BCA call on Australian government to set new housing targets tied to population growth

Business leaders are urging the Australian government to consider a new approach to construction they say will ease the nation’s housing crisis. Find out what they’re proposing. Vote in our poll.

Business leaders are calling for Australia to adopt new house construction targets tied to population growth, speed up approval times and support more “build-to-rent” homes to make long-term renting viable amid the nation’s housing crisis.

With the Coalition and Greens threatening to derail the federal government’s $10 billion Housing Australia Future Fund in the Senate, paralysing Labor’s plan to build more than 30,000 social and affordable homes, the Business Council of Australia will on Monday release a new paper proposing how to fix housing affordability and access.

BCA chief Jennifer Westacott said “well managed migration” was good for the economy, but there needed to be a “clear plan” for building new homes and infrastructure that is aligned with population growth.

“We know there is simply not enough new homes being built to meet demand at a time when housing affordability is declining,” she said.

The report recommended the federal government set national “net-additional” dwelling targets over 10 years tied to population growth that would form the basis of state and territory targets and be linked to “financial incentives and penalties”.

Business Council of Australia CEO Jennifer Westacott says Australians support migration, but want adequate infrastructure planning to meet population growth. Picture: Jane Dempster

Treasurer Jim Chalmers says fixing housing supply is a better approach than a rent freeze. Picture: NCA NewsWire / Glenn Campbell

Areas with existing infrastructure, transport and services should be considered for “upzoning” to allow for more housing supply, while more nationally consistent approaches should be adopted to facilitate faster “low impact medium density” housing development.

The BCA report also recommended tax settings be focused to help drive new housing supply, with governments urged to “progressively remove stamp duty” and replace it with land tax to “remove friction” from the housing market.

“Initial priority should be given to strengthening programs focused on enabling downsizers by removing barriers to mobility,” the report said.

It comes as Treasurer Jim Chalmers prepares a travelling blitz to spruik Labor’s budget, starting in Sydney on Monday followed by Queensland, Victoria and South Australia.

Mr Chalmers defended the budget’s “comprehensive package” for housing, which included the $10bn fund, a rise in Commonwealth Rent Assistance and an extended $1.6bn housing and homelessness agreement with states.

The Business Council of Australia is calling for stronger new build targets and slashing red tape to address the nation’s housing crisis.

But he hosed down the Greens’ push for a rent freeze as part of ongoing negotiations over the housing fund.

“My thoughts are we’re better off trying to encourage supply,” he said.

“While doing that we’re trying to take some of the edges off the pressure people are feeling, that’s why I funded the biggest increase in rental assistance (in 30 years).”

Coalition treasurer spokesman Angus Taylor on Sunday rubbished Labor’s signature housing policy as a “Ponzi scheme”.

“Labor‘s housing policy will make almost no relevant contribution to the numbers required here of houses over the coming years,” he said.

“We need a proper plan, a managed approach to immigration. That is not what was offered in this budget.”