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{{propApi.successMessage}} {{region}} Change locationHow to remove the barriers to the supply of housing
How to remove the barriers to the supply of housing
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In this section
- Unlock land supply through planning reforms
- Reduce tax on housing
- Cut the red, white and green tape that drives up housing costs
- Improve housing data to make meaningful and well-informed decisions about housing supply
- Deliver the infrastructure needed to get land ‘shovel ready’ faster
- Focus on housing the regions
- Encourage innovation across the construction industry
- Support the transition towards net zero.
Unlock land supply through planning reforms
The adequate supply of developable land is crucial to driving the delivery of housing. To unlock land supply a Federal government must drive planning reforms.
How can government unlock land supply?
Harmonise planning systems through the establishment of a new national planning body.
Commit to a national planning summit.
A national planning summit should focus on:Read more
Mandate regular reporting on the release of land for housing development.
Reduce tax on housing
Housing is the second most heavily taxed sector of the economy and is a key barrier to the supply of housing.
Taxation policies are playing a major role in driving up costs. Taxes now account for up to 50% of the cost of a new home in most major cities.
Another barrier to home ownership is state and territory government stamp duties that are paid up front and eat into home buyers deposits. They are universally acknowledged as inefficient.
Housing taxes cascade adding cost. Stamp duty can be paid multiple times as raw land is transferred through the development process with GST added along the way. Taxing taxes is inequitable and erodes affordability.
Finally, to address the acute shortage of housing stock, governments need to attract more foreign investment, not increase taxes on them. Currently the imposition of foreign investor surchargers across the country simply puts another roadblock in front of housing supply.
How can government reduce the tax on housing?
Exempt new housing construction from GST.
Remove the cascading application of stamp duty on GST, development taxes and levies.
Take a lead role through National Cabinet for the removal of inefficient and inequitable taxes such as stamp duty on new housing construction.
Retain the current taxation arrangements for investment in residential property.
Negative gearing and capital gains tax arrangements underpin Australia’s long term private rental housing market and have helped to keep downward pressure on rents.
National Cabinet should work to remove foreign investor surcharges for purchasing residential property.
Cut the red, white and green tape that drives up housing costs
The industry is overwhelmed by continual regulatory change and the increasingly complex rules for building homes and running a business. More and more people are looking to leave the industry due to regulatory reform fatigue.
How can government cut red, white and green tape?
Apply robust regulatory impact analysis. This analysis must specifically considers the impact of regulatory changes on small business and considers regulatory offsets to counteract the impact of any proposed regulations.Read more
Establish a ‘Housing Supply Minister’ that has sole responsibility for approval for all policy affecting housing supply and affordability.
Make ‘housing affordability’ a guiding principle for all government departments developing housing related policies.
Implement a comprehensive deregulation agenda that includes a moratorium on any new regulatory measures that would add to the cost of housing.
To improve the quality and compliance of building work the top 10 referenced Australian Standards should be freely available.
A feasibility study be commenced to improve accessibility to all Australian Standards.
Move to a five-year amendment cycle of the National Construction Code.
This would deliver more certainty and stability about regulatory change and support greater industry education and innovation.Read more
Improve housing data to make meaningful and well-informed decisions about housing supply
Underestimation of population growth is a systemic policy failure that compounds the challenge of delivering sufficient housing and boosting home ownership rates.
Measuring underlying housing demand is vital to ensure that housing policy decisions are accurately informed.
How can government improve housing data?
Fund a national residential land planning council to provide monitoring and reporting of land supply and forecasts at all stages of the land supply pipeline.
Deliver the infrastructure needed to get land ‘shovel ready’ faster
A lack of funding for essential enabling infrastructure, particularly the key ‘last mile’ enabling infrastructure is a handbrake on the supply of new housing.
How long it takes to deliver this infrastructure and who pays for it is critical in determining the ultimate land price. This has a significant flow on effect on housing affordability.
Currently these costs manifest as taxes and charges that may fall on developers, but ultimately, are passed on to the homebuyer.
A plan to share responsibility for infrastructure funding across Government, existing users and developers is critical in the longer term to deliver more land for home building.
How can government support the delivery of infrastructure?
Increase government investment in enabling infrastructure to support residential development and get shovel ready land delivered faster.
Ensure a balanced infrastructure investment is directed towards supporting a growing population in regional Australia.
Ensure infrastructure costs are equitably shared and not burdened only on those supplying new housing.
Focus on housing the regions
Regional Australia is now home to more than 8.5 million people and is growing.
While the regions provide so much, affordability, a sense of community, fulfilling career options and green space, the disbursed population presents unique challenges.
404 Local Government Areas (LGA’s) out of Australia’s 554 are classed as being in regional Australia. Of that, 233 have a population of less than 10,000 people. These 233 represent under 3% of Australia’s population. By comparison the Brisbane LGA alone captures 3% share of the population.
Not surprisingly, policy makers often focus attention on the higher concentration areas of the capital cities. But the shift away from the cities demands the need for a regional perspective on key decisions affecting housing.
How can government better focus on housing the regions?
Enhance Regional Satellite Cities as ‘regional hubs’, prioritise investment and give them a ‘seat at the table’ on key policy decision making alongside National Cabinet.
Increase government investment for regional housing in enabling infrastructure including water, sewerage, electricity, roads and other key services to supports new developments and get shovel (build) ready land delivered faster.
Foster partnerships between the public sector and private developers.
Boost local economic development to create jobs and investment in community infrastructure.
Encourage innovation across the construction industry
Investment in technological advancement and research and development in Australia has been lacking over the past decade. Often our regulatory requirements are slow to adapt and can present roadblocks to the adoption of new and more innovative forms of construction.
Add to this increasing regulatory obligations on manufacturers and suppliers that are hindering greater productivity and innovation.
How can government support innovation?
Proactively support research and development into new and emerging technologies, specifically building technologies, that can facilitate greater efficiency in construction.
Develop partnerships between government, industry, and educational institutions to ensure the necessary skills and technologies are available to meet future housing needs.
Remove roadblocks by simplifying current regulation including supply chain reporting and sustainability obligations to support Australian manufacturers innovate.
Support the transition towards net zero
The global push towards net zero has inspired Government action focusing on a Future Made in Australia and the decarbonisation of the economy.
The construction industry and the building product manufacturing sector are key players that can be at the forefront of driving this transition towards net zero.
How can government support the transition towards net zero?
Establish a ‘Building Product Sector Transition Strategy’ to support Australian manufacturers and suppliers in the net zero transition.
Develop a workforce and labour strategy to support manufacturers and suppliers build and maintain their workforce during and beyond this transition.
Establish a taskforce to work with manufacturers and supplies to provide future energy security.
Facilitate direct engagement and coordination between Industry, Treasury, Housing and Energy Ministers and key residential construction industry stakeholders.