To read the full release, click here:
Federal Budget disappointing on housing
Urban Taskforce Australia CEO, Tom Forrest, tonight said the property development and construction sector are looking to the Commonwealth to commit to a significant boost in housing related infrastructure in tonight’s budget.
The Housing Accord targets require 240,000 to be completed each year across Australia.
According to the latest data available from the ABS, in the 12 months until the completion of the September quarter 2024, there were only 161,557 new homes commenced.
This gap was a call for action in tonight’s budget. It was a disappointment.
Urban Taskforce members have repeatedly called for a solid boost to infrastructure funding as well as a fast track for a business case light assessment so major roads, transport, water and public open space infrastructure can be built in time to service the Housing Accord commitments.
Tonight, from the housing supply perspective, the budget delivered:
- $800 million to make the Help to Buy shared equity scheme relevant to Sydney and Melbourne housing prices and to lift the income eligibility thresholds
- $17.1 billion over 10 years (6 years after the Housing Accord has finished) for road and rail projects
- The Commonwealth inclusion of a miserly $54 million for improving the states regulation and take up of prefabricated homes – was the first of the Treasurer’s big announcements and while welcome, this is not going to solve the problem.
While all these investments are welcome, the Minister for Housing, Clare O’Neil, along with Treasurer Jim Chalmers, have confused investment in social housing with solving the housing affordability crisis by supporting those that deliver 96% of Australia’s housing stock – the private sector.
There was no new money for the Housing Australia Future Fund, just a re-stating of the existing commitments.
There were no financial incentives offered to the states to reduce fees, taxes and charges (including affordable housing taxes) that are driving up the cost of new housing, making new home prices and rents unaffordable.
The commitment to infrastructure was a re-stating of previously announced funding for roads and rail, spread out over the next ten years. All investment is welcome, but it does not meet the needs of the states and hill hamper housing supply.
The budget failed to bring the $3 billion to the states for the Housing Accord New Home Bonus forward to immediately enable the states to boost their own housing related infrastructure to be funded.
Tonight’s budget was a chance to put the wow factor back into the Commonwealth Budget when it comes to housing – but it failed to deliver.
The housing development and construction sector is disappointed in the Albanese Government and its lack of commitment to solving the housing supply crisis – which sadly prevails. All eyes are now on the Opposition leader, Peter Dutton, to see if he has a contribution to make to support the private sector housing supply needed to drive down rising new home prices and rents.
The big hope from our sector is that the Prime Minister has saved some decent licks of funding for some big announcements during the election campaign, but there was very little of our sector tonight.
end
The comments and analysis above can be attributed to Tom Forrest, CEO, Urban Taskforce Australia.