The Urban Development Institute of Australia (UDIA) strongly supports the Government’s ongoing commitment to address the nation’s lack of housing supply, through the targeted strategies announced in tonight’s Budget,” said Col Dutton, UDIA National President.
However, for the Government to reach its ambitious National Housing Accord target to build 1.2 million new homes over 5 years, 97% of its target will be delivered by private housing providers. They will need the support from all governments, if they are to significantly increase their delivery capacity, as they struggle to return to their pre-Covid productivity.
Market-wide solutions will be necessary to tackle a range of fundamental problems, particularly at a time when completions are in freefall. These include chronic lack of development ready land, significant shortage of skilled workers in the construction industry, accelerated cost of construction materials and inhibited project finance, all of which are holding back projects.
The 2024-25 Federal Budget measures, specifically those focused on supporting housing delivery are positive and include:
- Delivering funding for new and existing infrastructure projects including better transport for more accessible cities and suburbs and increased housing for students.
- $1 billion to get homes built sooner, with funding for states including to provide roads, services and parks, essential for additional housing supply.
- A new five-year National Agreement on Social Housing and Homelessness for states and territories to deliver crisis support and social housing.
- $90.6 million investment in boosting the number of skilled workers in the construction industry by training more tradies and construction workers through fee-free TAFE places.
- Expanding the Affordable Housing Bond Aggregator program.
- Bolstering community housing providers to support the first tranche of homes to be delivered under the Housing Australia Future Fund and National Housing Accord.
- More student accommodation.
- $1.9 billion over five years to increase maximum rates of Commonwealth Rent Assistance by a further 10 per cent.
UDIA encourages the Government to keep a laser focus on the implementation of the initiatives announced in tonight’s Budget, to stabilise house prices and rents and ease the increasing cost of living pressures. Particularly important are those measures that enable our industry to build the homes for the people of Australia, so that they realise the dream of home ownership,” said Col Dutton.
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Key Facts
- New housing investment of $6.2 billion in this Budget
- An extra $1 billion to states and territories to deliver new housing
- $1.9 billion for a 10 per cent increase in Commonwealth Rent Assistance
- Additional $1.9 billion in concessional finance for social and affordable homes
- An extra $423 million for the National Agreement on Social Housing and Homelessness
- $88.8 million to deliver 20,000 new fee-free TAFE places, including pre-apprenticeship programs, in courses relevant to the construction sector
- More student accommodation
- Infrastructure and transport for more accessible cities and suburbs
- An additional $16.5 billion for new and existing infrastructure projects across Australi over 10 years
- More money for every state: an additional $9.5 billion for projects over the forward estimates
- Future-proofing Western Sydney with $2 billion to improve transport networks and plan and build roads supporting housing developments
- $2.2 billion to enhance connectivity and increase accessibility and reliability of South East Queensland transport network
Media Enquiries:
Deanna Lane | Director, National Media & Communications | 0416 295 898 | media@udia.com.au