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{{propApi.successMessage}} {{region}} Change locationProductivity fund focus must be on cutting red tape
Productivity fund focus must be on cutting red tape
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“This fund offers significant incentives for states to reduce regulatory barriers and roadblocks to unlock greater housing supply delivery.
“One of the most significant issues our industry faces right now in meeting new homes targets, is the layers upon layers of regulation that builders need to navigate prior to obtaining approvals to build and putting a shovel in the ground.
“Not only are these layers of red tape adding significant time to the building approvals process, but they are adding excessive costs that directly impacts on housing affordability.
“It is pleasing to see from today’s announcement that a key component of the $900 million Productivity Fund, will be competitive funding for those states and territories that implement planning and zoning reforms and remove other barriers to boost construction productivity.
“The new fund represents a targeted approach to addressing Australia's key productivity challenges, and there is an urgent need for measures like this to remove the excessive red tape and help the construction industry deliver more homes, faster, while addressing systemic issues that have hampered progress for decades.
“However, regulatory hurdles are not the only challenges confronting the home-building sector. A recent HIA report revealed that Australia faces a critical shortage of skilled tradespeople in the residential building industry, estimating that an additional 83,000 workers will be needed to meet current and future housing demand.
“This shortage affects every facet of the construction process, from site preparation and plumbing to electrical work and final finishes, compounding delays and cost pressures across the sector.
“The initiative announced today, will help build momentum towards adopting more innovative construction practices, such as increasing use of modular and prefab construction that can assist with addressing some of these challenges.
“Regulatory inconsistencies though have often hindered their adoption, delaying projects and escalating costs. With this fund, it can help address some of those roadblocks and HIA has been advocating for more tailored rules for innovative forms of construction to support their great uptake.
“Today’s announcement is important initiative to help unlock further housing supply. It illustrates that there is no single solution to these issues, and instead reforms and targeted measures across all areas of policy are needed to address the nation’s housing needs,” concluded Ms Martin.
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