Policy Recommendations
Recommendation 1
The Australian and State governments to each establish agencies devoted to regional housing supply and affordability. While the core purpose of these federal and state agencies is aligned, their respective remits should reflect the different roles and levers available at the different levels of government.
The Australian Government should appoint a Regional Housing Commissioner, supported by a dedicated Office, to lead and champion regional housing policy at the national level. The Commissioner should be a permanent member of the National Housing Supply and Affordability Council, ensuring regional needs are embedded in national decision-making.
Each State government should establish a dedicated regional housing agency within its respective housing departments to lead the design and implementation of the state’s regional housing policies and programs. The agency should adopt place-based approaches that address the specific challenges and opportunities across the state’s diverse regions.
Recommendation 2
The National Housing Supply and Affordability Council has 30 per cent regional representation.
Recommendation 3
The National Housing Accord to incorporate a target for regional Australia set at 40 per cent of the national target of 1.2 million homes. This equates to 480,000 new homes to be built in the regions. Each state to incorporate regional targets within its overall state targets for the number of homes to be built under the Accord.
Recommendation 4
The National Planning Reform Blueprint to widen the national vision of planning policy to include regional, rural and remote areas. This wider vision of planning policy should include common policy approaches, definitions and data sources across jurisdictions.
Recommendation 5
Australian Government spending measures in support of the National Housing Accord to incorporate targeting to regions, in recognition of the significant regional need and to address specific structural challenges.
Recommendation 5.1
The Australian and State governments to increase funding for enabling infrastructure, with specific programs targeted to regions, taking a needs-based approach.
Recommendation 5.2
The Australian and State governments to target funding for social and affordable housing to regions with specific programs, taking a needs-based approach. In smaller regions with acute needs, but a lack of local builders and developers, offsite modern methods of construction should be considered for new housing supply.
Recommendation 5.3
The Australian and State governments to refine and target home-buyer assistance to regions where overall home building activity is low, to address local barriers to finance. The assistance, whether in the form of government guarantees or shared equity loans, should apply to: new homes or major renovation projects; be large enough to close the gap between project valuation and project cost; and apply to all owner-occupiers (not just first home buyers).
Recommendation 5.4
The Australian and State governments to grow the skilled trade labour and built-environment professional workforce in regions through:
- regionally located trade training facilities and places.
- regionally located accredited planning degree places.
- increased skilled trade labour migration to regions.
Recommendation 6
The Australian and State governments to develop and implement industry policies that grow the capacity of regional construction businesses to deliver larger, more complex multi-unit housing projects. Key elements of the policy should:
- target construction skills and training.
- directly support industry participants’ access to finance for these projects through financing supports to increase project viability.
Recommendation 7
The Australian and State governments to increase and target funding for key worker housing projects in regions. These projects should also be designed to develop, where appropriate, the capacity of the local construction industry to deliver medium density housing and enabling infrastructure.
Recommendation 8
The Australian and State governments review impacts of biodiversity planning controls on new housing supply in regions, particularly as these relate to the feasibility of new housing projects. The review should also recognise the limited capacity of regions to deliver more housing supply though higher-density, multi-unit housing on infill sites.
Recommendation 9
Reform stamp duty to encourage a more efficient and higher utilisation of the existing dwelling stock. This is likely to be especially relevant in regions with ageing populations who are disincentivised to move out of large, underutilised homes into smaller homes due to the high transaction cost of stamp duty. Stamp duty reform can also reduce the cost of relocation for city dwellers moving to regional areas to fill job vacancies.
Recommendation 10
Official statistics to plug the following data gaps:
- Australian Bureau of Statistic (ABS) housing finance statistics should be made available at amore geographically granular level of detail.
- ABS Building Commencements and Completions data should be made available at a more geographically granular level of detail.
- State Building Commissions should make available statistics on the number of active licensed builders by license type at a detailed level of geographical granularity.