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{{propApi.successMessage}} {{region}} Change locationCoalition to accelerate approvals to unlock more housing supply
Coalition to accelerate approvals to unlock more housing supply
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“A key reason why the cost of government fees, charges and taxes has increased by $160,000 over the past five years, is the increased time it takes to gain approval to turn farmland into a residential suburb,” stated HIA’s Chief Economist, Tim Reardon.
Wednesday, 16th April 2025
“Greenfields land development can take 20 years to gain approval with each tier of government having regulatory processes that are subjective and evolve over time.
“The lack of certainty and slow decision making adds to the cost of developing land for new home building. The expertise required to bring land to market, as well as the cost of holding land for decades, is one of the reasons why there is a small number of land developers in Australia, with international investors increasingly the source of finance and expertise.
“The Centre for International Economics estimates that the taxes, fees and charges account for up to $576,000 to the cost of a new home.
“With each delay to the approval process adding time, and therefore cost, which is then taxed multiple times, every delay results in a cascading impact on the cost of a new home.
“Accelerating decision making, and ensuring clear policy directions, is one of the keys to increasing the supply of new homes.
“Combined with increased investment in infrastructure, accelerated decision-making processes reduce the regulatory costs of a new home. In addition, the cascading impact of other taxes on infrastructure, stamp duty and the GST exacerbate the upfront cost of infrastructure and delays.
“Reducing assessment timeframes, at all tiers of government, will lower the cost of delivering homes to the market.
“It is only through lowering the cost of new homes can the housing supply challenge be resolved.
“This will take decades.
“Policy makers should not shy away from making the ‘hard-smart’ policy decisions, such as building infrastructure and reforming the approvals process, just because they won’t impact on house prices for a decade.
“Too many housing policy decisions have been made to achieve an outcome within 3 years.
“It is reassuring that both parties are planning to make significant investments in infrastructure. Those economists that criticize politicians for making long-term, strategic economic decisions that are unlikely to have a positive impact within their time in Parliament should be admonished by their peers,” concluded Mr Reardon.
“The lack of certainty and slow decision making adds to the cost of developing land for new home building. The expertise required to bring land to market, as well as the cost of holding land for decades, is one of the reasons why there is a small number of land developers in Australia, with international investors increasingly the source of finance and expertise.
“The Centre for International Economics estimates that the taxes, fees and charges account for up to $576,000 to the cost of a new home.
“With each delay to the approval process adding time, and therefore cost, which is then taxed multiple times, every delay results in a cascading impact on the cost of a new home.
“Accelerating decision making, and ensuring clear policy directions, is one of the keys to increasing the supply of new homes.
“Combined with increased investment in infrastructure, accelerated decision-making processes reduce the regulatory costs of a new home. In addition, the cascading impact of other taxes on infrastructure, stamp duty and the GST exacerbate the upfront cost of infrastructure and delays.
“Reducing assessment timeframes, at all tiers of government, will lower the cost of delivering homes to the market.
“It is only through lowering the cost of new homes can the housing supply challenge be resolved.
“This will take decades.
“Policy makers should not shy away from making the ‘hard-smart’ policy decisions, such as building infrastructure and reforming the approvals process, just because they won’t impact on house prices for a decade.
“Too many housing policy decisions have been made to achieve an outcome within 3 years.
“It is reassuring that both parties are planning to make significant investments in infrastructure. Those economists that criticize politicians for making long-term, strategic economic decisions that are unlikely to have a positive impact within their time in Parliament should be admonished by their peers,” concluded Mr Reardon.
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