms to provide industry with additional time to prepare.

"These outcomes demonstrate that constructive engagement between government and industry can deliver better policy outcomes and better housing outcomes."

However, despite the progress made during the campaign, Ryan said substantial elements of HIA's election agenda remained unaddressed.

"We welcome the commitments announced so far, but the job is far from finished," he said.

"Victoria is still building well below the number of homes needed each year and housing affordability remains a major challenge for families across the state."

HIA is calling on all parties to strengthen their housing platforms over the final month of the campaign by committing to:

• In first 100 days tasking a revamped Better Regulation Victoria to initiate an inquiry into red tape and returning the state to being the business capital of Australia; 

• Further reductions in property taxes that discourage housing investment and new housing supply;

• Measures to reduce regulatory burden and provide greater policy certainty for small businesses;

• More land release and faster precinct structure planning in growth areas;

• Faster and more coordinated approval processes across planning, infrastructure and servicing agencies;

• Additional support for apprentices, trainees and small businesses employing them; and

• Reforms that improve the feasibility of new housing projects and encourage private investment.

"The encouraging thing about this campaign is that housing is finally being treated as a priority issue," Ryan said.

"Both major parties have already adopted elements of the agenda HIA has been prosecuting throughout this election year.

"With one month to go, we are calling on them to finish the job.

"The next Victorian Government will not solve the housing challenge through targets and announcements alone. It will require practical reforms that make it easier, faster and cheaper to build homes.

"Victoria's builders stand ready to deliver. What we need now is a stronger commitment from all sides of politics to remove the barriers standing in the way," concluded Ryan.