“The Commission has recognised what builders, developers and home buyers have been experiencing for years. Australia cannot solve its housing affordability challenges without reforming the systems that control how, where and when new housing can be delivered.

“The report is particularly significant because it challenges many of the planning assumptions that have constrained housing supply for decades.

“Among its key recommendations are measures to allow three storey townhouses on most residential land, removing or reducing minimum lot sizes, greater housing diversity and faster approval pathways. These are all reforms that have the potential to increase housing supply and improve affordability if governments are prepared to act.

“The Commission has rightly identified that housing supply is being constrained not only by planning regulation but also by infrastructure delivery and developer contribution frameworks.

“Too often, housing projects are delayed by poorly coordinated infrastructure planning, uncertain charging arrangements and approval processes that add unnecessary cost and complexity. Ultimately, these costs are passed on to home buyers.

“The report also highlights the impact of excessive assessment requirements, conflicting agency advice, subjective planning controls and lengthy approval timeframes. Every delay adds cost, creates uncertainty and reduces the number of homes that can be delivered.

“HIA has long argued that planning systems should facilitate housing delivery rather than frustrate it. If governments are serious about achieving their housing targets, they must be prepared to streamline approvals, remove unnecessary barriers and support greater housing diversity in the locations where people want to live.

“Some of the Commission’s proposed reforms will undoubtedly be controversial and are likely to face resistance from parts of government and the planning system. However, difficult conversations should not be avoided simply because they challenge long-standing planning practices.

“The Productivity Commission has made it clear that incremental change will not be enough. Meaningful improvements to housing supply will require governments to rethink planning controls, infrastructure delivery and approval processes that are no longer fit for purpose.

“The industry does not need another review confirming that housing has become slower, harder and more expensive to deliver. What is needed now is the political will to implement reform.

“If governments genuinely want to improve affordability and increase housing supply, they must focus on removing the barriers that prevent new housing from being built.

“HIA looks forward to working with the Productivity Commission and governments around the country to ensure the final report delivers practical reforms that support housing supply, affordability and greater housing choice for Australians,” concluded Mr Croft.

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