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HIA Executive Director Benjamin Price said the result reflected a system that is struggling.
"If a council can't fill its own seats, it's fair to ask whether it has the capacity to do everything else we expect of it," Mr Price said.
"Tasmania has 29 councils, and every one is a planning authority. Each council needs planners, surveyors and engineers to process development applications, building applications and plumbing applications. But the reality is that many councils already struggle to recruit and retain those people, resulting in inefficiencies, delays and frustration in the delivery of new housing.
"For our members, that means delays and different rules from one council to the next. For home buyers, it means waiting longer and paying more."
Mr Price said the Future of Local Government Review had already made the case for fewer, better-resourced councils.
"The work has been done, but what's been missing is the political will to act on it.
"We understand island and regional communities have particular needs, and any reform has to keep local representation. But the current structure isn't serving Tasmanians well, and during a housing crisis we can't keep putting this off.
“If local government can’t even get sufficient interest in councillor-positions, how can they be appropriately placed to retain these important planning and regulatory functions for housing delivery?”
HIA is calling on the Government to put forced amalgamations back on the table and to consolidate planning and building approval functions so councils have the scale to deliver in the interests of the Tasmanian communities they are meant to serve.
“During a housing crisis, protecting outdated council structures should not come ahead of getting roofs over the heads of Tasmanians.”
“The removal of the need for Home Building Compensation Fund Insurance for low rise apartment building projects will deliver more homes”, said Brad Armitage, HIA NSW Executive Director.
The Northern Territory Government is attempting to modernise its procurement practices by aiming to reduce red tape, make procurement more effective for both business and government and drive economic growth.
Peak community services, social housing, property, construction and homelessness organisations have united behind a simple message: Australia needs a long-term plan with greater scale and ambition to tackle the housing crisis and meet the needs of current and future generations.
The Housing Industry Association says a welcome improvement in housing affordability across Queensland should be viewed as an opportunity to accelerate housing supply reforms, rather than a sign the housing challenge has been solved.