The biggest-spending budget in modern Australia’s history fails to address critical issues such as social housing and sustainable buildings and may not be enough to stop construction projects drying up, says the Australian Institute of Architects.
The Morrison government’s 2020 federal budget, released on 6 October, lays the groundwork for a private sector-led recovery, leaning heavily on asset write-offs, tax offsets and wage subsidies to encourage businesses to invest.
It includes an additional $7.5 billion for new infrastructure projects – largely roads and other transport infrastructure – but there is little in the way of new funding to directly boost construction in the residential sector.
“Only $0.6 million over four years from 2020-21 has been allocated to boost housing demand and support the residential construction industry in the face of plummeting activity levels,” said Institute CEO Julia Cambage.
Leading economists, community organizations and industry bodies, including the Institute, have all called on the government to spend big on publicly led social housing, but the budget includes no new funding in this area.
However, the budget included an extra $1 billion in low-cost financing to encourage private developers to build more affordable housing and $150 million over three years for the Indigenous Home Ownership Program.
The First Home Loan Deposit Scheme will also be extended to support an additional 10,000 first home buyers in 2020-21.
Cambage said these measures, while welcome, would not be enough to stave off the looming downturn in construction activity and that architects would be the first to feel the pain.
“Our members are at the very start of the construction supply chain,” she said. “Design is the first point from which all the other jobs flow, from engineers and surveyors to brickies, plumbers and painters.”
Multiple surveys of architecture firms have shown that billions of dollars worth of projects have been cancelled or put on hold during the pandemic. The Institute estimates that the architectural sector generates $6.1 billion in revenue and $1.1 billion of profit.
Cambage said an increased focus on large-scale legacy building would help achieve both the immediate stimulus needed for recovery while also delivering lasting benefit.
“Looking at past disasters demonstrates the enormous capacity construction has to rebuild economies and produce enduring public infrastructure,” she said.
“Brisbane’s Story Bridge and Somerset Dam are just two examples born of the Great Depression that are still serving the community to this day.”
Opposition leader Anthony Albanese has said were a Labor government in power, it would allocate $500 million to social housing repairs. He will deliver the budget reply speech on 8 October.
Source: Architecture - architectureau
