HIA calls for 'hard-smart' policies as home construction stalls

There is no evidence that extra red tape proportionally protect workers and consumers. However, we see a “rule of diminishing returns,” when new regulations become more bureaucratic burdens without adding much tangible value. Someone has to pay for this, and it will eventually be either the consumer via increased housing prices or ACT Government itself through reduced tax take, and falling revenue from land sales.

Another aspect is the outflow of capital interstate as investors are deterred by the territory’s policies, particularly prohibitive anti-landlord legislation (rent caps and removal of no-reason lease termination). Existing landlords sell up, undermining construction activity while fewer new investors replace them. Perhaps relaxing tenancy legislation would be a cheaper and faster option for ACT Government – it doesn’t cost anything to make an inquiry or seek feedback on rental reform. The time is running out as further delay will risk missing its 30,000 new housing target by 2030.

Oh what a surprise, the Housing Industry Association whose members are those in the residential construction, development and home building industries has its hands out again wanting the government to provide them financial support to offset the costs of paying taxes. Oh the hypocrisy! This is the same industry who squawks the loudest when the government introduces building regulations and health and safety legislation to protect consumers and workers and rein in the fraudulent, reckless and underhanded behaviour we so often see. Thankfully there are Labor governments around the country who are committed to reforming and cleaning up the industry.

The HIA is now urging voters to vote for a party at the upcoming election who will do their bidding by softening building and construction laws to restrict government oversight and cut red tape. Laws which have been introduced to protect workers and consumers and curb the reckless, underhanded and shoddy building practices we so often see. Shoddy and dangerous building practices, unqualified builders, substandard materials, project delays and cost overruns, shortcuts and safety risks leading to deaths and injuries, corrupt construction and certifying practices, etc. etc.

Maybe with a returned Albanese government we will see the same level of scrutiny they directed towards the CFMEU with a renewed focus on the building and construction industries, introducing laws to curb irresponsible behaviour and weeding out fraud and corruption which is so often seen from them.

Australia is on track to have 3 million homeless by 2030. We can’t even build enough housing to meet the 400,000 new migrants coming to this country each year, let alone meet internal demand. No wonder there are tent cities popping up everywhere you look.

States and ACT in particular love property taxes and red tapes. Land tax, triple rates, LVR plus tenancy regulations all put brakes on residential constructions. Add to it uncertainty around capital gains tax. Are we surprised that people divest away from housing?