THE Housing Industry Association (HIA) is urging the federal government to use the coming 2026-27 budget as a reset on housing policy, warning Australia’s housing shortage was now a structural economic challenge.<\/p>\n
Last week, HIA managing director, Jocelyn Martin, said the association’s pre-budget submission outlined a suite of supply-side reforms across taxation, finance, infrastructure, planning, skills and regulation to support delivery of the federal government’s target of 1.2 million homes by 2029.<\/p>\n
“Importantly, it highlights that persistent housing undersupply is contributing to inflation pressures, worsening rental conditions and constraining economic growth.<\/p>\n
“Housing supply is no longer a cyclical issue, it is a macroeconomic problem. If we want to ease inflation, improve productivity and restore affordability, we must remove the barriers preventing new homes from being built.<\/p>\n
“Housing is already one of the most heavily taxed sectors in the economy. Further tax changes, including to negative gearing or capital gains tax, would undermine investment, reduce feasibility and worsen affordability.”<\/p>\n
HIA is also calling for a review of cumulative macroprudential settings.<\/p>\n
Martin said restrictions on lending were locking first home buyers out of the market and adding pressure to rents without addressing the underlying supply problem.<\/p>\n
“To unlock stalled apartment projects, HIA has proposed a national program to expand state-based pre-sale finance guarantee schemes. Across the country there are projects ready to go but stuck because of financing constraints. This is a solvable problem if housing supply is treated as a national priority.<\/p>\n
“We estimate that the nation could need as much $5 billion boost to ‘last-mile’ enabling infrastructure funding to get homes shovel-ready sooner.”<\/p>\n
She said addressing construction workforce shortages was also central to lifting supply.<\/p>\n
HIA wants the long-term continuation of employer apprentice incentives, funding for pre-apprenticeship programs, targeted trade migration pathways and improved skills recognition processes for migrants.<\/p>\n
“Housing targets will not be met without a larger workforce. Business as usual will not deliver the trades numbers Australia needs,” Martin said.<\/p>\n
The federal government should also, according to HIA, reduce regulatory burden by moving the National Construction Code to a five-year amendment cycle, providing free access to Australian Standards, and cutting cumulative red, white and green tape adding unnecessary cost to new homes.<\/p>\n
“The 2026-27 budget will be a test of whether housing supply is taken seriously. The focus must be on stability, co-ordination and reforms that increase supply, not measures suppressing it,” Martin said.<\/p>\n
Pre-budget submissions closed on January 30, and Treasurer Jim Chalmers is expected to hand down the budget in May.<\/p>\n
There has been speculation the federal government is considering a change to capital gains tax from the present 50 per cent discount on investment properties to 33 per cent or 25 per cent, which received tentative support from economists, unions, the Greens and crossbenchers on Thursday last week.<\/p>\n
Prime Minister Anthony Albanese and Housing Minister Clare O’Neil would not rule out reducing the discount, but said the government had no plans to change its tax policy. – WITH AAP<\/p>\n","protected":false},"excerpt":{"rendered":"
THE Housing Industry Association (HIA) is urging the federal government to use the coming 2026-27 budget as a reset on housing policy, warning Australia’s housing shortage was now a structural economic challenge. Last week, HIA managing director, Jocelyn Martin, said the association’s pre-budget submission outlined a suite of supply-side reforms across taxation, finance, infrastructure, planning, […]<\/p>\n