States need to wind back red tape to get the ball rolling

The Federal government’s Mid–Year Economic and Fiscal Outlook (MYEFO) is being touted as their responsible economic management tool and the best way to put downward pressure on inflation and ease cost–of–living pressures.

Backing themselves in as responsible economic managers of the economy, the government is tapping itself on the shoulder citing that their good fiscal management has helped engineer an historic turnaround in the Budget position, and it has, to a degree.

The government does acknowledge that there’s more work to do to ease cost–of–living pressures, repair the Budget, and invest in the foundations of future growth.

The building and construction industry peak body, Master Builders Australia, also recognises the efforts the government has undertaken to tackle inflation and boost housing supply but stresses all policy levers to tackle the housing crisis must be pulling in the same direction.

Master Builders chief executive Denita Wawn said a strong building industry meant a strong economy.

“Every $1 million worth of building activity supports around $3 million in activity across the economy.

“We know that one of the biggest challenges in tackling inflation and cost of living is from pressures in the housing market, including rental inflation.

“From social and community housing, rental properties to owner-occupiers, there is a common constraint – supply.

“The focus to solving the housing crisis is two-fold: getting inflation back under control, which will ease interest rates and fostering an environment conducive to investment and development.

The industry has been quick to applaud the $6.5 billion in funding commitments made to improve housing supply and affordability.

The MYEFO announcement confirmed funding for for previously announced measures, including $2 billion through the Social Housing Accelerator, $1 billion to National Housing Infrastructure Facility, $3 billion for the New Home Bonus and $500 million to establish the Housing Support Program.

Ms Wawn said Master Builders thanked the efforts of the Treasurer Julie Collins, who was using appropriate fiscal levers to address some of the biggest bottlenecks across the housing spectrum.

“It’s now up to the states to follow through on their commitments to address challenges within the planning and approvals system.

“Builders and tradies have a big job ahead of them to ensure we can build enough homes to meet our Housing Accord objectives.

“On a policy front, further efforts are needed to lift economic growth, especially in building and construction, with a turbocharged productivity agenda.

“We need to ensure tradies are spending as much time as possible on the tools without unnecessary delays and disruptions.”

Master Builders have promised to continue to work closely with governments at all levels to ensure they can put further downward pressure on the cost of building and the time it takes to build