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{{propApi.successMessage}} {{region}} Change locationInterest rate cuts won’t deliver 1.2 million homes
Interest rate cuts won’t deliver 1.2 million homes
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“Today’s decision will be welcomed by many, including many aspiring homeowners who, with renewed confidence, will re-enter the market and build their own home,” added Mr Reardon.
“While today’s decision could act as a catalyst for more on-the-ground home building activity, it will not be sufficient to achieve the Australian government’s target of 1.2 million homes over five years.
“Even with the ongoing expectation of cuts later in the year, there are far more important structural reforms required of policymakers for Australia to address its housing crisis.
“Up to half the cost of a house and land package in Australia is because of government taxes, costs and restrictions.
“Tax reform must address the burden of stamp duty on aspiring homeowners and the punitive surcharges imposed on the very investors needed to address Australia’s rental crisis.
“Shovel-ready land and associated infrastructure, especially transport and utilities, need to be brought to market faster.
“Planning frameworks need to be more accommodative of higher density housing and approvals processes need to be streamlined and simplified.
“Crucially, Australia needs the workforce to build 1.2 million homes over five years. HIA estimates this will require an extra 83,000 workers in key construction trades – a 30 per cent boost on the current workforce.
“The skilled migration system needs to be simplified and fit-for-purpose and there needs to be an ongoing domestic workforce development plan that supports apprentices, the public and private organisations that train them, and the businesses that supervise and provide on-site experience for them.
“Failure to address these constraints on home building will not only fail to address Australia’s housing crisis but also act as a major drag on economic growth, productivity and living standards,” concluded Mr Reardon.
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