Master Builders backs Treasurer on housing supply

Mr Wilhelm Harnisch, CEO of Master Builders Australia said, “Unless there is urgent reform to address housing bottlenecks, the strong supply response needed to meet unmet demand will not eventuate, with dire consequences for housing affordability and the economy’s capacity to grow.”

He said, “A large and growing shortage of housing looms as a key issue with the potential to derail a sustainable Australia’s economic recovery.’

“Housing is an essential component of Australia’s productive capacity.”

“The Treasurer is right to highlight state and local government delays and inefficiencies preventing an adequate supply response.”

Mr Swan raised concern that planning and development constraints mean that it can take 15 years to bring housing on-stream, a key finding of Housing Supply Council research and analysis by Master Builders Australia.

Master Builders believes governments need to address supply-constraining factors like developer charges, or the upswing in residential building will fall well short of what’s needed - three or four years building 200,000 plus dwellings per annum to firstly meet ongoing demand from a growing population and to also make inroads into the massive deficit of housing that has already accrued through underbuilding.

Mr Harnisch said, “Housing affordability will undoubtedly return as a front page story unless all levels of government urgently attack the problem - much more needs to be done about land release policies, development approvals and inefficient developer charges.

He said, “Master Builders strongly backs recent comments by the Treasurer and looks forward to the Henry Tax Review which should present the Government with an opportunity to consider the impact of taxation on land and housing and facilitate a review of the developer charging regime through the COAG process.”

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