HomeBuilder was one of the government’s major economic stimulus measures in 2020. The demand for residential building generated by the program exceeded all expectations.
The industry has a substantial pipeline of residential building work to commence over the next 18 months. The surge in economic activity stemming from the increase in home building has played an important role in driving the recovery in employment.
This year we expect the government’s fiscal strategy will increasingly focus on ushering in an economic recovery and targeted support for industries that remain vulnerable.
Given the substantial volume of work that the housing industry has in the pipeline, further support measures for residential building may be limited. Nevertheless, Australia will need an efficient and productive residential building industry as it emerges from the COVID-19 recession.
HIA’s pre-budget submission to Treasury suggested a range of initiatives that will improve the capacity of the industry to contribute the economic recovery, lift the rate of home ownership, and improve supply, affordability and quality of new housing in Australia.
HIA’s recommendations include:
- establishing a national agenda to reform taxes on housing
- supporting training of the next generation of trades workers
- reducing barriers to foreign investment in the industry
- expanding the First Home Loan Deposit Scheme
- increasing the supply of social and affordable housing
- improving the collection of housing data
- resourcing programs that assist industry adapt to changing regulations
- outlining the pathway to restore immigration.
The success of HomeBuilder puts the industry in a strong position to begin the 2021-22 financial year and we stand well placed to make a strong contribution to the economic recovery. Adopting HIA’s policy recommendations would reinforce the industry’s capability to drive economic growth throughout the economic cycle.
The 2021-22 Federal Budget will be announced on Tuesday 11 May.