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“The Planning Amendment (Better Decisions Made Faster) Bill before Parliament includes many significant planning reforms industry has long called for and industry wants to see the two major parties come to the table and get these reforms passed.
“The proposed amendments to the planning permit process will speed up approvals and provide industry and homeowners with greater certainty and cost reductions in the delivery of new homes.
“One of HIA’s key asks was to remove unnecessary barriers to planning applications for simpler projects. The proposed amendments recognise that home building projects do not need to be held up by unnecessary restrictions giving local councils more ways to say no.
“The Australian Greens have moved amendments to the Bill to compel the Victorian government to introduce inclusionary zoning into the planning system – and disappointingly it appears the Labor government is considering the Greens proposals in an attempt to remove the impasse and get their planning reforms passed.
“This would be a worst case outcome for industry and homeowners as those proposals would essentially mean a new tax on housing, the so-called affordable housing contribution, to be imposed as a condition of a planning permit by local government.
“Taxes and regulatory costs already make up almost half the cost of a new home in Victoria. Now it seems that the new planning reforms are being held to ransom, and if Labor pass these laws with this new “affordable housing” tax it will make new housing projects become even less financially viable in Victoria.
“Planning reforms are too important to be held up by political point scoring. We need the planning reforms passed now without even more taxes being added to the mix.
“HIA is urging Labor and the Coalition to come to the table and pass a sensible suite of planning reforms to let homes be approved faster so builders can get on with the job of getting more Victorians into new homes sooner”, concluded Mr Ryan.
The Housing Industry Association (HIA) has welcomed the Queensland Productivity Commission’s (QPC) Final Report as a vital blueprint for improving housing supply and affordability. However, HIA warns that the State Government’s refusal to tackle local government planning barriers threatens to derail the entire reform agenda.
“Lower interest rates have seen the volume of new homes commencing construction increase, but they still remain well below the government’s target,” stated HIA Senior Economist, Maurice Tapang.
The latest dwelling commencements data released by the Australian Bureau of Statistics today shows a sharp pick-up in multi-unit residential construction activity in the ACT.
“It is good to see the NSW Government taking action to address the chronic undersupply of housing in NSW,” said Brad Armitage, HIA Executive Director NSW.