$900 million fund is expected to offer incentives
Master Builders Australia strongly supports the recent announcement by Federal Treasurer Jim Chalmers to re-establish the National Productivity Fund aimed at certain pressure points in building and construction.
The $900 million fund is expected to offer incentives for state and territory governments to streamline building approvals, commercial planning and zoning, and removing barriers to the uptake of modern construction methods.
Putting productivity back on the national agenda
CEO Denita Wawn said Master Builders has consistently called for incentives to support reform and lift productivity in the building and construction industry.
“Productivity in building and construction has been in decline for too long, with labour productivity down 18 per cent over the last decade.
“Productivity is more than a buzzword. When productivity is down, prices go up and our ability to build the homes and surrounding infrastructure communities need is slowed down.
“We thank the Treasurer for putting productivity back on the national agenda and listening to our concerns around barriers to building,” Ms Wawn said.
“We thank the Treasurer for putting productivity back on the national agenda and listening to our concerns around barriers to building,”
Last week Master Builders released analysis of latest build times which found that 15 years ago, it took on average 9 months to build a stand-a-alone house from approval to completion. Fast forward to today and it now takes 12.7 months – an increase of over 40 per cent.
Adding to housing initiatives already on the table
Ms Wawn added: “A focus on planning and incentives to support modern methods of construction or modular housing are some of the areas that could improve the outlook for housing.
“A number of governments around the country are looking to utilise modern methods of construction through the use of prefabricated or modular building products.
“This Fund will add to housing initiatives already on the table to support a faster roll out of housing across state and territories.”
With Parliament set to resume this week, Master Builders is urging the Opposition and crossbench to pass other housing policies that are currently being held up.
“Parliament also needs to pass bills scheduled for debate later this month to support the delivery of more housing for renters and help first home buyers get into the housing market.” Ms Wawn said.
“Build to Rent housing is seen as a growing asset class that could accelerate capacity for middle market home purchasers and supercharge rental housing supply but it requires the right tax settings for this to happen and this is what Build to Rent reforms in Parliament provide.”
