The Housing Industry Association (HIA) said that while the Australian government’s plan to build one million homes within five years will ensure that the acute housing shortage does not deteriorate further, it will not address long-term undersupply.
“Maintaining a healthy supply of new housing in Australia is key to helping solve the affordability problem,” said Jocelyn Martin, HIA deputy managing director of policy and industry.
In its 2023 Federal pre-budget submission, HIA called on the government to explore the proposed policy solutions, to solve issues that encroach on supply, such as land supply, migration, skills, and taxes.
“Land supply is fundamental to ensuring consistent housing supply and land supply data is crucial to a national knowledge base and to future national policy initiatives,” Martin said. “A national data bank to keep track of this information would help substantially.”
In response to the ongoing demand and chronic shortage of trades due to the impacts of COVID-19, HIA has urged the government to develop and implement a well-rounded and integrated immigration policy, focusing on skills, as part of an overall population policy.
“The government should consult with industry to develop a visa that will enable the residential building industry to alleviate trade shortages through skilled migration,” Martin said.
“But migration is not the sole answer to the skills shortage, migration policies should also be complemented with schemes that focus on attracting and retaining apprentices. Highlighting career opportunities though trades and mentoring programs are needed.”
HIA also wanted the government to do away with excessive tax on housing, as it hinders growth in the market and housing affordability.
“Taxes such as stamp duty tax are a huge barrier for first homebuyers, and HIA noted, some state governments are preparing to transition away from stamp duty tax,” Martin said.
HIA said it also wanted the Federal government to take a leadership role, working with the state and territory governments to establish a dialogue through the National Cabinet to investigate measures that would support the removal of stamp duty.
“Supply of new housing is crucial not only in ensuring that Australians can have an opportunity to buy or rent an affordable home, but also so that Australia’s economy can grow and prosper,” Martin said.
Read the full submission on the HIA website.
What do you think should be done to address Australia’s chronic housing shortage? We’d love to hear from you in the comments below.
