Australian Treasurer Jim Chalmers has announced that the government is making up to $900 million available to states and territories through a new National Productivity Fund, to boost competition and productivity across the economy.
This will incentivise states to achieve productivity gains through pro‑competitive policies, “choosing from a menu of options”.
“Areas of focus could include streamlining commercial planning and zoning, and removing barriers to the uptake of modern construction methods,” Dr Chalmers said.
“It’s all about rewarding states with more revenue, where they deliver meaningful and measurable economic reforms.”
Property Council Chief Executive Mike Zorbas said Premiers and Planning Ministers who put in the leg work on housing supply should be rewarded for their efforts.
“This housing crisis demands we pull every lever, and making our planning systems fit for purpose is the golden lever,” Mr Zorbas said.
“State Premiers and Planning Ministers have a mighty housing supply challenge in front of them.
“We would have 1.3 million extra homes today if our planning systems retained the efficiency they had in the twenty years before 2001*.
“Rewarding state and local government housing supply innovations should be top of mind alongside boosting last-mile infrastructure and addressing taxes that hinder investment and reduce affordability.
“With welcome and much-needed Federal funding for social housing, planning reform and housing infrastructure, this new fund will help to cut through housing red tape and boost home construction.
“The Property Council also welcomes the additional focus on prefabricated and modular homes in the fund.
“We need large-scale supply chains, substantial investment and regulatory reform to put industrialised construction on the front foot in Australia,” he said.
CEO of the independent
research group Building 4.0 CRC Prof Mathew Aitchison said we need to find new ways to do more, with less.
“The Government’s increased focus on Modern Methods of Construction (MMC), including prefabrication and modular homes, recognises that we need to ramp up our adoption of new ways of building if we are to solve our housing crisis.
“We know using Modern Methods of Construction (MMC) can conservatively reduce costs and timeframes by 20 per cent. Importantly, it can attract a more diverse workforce, critical if we are to meet the gaping shortfall in construction labour in Australia.
“It needs to be harnessed alongside traditional building to boost productivity and supply, and to make sure we are using all levers to solve our housing problem.”