HIA’s State Election Priorities for our Industry

For the past couple of months in the lead up to the state election the HIA has been circulating our 10 point plan for an incoming government.

Our message is that Victoria’s new home building industry must be a priority to ensure we can meet the future needs of all Victorians.

Whoever wins government in November needs to adopt policies that will keep home ownership within the reach of Victorians. This will require significant reform and will need to deal with the reality of higher house prices, rising interest rates and a lack of land across Victoria’s key metropolitan and regional areas.

HIA’s 10-point plan and policy imperatives have been aimed at tackling housing affordability and putting more Victorians into their own home.

“HIA’s 10-point plan and policy imperatives have been aimed at tackling housing affordability and putting more Victorians into their own home.”

Central to the HIA’s policy imperatives is improving the supply of housing, which must be a priority for an incoming government. This will require a multi-pronged approach including bringing more land to market, planning system reforms and the appointment of a Minister for Home Building.

A dedicated Minister would be responsible for all legislation impacting the residential building industry to ensure the interests of industry and consumers are appropriately coordinated and addressed.

Victoria currently has a shortage of ‘shovel-ready’ blocks of land, and if sustained, will see housing costs rise even further. Land supply in metropolitan Melbourne continues to be constrained by the urban growth boundary. It’s time for a sensible review of the boundary and its potential expansion to meet future demand for housing.

Increased land supply will help to improve affordability but freeing up more land alone won’t be enough.

“Increased land supply will help to improve affordability but freeing up more land alone won’t be enough.”

The next Victorian Government must reduce the tax burden carried by new home buyers and property owners which currently accounts for more than half the State’s income.

To make home ownership a reality for more Victorians, we must reduce the amount of money they’re paying into government coffers and increase the amount they’re able to pay towards the cost of a more affordable home.

Melbourne home buyers pay nearly 40 per cent of the cost of a new house and land package in taxes, fees, and charges – locking thousands of Victorians out of home ownership.

“Melbourne home buyers pay nearly 40 per cent of the cost of a new house and land package in taxes, fees, and charges – locking thousands of Victorians out of home ownership.”

Victorians also continue to pay the highest rate of stamp duty in Australia, imposing a significant financial burden on all home purchasers.

Depending on how the sale process is undertaken, stamp duty can apply multiple times to a newly built home.

Layering tax upon tax on homebuyers and the housing industry puts pressure on all parts of the housing market and traps people in the private rental market instead of lifting them into home ownership.

“Layering tax upon tax on homebuyers and the housing industry puts pressure on all parts of the housing market and traps people in the private rental market instead of lifting them into home ownership.”

An incoming state government needs to maintain a focus on home building. It is the backbone of the Victorian economy with almost 300,000 people engaged in construction jobs. Policies need to be focused on keeping the residential building sector strong and allowing Victorians the opportunity to achieve home ownership.