Government inefficiency 'major obstacle' to affordable housing

by Julia Corderoy24 Sep 2014
Building and construction association, Master Builders Australia has saluted the Harper Competition Policy Review’s Draft Report for targeting housing affordability and highlighting the need for national competition policy reforms.

“Released yesterday, the draft report correctly identified the link between less affordable housing and inefficient planning and zoning processes,” Wilhelm Harnisch, CEO of Master Builders Australia said.

“However the Harper Review’s draft recommendations need further review to be effective in reforming local government reform planning and zoning processes. This is important given the impact of local council red and green tape on the community’s access to affordable housing,” he added.

Harnisch says local government inefficiency is a “major obstacle” to affordable home ownership.

“It unnecessarily drives up the cost of construction and chokes the supply of new housing. Reforms that increase housing stock would more effectively target housing affordability pressures than abolishing negative gearing,” he said.

Addressing Australia’s severe housing shortage will go further than just addressing housing affordability, says Harnisch.

“Tackling the nation’s massive housing undersupply will ensure access to affordable homeownership, provide adequate social housing and allow the housing industry to do its job and drive increased investment in non-mining sectors of the economy.”

Master Builders Australia will be submitting a response to the review that will reinforce the building and construction industry’s need for bold competition policy reforms that target solutions for these major issues. 



  • by Robin Webcke 24/09/2014 9:16:57 AM

    Fee gouging by local government and subsequent state bodies, plus high costs for work, drive the costs of develoment projects into the stratosphere. Developers cost are passed onto the hapless home buyer:-(