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The federal government’s economic reform roundtable has sparked mixed reactions from the housing industry, as key bodies call for firm action to fix the housing crisis.
Key industry bodies have welcomed discussions from the Albanese government’s three-day economic roundtable, but called for more firm action in the areas of construction and approvals processes.
On matters of property, Treasurer Jim Chalmers outlined priority areas including reforming the National Construction Code to reduce red tape and complexity in the hopes of boosting housing supply.
Additionally key commitments also included speeding up an overhaul of environmental approvals via the Environment Protection and Biodiversity Conservation (EPBC) Act.
Further, the Treasurer has prompted action on the clearing of the current backlog of housing projects awaiting approvals.
Housing Industry Association managing director, Jocelyn Martin, welcomed the commitment to cut red tape and streamline approvals, but flagged that more work is needed to ease pressure in the housing construction industry.
“It has been encouraging to see both major parties at their respective meetings this week talking about the need for targeted actions to boost housing supply, but goodwill and commitments to do more do not get keys in doors. We need firm action,” she said.
Martin said clearing the backlog of projects awaiting approvals must be the first step, but flagged skills shortages as a major issue.
“The aspiration of the government’s housing target will only be achieved if we have all hands on deck,” she said.
Martin added that while the government’s level of engagement with industry on important matters has been encouraging, there needs to be “real action” that comes from the discussions.
“Industry is now demanding that real and meaningful reform actions on the well-established issues facing our sector are committed to with bipartisan support and clear timelines are agreed to and developed with industry and for industry,” she said.
Meanwhile, Master Builders Australia also welcomed the bid to streamline processes and approvals to address the current backlog.
“These outcomes reflect Master Builders’ calls to pause non-essential NCC changes, streamline approvals, and harmonise standards,” it said.
“The recognition of prefabricated and modular construction as part of the housing solution is another positive outcome, as well as support for improving national licensing and occupational recognition, which have long been advocated by Master Builders.”
However, the body said one missed opportunity was the lack of meaningful reform in the workplace relations system, stating the current settings inhibit the productivity and flexibility of the built environment.
Additionally, the group said that despite a strong consensus on the urgency to build more homes, there needs to be a clear timeline for action to be taken.
“The industry cannot afford further delay: housing approvals already take up to two years and subsequent build times continue to blow out,” it said.
It added that the government’s tax reform agenda is an area that needs more clarity.
“It is vital that tax settings support private investment and give certainty to the businesses that need to deliver the government’s housing agenda.”
“Master Builders also reiterates its position that negative gearing and capital gains tax settings must be retained in their current form, as any changes would risk undermining new housing supply,” it concluded.
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