Fast approvals only add to housing construction logjam
Data from property research firm Cotality shows approvals could move higher in the coming months due to rezoning reforms and incentives for new builds coinciding with falling interest rates.
But rather than fix the shortage of homes, it could cause a problem for the construction industry by adding new projects to an already long list.
"It's like turning up the tap on a bath that is already full," said the analysis from head of research Eliza Owen.
It found delivery to be the problem, not approvals, with 219,000 homes under construction and completion times ballooning.
"The real bottleneck lies in the build phase, not planning reform," the analysis said.
The federal government's goal to build 1.2 million new homes in five years, adopted in August 2023, is thought of as unachievable by the industry.
"With completion times already above average, and construction costs elevated, it seems an odd time to be incentivising more dwelling approvals and commencements to the backlog of work to be done," the report stated.
Ahead of the Albanese government's national productivity summit later this month, the report calls for a move away from demand stimulation to sustainable delivery.
"Making homes faster and cheaper to build, while still maintaining quality, resilient homes is the key challenge for policymakers to focus on right now," the report reads.
Labor's massive election win has prompted union bosses to call for the government to revisit potential changes to negative gearing and capital gains tax concessions.
But proposals to scale back the tax deduction is tricky for the government, after Labor took reforms for negative gearing to the 2019 federal election and lost.
Negative gearing allows investors to claim deductions on losses and the capital gains tax discount halves the tax paid by Australians who sell assets owned for 12 months or more.
The analysis says if governments are serious about delivering on the housing target, they "must focus on building capacity, lifting productivity, and ensuring every approved home actually gets built".
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News AU
12 minutes ago
- Sky News AU
Jeremy Rockliff reappointed as Tasmania Premier after election
Jeremy Rockliff will continue to serve as Tasmania's Premier after being reappointed following a hung parliament in the state's election in July. The state was forced into its second election in less than 18 months after a no-confidence motion against Mr Rockliff was moved in the state's parliament. Labor leader Dean Winter attempted to capitalise on a worsening state budget, which forecast four consecutive deficits and massive debt, by forcing Mr Rockliff's hand in calling the snap election. But the two major parties stayed stagnant, with the Liberals securing 14 seats and Labor mustering 10. Needing to negotiate with the crossbench, Mr Rockliff travelled to see Governor Barbara Baker to seek reappointment to the post on Wednesday. Mr Rockliff told the governor he expected to command confidence and supply from the Parliament. The governor then determined to reappoint Mr Rockliff breaking the more than three-week deadlock. 'The appointment of the Premier, whilst a reserve power, is restricted by constitutional convention,' Her Excellency said. 'In a hung parliament, where no one clearly holds the confidence of the majority of the House of Assembly, the incumbent has the right to remain in office in order to test the numbers in the House of Assembly and for Parliament to have the final say in who should be Premier. 'I consider the convention of incumbency applies in the current circumstances. I shall reappoint the Premier. 'It is better for confidence to be determined inside and not outside the Parliament. 'This will be done promptly, as the Premier will face the Parliament when it is recalled on Tuesday 19 August 2025.' Mr Rockliff and his cabinet will be sworn in at Government House in Hobart next week. Parliament will return on August 19. Mr Rockliff's appointment comes without firm agreements with members of the crossbench. It could trigger another no confidence motion as soon as Parliament returns, testing his authority. If the Premier fails to secure confidence, Tasmania could be forced back to the polls for the third time in 18 months. Mr Rockliff said he would push on despite securing a deal with crossbench MPs after securing the most seats at the election. 'It's my intention to ask for a recommissioning of our government,' he said before visiting the Governor. 'The Tasmanian people have elected a minority parliament. 'I've always said that we need to accept the will of the Tasmanian people, and we will do so, and it's important that everyone in parliament has their say. 'I would welcome more formal agreements of confidence and supply should individual members wish to do so. 'My understanding is that it is not necessary in terms of being recommissioned in a minority.'
The Australian
an hour ago
- The Australian
PM restates support for two-state solution in call with French President
Anthony Albanese has restated support for a two-state solution in a call with the world leader leading the push to recognise a Palestinian state next month. Anthony Albanese has restated Australia's support for a two-state solution for Israel and Palestine in a phone call with Emmanuel Macron. The French President was the first major Western leader to conditionally commit to recognising a Palestinian state at the UN General Assembly (UNGA) next month amid starvation in Gaza. The UK and Canada soon followed, sparking speculation that Australia could be next. The Prime Minister has neither committed to nor ruled out doing so, but his government has acknowledged the global 'momentum' for Palestinian statehood. 'The leaders spoke about the crisis in Gaza and their ongoing commitment to getting aid to civilians,' according to a readout of the call put out on Wednesday. 'Both leaders discussed their longstanding support for a two-state solution.' The readout said they also 'discussed action on climate and France's support for Australia's joint bid to host COP31 in partnership with the Pacific' as well as 'the importance of finalising the Australia-EU Free Trade Agreement'. 'The leaders agreed to stay in close touch and meet again at the United Nations General Assembly in September,' it said. Mr Macron also spoke to New Zealand Prime Minister Christopher Luxon overnight. Remarking on the calls, the French leader said Paris, Canberra and Wellington were all on the same page. 'Australia, New Zealand, and France share the same commitment to the immediate release of all hostages held by Hamas, the large-scale and unhindered delivery of humanitarian aid to the Gaza Strip, and the implementation of a political solution based on two states, living side by side in peace and security,' he posted on social media. 'We are working together towards these goals ahead of the upcoming Conference on the Two-State Solution to be held in New York during the UN General Assembly.' Mr Albanese held a similar call with Mahmoud Abbas, the president of the Palestinian Authority, earlier this week. — Emmanuel Macron (@EmmanuelMacron) August 5, 2025 In their pledges to recognise Palestine, France, the UK and Canada all condemned Hamas' October 7 attacks on Israel in 2023 and said the Palestinian Islamist group cannot play a role in Gaza's governance. Though, all have also made clear the civilian suffering in the war-ravaged strip cannot continue either. UK Prime Minister Keir Starmer said he would go ahead with recognition if Israel did not loosen its chokehold on aid flowing into Gaza, where the death toll from starvation has climbed to nearly 200, according to local health officials. Foreign Minister Penny Wong on Tuesday repeated the Albanese government's condemnation of Hamas and said there was an 'unique opportunity in the international community to isolate and diminish' it while giving life to a Palestinian state. Meanwhile, Israeli media has reported Israeli Prime Minister Benjamin Netanyahu is mulling a complete occupation of Gaza. Such a move would put deal a major blow to progress on Palestinian statehood. NewsWire Nathan Buckley admits the Melbourne coaching job presents a 'compelling case' for his return but needs convincing to abandon his comfortable media role. Breaking News The Storm famously sent Harry Grant to the Wests Tigers in a move that helped him develop immensely. Now they could do something similar.
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
Mark Latham escapes condemnation over behaviour in parliament, at least for now
Rogue MP Mark Latham has escaped attempts by the NSW government to condemn his behaviour in parliament after he was accused of abusing parliamentary privilege to reveal secret information. Labor's leader in the upper house, Penny Sharpe, moved to condemn Latham, arguing he revealed contents of a Law Enforcement Conduct Commission (LECC) report which was under a non-publication order, and shared medical information relating to MP Alex Greenwich, which the NSW Civil and Administrative Tribunal intended to be kept confidential. 'The Honourable Mark Latham, MLC, has done and said things that challenge the work we all do to better the culture of this place, and he has abused the privileges and immunities that we hold,' Sharpe said. The LECC report on Operation Askern detailed an investigation into the Commissioner's Gin scandal, after then-police commissioner Karen Webb used public funds to purchase alcohol from a distillery owned by one of her friends to be used as gifts. The contents of the report were made available to MPs with an order preventing its contents from being released to the public. The government failed to get the support needed to pass the motion condemning Latham, instead the Coalition and the Greens voted to delay the debate until October. The house agreed to refer Latham to the powerful privileges committee first. The committee will also look into the conduct of Latham and other members towards MPs and staff and the progress parliament is making towards a safer workplace culture, after it was revealed through leaked messages that Latham had taken secret photographs of female MPs while in the chamber. Loading Liberal Susan Carter, the subject of one of the photographs, said she would not support a motion condemning Latham until the committee had reported back. Latham used the fiery debate to rehash grievances he has against his political nemesis Greenwich, as well as Webb, Labor MPs and the media.
