THE FEDERAL ELECTION IS SURPRISINGLY QUIET ON THE SUBJECT OF HOUSING AFFORDABILITY GIVEN IT IS SUCH A CRITICAL ISSUE. IN THE RECENT DEBATE AN AUDIENCE QUESTION ON THE TOPIC PROMPTED SOME INTERESTING OBSERVATIONS ON WHAT BOTH FEDERAL PARTIES HAVE ACHIEVED AND INTENDS TO DO.
Mr Abbott’s response focused on the reduction on commercial construction costs, initially on the abolition of the carbon tax which the industry estimates is adding about $5,000 to the cost of every new home. He also stated his intention to fully restore the Australian Building and Construction Commission as that led to the “achievement of some $6 billion a year in productivity savings”.
Prime Minister Rudd’s response focused on the current low interest rates. Whilst he acknowledged that the interest rates are controlled by the Reserve Bank of Australia, he saw the current low interest rates as partly the government’s doing as “we try to work with the bank to make sure that [a low interest rate] is possible.” He also noted the appointment of a Federal Minister for Housing and the introduction of the National Rental Affordability Scheme and the funding of 20,000 new social housing dwellings.
The Prime Minister went on to say housing “still needs an even bigger kick start.”
Whilst the issue of housing affordability exists throughout most of Australia, to a large extent the problem is perceived as a state issue as that is commonly where the planning system is centred. Whilst improvements in the state based approvals system are always being called for by industry, one of the core issues in relation to housing affordability is the delivery of infrastructure. The Prime Minister mentioned a “program we’ve got behind which is to co-invest with private sector developers in new lots to bring down the infrastructure costs,” however that program, to our knowledge, is still at discussion stage.
A review of approvals under the Federal EPBC Act from a cost benefit perspective would be informative as would a review of the roll out of broadband and the resulting withdrawal of the “free” copper wire provision for telecommunications.
The lukewarm response by both parties is interesting given that 84 percent of respondents in a recent Auspoll survey said housing affordability was either quite important or very important but only 16 percent believe the Coalition has a clear plan on housing affordability and Labor faring worse at only 13 percent.