The Productivity Commission has released its 1,000 plus page five-yearly report, Advancing Prosperity. The Commission proposes productivity policy focus on key emerging trends including the shift towards service industries.
The Property Council of Australia has welcomed perspectives on managing least cost climate transition while noting disappointing omissions in the report.
Property Council Chief Executive Mike Zorbas said if it was good enough for the NSW Productivity Commission to tackle poor planning and housing undersupply in their 2021 White Paper, the worsening national housing crisis deserved the proper national analysis that only the national Productivity Commission can provide.
While the Commission revisits a fraction of its previous work from the review of the National Housing and Homelessness Agreement in this latest report, a deeper analysis of the flaws of state and territory planning systems and the failure to deliver housing against a growing national deficit is entirely missing from the report.
“The Productivity Commission’s powerful analytical skills are sorely needed on the important issues of cities and housing supply,” Mr Zorbas said.
“The role of good and efficient planning systems for our cities and deep housing supply that supports productivity and liveability for all Australians cannot be underestimated.
“The recycling of somewhat superficial zoning concepts, and a modest depth of analysis on the inefficiency of stamp duties, in place of a broader review of the deep failure of most state planning systems to support the transport and labour efficiency of cities, represents a missed opportunity.
“The role of good and efficient planning systems for our cities and housing supply that supports productivity and liveability for all Australians cannot be overstated,” he said.
While the Commission noted themes from the 2017 report, Shifting the Dial, which highlighted the importance of cities, had only increased in relevance following the pandemic, Advancing Prosperity does not build on the reform agenda needed for more productive cities.
Population growth will continue to be centred in Australia’s cities. How well cities operate as transport hubs, markets for housing and education and cultural centres will underpin health, participation and social cohesion over coming decades.
“Successive Australian governments have often failed to anticipate that housing and jobs must be sequenced together in the same areas so that people can live near to work. Australian cities must shift more towards high amenity, high liveability, medium density city living supported by great public transport,” Mr Zorbas said.
“If cities work well as sites of enterprise, trade, creativity and innovation this boosts productivity, job creation, wages, profit and tax revenues for all tiers of government.
“Australia needs a robust pipeline of diverse housing options to put us at the front of the queue for global skilled talent attraction and international students, with the prosperity, diversity and international relationship dividends they bring,” he said.
Mr Zorbas commend the Commission for acknowledging the impact climate change will have on Australia’s productivity and presenting reforms focused on achieving emissions reduction targets as efficiently as possible.
“We need to continue to chart a course to decarbonise the economy by 2050 in the most efficient way possible and the built environment accounts for 23 per cent of Australia’s emissions, over 50 per cent of electricity usage and presents some of the least cost abatement opportunities,” Mr Zorbas said.