The Housing Institute of Australia has released a Housing Policy Scoreboard, ranking each state and territory on the effectiveness of state government policies to reach housing supply targets.
The scoreboard considers ten critical housing supply policies and mechanisms that the Housing Institute of Australia (HIA) has stated would significantly aid governments to achieve their National Housing Accord housing supply targets between 2024–2029. According to the HIA, the policies and mechanisms have either proven to be successful or are very likely to be successful in increasing housing supply.
The ten criteria that each of the states and territories were assessed against include:
- New housing targets
- First homeowner grant
- First home buyer stamp duty exemption
- First homebuyer shared equity scheme
- Stamp duty exemption on new housing
- Fast-tracked housing development approval capability
- Fast-tracked land release program
- Land supply dashboard
- State-based investment in residential building trades
- Social housing targets and investment.
South Australia fared best out of all states and territories, scoring a nine out of ten. According to the report, “The state has employed an advantageous blend of planning innovation, skills investment and housing affordability policies to position itself as best as possible to attain its 5-year new housing target” of 83,811 homes. Notable mechanisms implemented by the South Australian government include the ability to lodge planning applications online and the adoption of AI to automate development approvals for simple applications that meet prescriptive criteria. The report explained that these actions “have gone some way in helping to streamline approval pathways, though some further refinements are required.”
Western Australia closely trailed South Australia, achieving a score of eight out of ten. The report stated that the WA government has prioritised planning reform during and after the pandemic, focusing on reducing red tape for building approvals. Additionally, the state is incentivising diverse dwelling options by offering density bonuses and increasing development housing yields, regardless of existing zoning regulations.
On the opposite end of the spectrum, the Australian Capital Territory received the lowest score of four out of ten. The report noted, “The ACT’s housing roadmap is deficient and looks unlikely to promote sustained strength in new home supply over the next five years. While the territory government states that over the next five years it is planning to release a range of greenfield and infill sites to support the development of 21,059 new homes (its accord target), there is a void of prudent policy to streamline key planning processes.”
Victoria, New South Wales and Tasmania each received a score of six out of ten. With regards to Victoria, the report observed that the $5.3 billion Big Housing Build, inherited from the Andrews government, remains a commendable initiative aimed at delivering 12,000 new social and affordable homes throughout metropolitan and regional areas. The HIA also commended the government’s “recent announcement of a twelve-month cut to stamp duty for all off-the-plan units and townhouses,” which, the institute said, will be “helpful in boosting supply of the medium to high density homes.” However, despite these long-term measures to promote additional housing supply, the HIA expressed concern that there appears to be a prevailing agenda to raise taxes on housing rather than reduce them, pointing to the state government’s implementation of a land tax surcharge, an absentee owner surcharge, a windfall gains tax and a short stay levy.
The report described NSW as “perennially a one step forward, one step back jurisdiction.” The state is implementing mechanisms to expedite development approvals and has released a new Statement of Expectations Order that establishes timeframes for councils on development assessment, planning proposals and strategic planning. However, the report noted that the state “has also missed opportunities to implement policies targeting the sorely needed boost to greenfield land supply, particularly around the urban fringe of Greater Sydney.”
In Tasmania, the report noted that while the state government has committed extensive policy resources to its social housing agenda, it is simultaneously lacking initiatives for non-subsidised private rental and home ownership markets. The report highlighted the necessity for additional initiatives to expedite the release of greenfield land accross the state. A $30 million headworks holiday land release grant program has been established to incentivise private landowners to release lots by assisting with the cost of installing the headworks. However, the report stated that such a program is not a substitute for the expedited release of more greenfield land for residential development.
Queensland and the Northern Territory both scored five. Regarding Queensland, the report stated, “Clearer strategic direction and the right statutory tools that cut red tape and enable faster decisions so higher density housing can be approved in a timely manner must be implemented. Urgent planning reform is needed, requiring Brisbane and other major cities to identify and facilitate appropriate infill locations. The state has proposed a new state-facilitated development team [which] intends to streamline decisions and quickly resolve planning and infrastructure issues that are delaying new homes. In principle, this is a step in the right direction, however development approvals continue to resemble a timeframe of 75 days which is not conducive to the low-cost expedient delivery of new homes.”
According to the report, the Northern Territory offers the most affordable first home owner grant in the nation, providing $50,000 to first-time buyers for allocation towards the purchase or construction of their first home. While this is a commendable initiative, the report noted that the “NT planning system lacks strong strategic direction and objectives to guide residential development. Concerted action is needed, such as improved implementation of planning assessment guidance documents, such as Designing Better, to better facilitate streamlined approvals.” The report recommended that the territory could also “benefit from a land development strategy that adequately identifies future land supply.”
To read the full report, visit the Housing Institute of Australia website.
Source: Architecture - architectureau
