Election policies must focus on housing

by AB06 Aug 2013

The Housing Industry Association (HIA) has called on both major parties to embrace election polices to promote a housing recovery in the Australian economy.

"Residential building is one of the few sectors in a position to generate substantial economic activity in the wake of the mining boom," says HIA managing director, Shane Goodwin. "New home building has a significant multiplier effect that drives activity throughout the wider economy."

Goodwin says that, for a 1% productivity increase in new home building – either through cutting ‘red tape’ or modernising the taxation system – the wider economy will benefit by around $1b.

"Australia is currently building around 25,000 homes per year less than a decade ago, which is not only putting the brakes on job creation in the sector, but placing upward pressure on housing prices. Housing affordability is consistently being nominated as one of the top few issues on the minds of voters, and there is clearly a great deal of angst amongst Australians about how the current and future generations will be able to afford a home."

HIA says that key areas for policy action to promote a revival in new home building include:

  • Reform the taxation system, including the removal of inefficient taxes on new housing
  • Reduction of the red and green tape burden that is choking small business
  • Improved funding mechanisms for residential related infrastructure
  • Better access to finance for home buyers and builders
  • Modernisation of the industrial relations system

"Any party or candidate that goes into the federal election without a significant housing platform in their policy list is ignoring a key part of the economy and the concerns of millions of Australians," says Goodwin.

COMMENTS

  • by Incognito 6/08/2013 9:50:16 AM

    I would love to hear something of substance on housing from the Opposition. Actually, on anything.

    I'll keep waiting..

    Constings too if you don't mind.

  • by SIDBROKER 6/08/2013 12:32:14 PM

    HIA would see all the volume hurdles back to much higher levels in the building industry except for one major issue. Its called NCCP. A Rudd, Swan and Labor initiative along with some of the geniuses at treasurery. All public servants I might add receiving a large and regular income from all of us. A large percentage of our Great Australians can no longer get finance to buy, sell or renovate. Solution: Given you fellas are based in Canberra some of you must have contacts with in the political arena down there and simply get a better understanding of what i keep telling you and then lobby to have it rolled back to a sensible and practical level so as we can all get back to normal business. Its no secret how destructive Labor are to business and yet they are still getting away with this draconian legislation that discrimates against a huge percentage of our own people. It has been accepted by and large by most top level players in this industry and have to ask you the question WHY? We have fought wars to maintain our freedom and yet Rudd and Labor have us all under their thumb!