Harper reform model can boost housing affordability

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Harper reform model can boost housing affordability

The Government’s response to the Harper review opens the door to using a competition incentive model for housing to target housing affordability, lift productivity and boost economic growth. 

In welcoming the Federal Government’s response to the Competition Policy Review the Property Council of Australia said that housing affordability remained a pressing problem that could benefit from national competition policy. 

“Housing affordability is a major national challenge that needs a new approach,” chief executive Ken Morrison said. 

“Applying a competition incentive framework to housing affordability can ensure we get the housing supply we need linked to infrastructure and jobs.  

“The Treasurer has today put a workable model on the table to get the states and territories on board with reforms to address housing affordability.  

“Poor housing affordability hurts families and drags down the productivity of our cities. 

“Current record levels of housing construction are only now taking the edge off prices. 

“This comes after a decade of undersupply in our major markets, but there is a concern that construction levels have peaked. 

“Despite the reform efforts of various state governments, the hard facts are that our planning, zoning and infrastructure delivery policies are not up to the job. 

“According to Infrastructure Australia, three quarters of Australia’s population growth will occur in just our four largest cities.  

“Without a new approach, this will make housing affordability worse and hold the national economy back. 

“Under a national competition model states and territories would receive incentive payments to reform their planning systems, set their housing supply pipelines and think innovatively about affordable housing solutions. 

“This approach would boost federal and state government tax revenues, which could be used to fund the incentive payments. 

 “The Harper review provides a unique opportunity for the Federal Government to take a leadership role in overcoming the housing affordability challenge.” 

The Property Council’s Development Assessment Report Card 2015 demonstrated that every state and territory still has a long way to go to implementing better planning frameworks. 

A copy of the 2015 Development Assessment Report Card, including detailed analysis of state and territory planning systems and recommendations for reform is available at https://www.propertycouncil.com.au/downloads/submissions/DAreportcard2015.pdf

The Property Council welcomed the Government’s support for the Harper review recommendations on retail trading hours, road pricing and red tape reform. 

Media contact:  Fiona Benson  |  M  0407 294 620  |   E  [email protected]