Five supply reforms that will assist affordability: Master Builders Australia

It comes as little surprise that Master Builders Australia’s submission to the Senate Inquiry into affordable housing looks at the ‘supply’ side of the equation.

They say that boosting the national housing supply is the key to increasing affordability, particularly due to the current shortages.

“Reducing the massive shortfall in new housing is the major challenge the nation faces in maintaining home ownership as a realistic aspiration rather than an unaffordable dream,” said Master Builders Australia CEO Wilhelm Harnisch.

“Supply side reforms must include measures to generate appropriate funding for social housing,” he said.

Here are the five points that they have suggested will help with housing affordability:

1. National competition style payments to local councils that improve supply of adequate releasable land (both greenfield and brown field’) and implement more efficient building and planning approvals.
   
   
2. Agreed ‘master plans’ to deliver positive housing outcomes that cover urban consolidation and urban and regional infrastructure plans to deliver a housing mix to meet the needs of different demographics.
   
   
3. All local councils to develop Land Release Plans which identify  and provide an indicative forward schedule of ‘greenfield’ and ‘brownfield’ land over a rolling 10 year horizon which could be made available for housing development.
   
   
4. Make state and territory infrastructure charges subject to a housing affordability assessment to ensure that the supply of adequate housing stock is not being undermined. The Commonwealth should penalise states and territories which impose excessive developer charges should be penalised through a reduction in transfer payments.
   
   
5. An online ‘InfoHub’ should be established by the Commonwealth to allow ready comparison local councils and state and territory jurisdictions and the efficiency of their processes, developer charges and progressive land release schedules.

Source: Master Builders Australia