Pre-Budget Submission 2022-23

UDIA National has lodged its pre-budget submission for FY 2022-23.

UDIA National continues to support the robust strategy pursued by the Federal Government over the past two years to sustain Australia’s economy through the COVID-19 pandemic and position the nation for a strong post-pandemic recovery.

Both population growth and property development & construction are vital elements for the Australian economy. Development & construction is an engine room of the economy and critical to recovery of productivity, delivering some 7.5% of Australia’s GDP.

Historically thin and continually declining supply pipelines, together with pandemic-driven material and labour shortages means that Australia is set to experience further deterioration in housing affordability unless the market is primed now to stimulate supply to meet that demand. As population growth returns to normal levels – which is critically necessary to underpin labour growth and employment levels, housing demand will only increase further.

Adopting UDIA National’s recommendations will further underpin Australia’s recovery after two incredibly challenging years by addressing critical underlying issues that have been allowed to foment for many years prior.

These include:

  1. Turbocharge Housing Supply and Choice – measures to incentivise land/housing supply targets, better taxation reform and bolstering NHFIC’s mandate to create affordable and social housing.
  2. Durable Strategic Planning and Infrastructure Delivery – measures to better plan and coordinate infrastructure and cities.
  3. Streamline Environmental Approvals – measures to improve the administration and effectiveness the Environmental Protection and Biodiversity Conservation Act (EPBC).
  4. Make Planning Systems Work Effectively – measures that give NHFIC a mandate to measure performance of State and Local planning and regulatory systems, and with the Federal Government to incentivise planning targets.
  5. Post-Pandemic Population Planning – measures to plan and coordinate net overseas migration that close the population growth gap caused by the pandemic.
  6. Keep Credit Available – measures to expand the First Home Loan Deposit Scheme and design a government finance reference group that monitors the health of the market.