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During the 2025 State Election, the Tasmanian Liberal Government committed to “bring the finalisation of the updated Regional Land Use Strategies in-house to accelerate completion and unlock coordinated, region-wide land use planning.” This was a critical commitment to address a decade of stagnation in strategic land use planning in Tasmania.
Instead, today’s announcement by the Minister for Housing and Planning confirms that responsibility remains with regional authorities, with additional funding provided to the Northern Tasmania Development Corporation and Cradle Coast Authority to complete drafts by 30 June 2026.
While HIA acknowledges the commitment to deliver the reports by 30 June this year, industry has heard similar promises of imminent completion for years now. The reality is that regional groups have been funded and tasked with this work for nearly a decade, yet progress has been negligible. Continuing with the same approach that has failed for years risks repeating the same mistakes at a time when Tasmania urgently needs strategic planning reform to unlock growth and more housing opportunities across our state.
“Continuing down this path risks repeating the same failures that have stalled Tasmania’s growth,” HIA Executive Director Benjamin Price said. “HIA is disappointed to see the Government walk away from its commitment to take control and deliver these strategies quickly.”
Regional Land Use Strategies underpin zoning, subdivision, and development decisions. Without updated strategies, Tasmania risks continued bottlenecks in land supply, driving up housing costs and undermining efforts to meet demand.
“These are critical documents for Tasmania’s housing supply and regional growth. Tasmania’s housing crisis demands urgency – not risks of more delays,” Mr Price said.
HIA says residential builders and trades remain cautious about hiring in 2026. Not due to a lack of housing demand, but because of mounting cost pressures, regulatory hurdles, and persistent skills shortages, according to a survey of small to medium enterprise members.
Workplace laws are set for more changes in 2026.
Australia’s residential building industry has entered the new year with confidence still on shaky ground for small businesses as rising costs and policy uncertainty continue to cloud the outlook.
Tasmania’s housing market slowed in November, with building approvals falling sharply compared to October. Approvals for new homes dropped almost 20 per cent, and even after seasonal adjustment, the decline was 5.8 per cent.