Latest news with #NationalHousingAccord
Yahoo
16-07-2025
- Business
- Yahoo
Figures make a mockery of Treasurer's claim
Australia is falling further behind its ambitious 1.2 million new home target, as the number of dwellings started, completed or under construction has slipped. According to Australian Bureau of Statistics figures, 27,663 new houses were built in the March quarter, down 1.3 per cent, while new private sector housing came in at 15,190, a drop of 9.3 per cent. When combined, 43,517 homes were built in the March quarter, down by 4 per cent on the December quarter. Last year, the federal government set an ambitious 1.2 million new-home target in five years under the National Housing Accord. In order to achieve this, Australia needs to build 60,000 homes a quarter. In brighter news, there was a 14 per cent lift in new houses started in March to 47,645. Property Council group executive policy and advocacy Matthew Kandelaars said Wednesday's data was further proof Australia needed to be building more homes. 'Progress against our housing targets was never going to be linear, but we've reached the point where we need to hit housing delivery in top gear just to keep pace, let alone get ahead,' Mr Kandelaars said. 'Official data on completions for the March 2025 quarter, nine months into the National Housing Accord, show we're running 18,147 homes behind target. 'It takes more than a year to build a home and more than three years to build an apartment project. Yet another quarter of poor numbers means more disappointment for future homebuyers and renters.' The data comes days after partially unredacted files were released to the ABC through a freedom of information request showing that Australia's National Housing Accord would 'not be met'. While Labor has committed to building 1.2 million well-located homes in the five years to June 30, 2029, the target is already 55,300 homes behind following its first year of operation. Despite the slow start, Treasurer Jim Chalmers backed Labor's ability to reach the target, adding that he was 'pretty relaxed' about the accidental FOI slip. 'Under current trajectories, we would fall short, but that doesn't mean that between now and over the course of the next four years that we can't consider ways and work with the states and territories and others, local governments and others, on ways to build more homes,' he told reporters on Monday. 'It's not the worst thing from time to time for it to be understood in the broader community that this will be a difficult target to meet. 'But if we all do our bit, we all play our part, as the Commonwealth has been willing to play, then we can build the homes that people desperately need.' Acting Coalition housing spokesman James Paterson said the advice from Treasury 'confirmed what Australians already know'. 'Labor will fail to build the 1.2 million new homes they promised,' he said. 'Under the former Coalition government, Australia built an average of 190,000 new homes per year. Under Labor, that figure has dropped to barely 170,000. To meet their own housing target, Labor needs to build 250,000 new homes annually. 'Instead of building housing, Labor are obsessed with building housing bureaucracies.' Mr Kandelaars said the nation's property industry remained ready to deliver but was being held back by settings that deter investment, slow approvals, high development costs and post-approval roadblocks. 'We're building homes half as fast as we were 30 years ago. That's not just a housing issue but a productivity problem,' Mr Kandelaars said. 'Next month's Economic Reform Roundtable hosted by the Treasurer is a chance to put housing delivery at the heart of the national productivity agenda, which means getting investment settings right and focusing on better, smarter and more efficient planning and environmental approvals.' Sign in to access your portfolio
News.com.au
16-07-2025
- Business
- News.com.au
Australia falls further behind ambitious 1.2 million home target
Australia is falling further behind its ambitious 1.2 million new home target, as the number of dwellings started, completed or under construction has slipped. According to Australian Bureau of Statistics figures, 27,663 new houses were built in the March quarter, down 1.3 per cent, while new private sector housing came in at 15,190, a drop of 9.3 per cent. When combined, 43,517 homes were built in the March quarter, down by 4 per cent on the December quarter. Last year, the federal government set an ambitious 1.2 million new-home target in five years under the National Housing Accord. In order to achieve this, Australia needs to build 60,000 homes a quarter. In brighter news, there was a 14 per cent lift in new houses started in March to 47,645. Property Council group executive policy and advocacy Matthew Kandelaars said Wednesday's data was further proof Australia needed to be building more homes. 'Progress against our housing targets was never going to be linear, but we've reached the point where we need to hit housing delivery in top gear just to keep pace, let alone get ahead,' Mr Kandelaars said. 'Official data on completions for the March 2025 quarter, nine months into the National Housing Accord, show we're running 18,147 homes behind target. 'It takes more than a year to build a home and more than three years to build an apartment project. Yet another quarter of poor numbers means more disappointment for future homebuyers and renters.' The data comes days after partially unredacted files were released to the ABC through a freedom of information request showing that Australia's National Housing Accord would 'not be met'. While Labor has committed to building 1.2 million well-located homes in the five years to June 30, 2029, the target is already 55,300 homes behind following its first year of operation. Despite the slow start, Treasurer Jim Chalmers backed Labor's ability to reach the target, adding that he was 'pretty relaxed' about the accidental FOI slip. 'Under current trajectories, we would fall short, but that doesn't mean that between now and over the course of the next four years that we can't consider ways and work with the states and territories and others, local governments and others, on ways to build more homes,' he told reporters on Monday. 'It's not the worst thing from time to time for it to be understood in the broader community that this will be a difficult target to meet. 'But if we all do our bit, we all play our part, as the Commonwealth has been willing to play, then we can build the homes that people desperately need.' Acting Coalition housing spokesman James Paterson said the advice from Treasury 'confirmed what Australians already know'. 'Labor will fail to build the 1.2 million new homes they promised,' he said. 'Under the former Coalition government, Australia built an average of 190,000 new homes per year. Under Labor, that figure has dropped to barely 170,000. To meet their own housing target, Labor needs to build 250,000 new homes annually. 'Instead of building housing, Labor are obsessed with building housing bureaucracies.' Mr Kandelaars said the nation's property industry remained ready to deliver but was being held back by settings that deter investment, slow approvals, high development costs and post-approval roadblocks. 'We're building homes half as fast as we were 30 years ago. That's not just a housing issue but a productivity problem,' Mr Kandelaars said. 'Next month's Economic Reform Roundtable hosted by the Treasurer is a chance to put housing delivery at the heart of the national productivity agenda, which means getting investment settings right and focusing on better, smarter and more efficient planning and environmental approvals.'
Perth Now
16-07-2025
- Business
- Perth Now
Figures make a mockery of Treasurer's claim
Australia is falling further behind its ambitious 1.2 million new home target, as the number of dwellings started, completed or under construction has slipped. According to Australian Bureau of Statistics figures, 27,663 new houses were built in the March quarter, down 1.3 per cent, while new private sector housing came in at 15,190, a drop of 9.3 per cent. When combined, 43,517 homes were built in the March quarter, down by 4 per cent on the December quarter. Last year, the federal government set an ambitious 1.2 million new-home target in five years under the National Housing Accord. In order to achieve this, Australia needs to build 60,000 homes a quarter. Australia is building less than the 60,000 homes a quarter it needs. NewsWire/ Gaye Gerard Credit: News Corp Australia In brighter news, there was a 14 per cent lift in new houses started in March to 47,645. Property Council group executive policy and advocacy Matthew Kandelaars said Wednesday's data was further proof Australia needed to be building more homes. 'Progress against our housing targets was never going to be linear, but we've reached the point where we need to hit housing delivery in top gear just to keep pace, let alone get ahead,' Mr Kandelaars said. 'Official data on completions for the March 2025 quarter, nine months into the National Housing Accord, show we're running 18,147 homes behind target. Housing construction has slowed in recent years. NewsWire / Gaye Gerard Credit: News Corp Australia 'It takes more than a year to build a home and more than three years to build an apartment project. Yet another quarter of poor numbers means more disappointment for future homebuyers and renters.' The data comes days after partially unredacted files were released to the ABC through a freedom of information request showing that Australia's National Housing Accord would 'not be met'. While Labor has committed to building 1.2 million well-located homes in the five years to June 30, 2029, the target is already 55,300 homes behind following its first year of operation. Despite the slow start, Treasurer Jim Chalmers backed Labor's ability to reach the target, adding that he was 'pretty relaxed' about the accidental FOI slip. Treasurer Jim Chalmers says it's an ambitious target. NewsWire / Martin Ollman Credit: News Corp Australia 'Under current trajectories, we would fall short, but that doesn't mean that between now and over the course of the next four years that we can't consider ways and work with the states and territories and others, local governments and others, on ways to build more homes,' he told reporters on Monday. 'It's not the worst thing from time to time for it to be understood in the broader community that this will be a difficult target to meet. 'But if we all do our bit, we all play our part, as the Commonwealth has been willing to play, then we can build the homes that people desperately need.' Acting Coalition housing spokesman James Paterson said the advice from Treasury 'confirmed what Australians already know'. 'Labor will fail to build the 1.2 million new homes they promised,' he said. 'Under the former Coalition government, Australia built an average of 190,000 new homes per year. Under Labor, that figure has dropped to barely 170,000. To meet their own housing target, Labor needs to build 250,000 new homes annually. 'Instead of building housing, Labor are obsessed with building housing bureaucracies.' Mr Kandelaars said the nation's property industry remained ready to deliver but was being held back by settings that deter investment, slow approvals, high development costs and post-approval roadblocks. 'We're building homes half as fast as we were 30 years ago. That's not just a housing issue but a productivity problem,' Mr Kandelaars said. 'Next month's Economic Reform Roundtable hosted by the Treasurer is a chance to put housing delivery at the heart of the national productivity agenda, which means getting investment settings right and focusing on better, smarter and more efficient planning and environmental approvals.'
Daily Telegraph
15-07-2025
- Business
- Daily Telegraph
Overseas arrivals into Australia fuel new concerns over housing supply
Australia has recorded another month of record long-term overseas arrivals – fresh off the back of announcements that the country is falling further behind critical housing requirements for the coming years. New ABS Overseas Arrivals and Departures data for May 2025 released Tuesday showed net permanent and long-term arrivals in May 2025 were 33,230. This was the highest May net arrival number on record, surpassing the previous record of 31,310 in 2023 by 6 per cent, according to analysis of the figures by policy think tank the Institute of Public Affairs. Net permanent and long-term arrivals in the year to May 2025 were 245,890 – also the highest on record, IPA analysis revealed. Many of the arrivals were international students. MORE: Hidden cost bleeding Aussies of $71 a day MORE: Aus suburbs where your home makes more than you It should be noted that these figures are different to the ABS measure of permanent migration intake, but do point to the amount of strain being put on the housing market – especially the rental market. The figures come as housing approval data indicated the country was already 55,000 homes behind target just one year into the National Housing Accord plan to build 1.2 million new homes by the end of the decade. The shortfall will mean recent arrival numbers could put further strain on the current supply of housing, experts said. IPA deputy executive director David Wild said recent migration was 'excessive' and was 'exacerbating the housing and rental crises being experienced by Australians and new migrants alike'. 'Migration has played a significant role in pummelling Australia's economic productivity (and) creating extended periods of negative per capita economic growth,' Mr Wild said. Mr Wild's comments have followed leaked Treasury advice showing the federal government's National Housing Accord target of building 1.2 million homes between 2024 and 2029 will not be met. 'Despite the fact that the federal government has failed to deliver on a single target under its Accord, it continues to ramp up migration intakes, at a time when the nation is simply not building the houses it needs to accommodate a rapidly rising population,' Mr Wild said. 'Migration-induced demand injected into the housing market, combined with sluggish supply – due to red tape and competition from bloated government infrastructure projects – have created a perfect storm of too many new people and not enough new homes.' PPD Real Estate economist Dr Diaswait Mardiasmo said overseas long-term arrivals figures underlined why the planning system for new housing needed to be turbocharged. 'Projects are taking quite a while to be approved, due to red tape and other factors, and still quite expensive to ensure that it comes out of the ground,' she said. 'These figures stress the need for more housing, and correct type of housing at that, to accommodate more people into the country.' Dr Mardiasmo said renters would be most affected by the influx of new arrivals. 'Most international migrants who come to the country are likely to be renters – therefore this will put more stress on the rental market,' she said. Mr Wild clarified that the issue was down to numbers and how prepared the country was to accommodate growth. 'Australia is a tolerant and welcoming society. However, migration intake must be properly planned,' he said. The IPA pointed to the federal government's net overseas migration budget forecast for FY25 (335,000 arrivals). The think tank claimed this figure has already been exceeded by 88,990 net permanent and long-term arrivals, with another month of data still to be published. Mr Wild said there would be economic implications: 'Australians are already struggling with rapidly rising house prices and rents.'
Sydney Morning Herald
09-07-2025
- Business
- Sydney Morning Herald
Pay more for your water or boil it? The unpalatable choice behind Sydney's water woes
In March 2021, as 'one-in-100-year' floods across Sydney's eastern seaboard followed hard on bushfires and drought, Sydney Water and the then-Coalition government were preparing for the worst: telling some of the 5 million users to boil their drinking water to ensure its safety. 'This is something you'd only expect in the Third World,' said one source, speaking on the condition of anonymity to detail private deliberations. The narrowly avoided boil water notice, exceedingly rare for a state capital, would have been the first in Sydney since 1998, when a citywide warning was issued after pathogens that can cause nausea and severe diarrhoea were detected in supply from Macquarie Street to Palm Beach. Now, Sydney Water has begun briefing stakeholders that a draft decision by pricing regulator IPART, slashing the state-owned utility's planned capital expenditure by 35 per cent, or $5.9 billion, again raises the risk of Sydneysiders having to boil water during extreme rainfall events. The problem: the state-owned corporation funds infrastructure upgrades through raising water bills, an unpalatable choice for any government, and Sydney Water was proposing a 50 per cent increase over five years. NSW Premier Chris Minns wrote to IPART in August urging it to make 'cost-of-living impacts' a first-order consideration. Released in May, IPART's draft determination proposed limiting household bill rises to 23 per cent. The final decision is expected in September, with increases taking effect on October 1. Experts and peak bodies say the fallout will be twofold: reduced expenditure will limit the renewal of ageing pipes, plants and sewers with potentially disastrous consequences, and investment in new infrastructure will not be enough to support NSW's commitment to build 263,000 homes across Sydney Water's network by 2029. The question for bill payers is this: should we get used to paying more for water to secure its supply now, or risk passing on the cost, and possible catastrophe, to future customers? And in a housing crisis, Sydney Water and its stakeholders are asking why the government and IPART have pulled the handbrake on critical infrastructure for the construction of homes. Support for housing growth Housing supply is at the centre of Sydney Water's price proposal – the areas it covers will contribute most of the state government's commitments under the National Housing Accord. Before this year's budget, NSW Treasurer Daniel Mookhey enthused that the next 10 years would be about delivering the 'pipes and poles' for much-needed housing, saying the government's 'rule of thumb' was that anything former Labor premier Neville Wran built in the 1970s and '80s would be replaced. But the 2025-2026 budget did not deliver any significant funding to make up the expenditure reduction proposed by IPART's draft determination. Many of the experts interviewed for this article said the Minns government's housing targets were not achievable with this reduced capital. Urban Taskforce chief executive Tom Forrest said IPART's proposal would deliver considerably less than 263,000, or even the 191,000 he considered realistic in the current market. 'You can't say we've got a housing supply crisis, and it's the biggest challenge that our government faces, and then say: 'Oh, but we're not going to fund Sydney Water, and we're not going to allow [it] to raise the money through rates,' ' Forrest said. Without adequate funding for infrastructure, building houses in growth areas would be irresponsible, said Stuart Khan, head of civil engineering at the University of Sydney. 'We definitely don't want to get into a situation where wastewater infrastructure lags behind housing infrastructure. We've seen that happen in parts of Sydney,' he said. Inner Sydney councils including Woollahra have already expressed concern about a possible strain on water infrastructure from new dwellings in their objections to the government's low- and mid-rise housing reforms. But LGAs such as Wollondilly on Sydney's south-western fringe are evidence of the problems that could eventuate if water infrastructure does not keep up with housing demand. The shire contains two areas rezoned in 2023 as growth areas, in the towns of Wilton and Appin. In Wilton, where the population of 5000 is expected to multiply elevenfold by 2040, 12,000 lots without wastewater connections were rezoned as residential, meaning newly built houses now have their sewage trucked out regularly. Wollondilly Shire Mayor Matt Gould said work to temporarily expand a nearby treatment plant would only be able to service three-quarters of the lots once complete. 'We're willing to do our fair share to address the housing crisis, but we have an infrastructure crisis that is preventing the capacity to ... deliver.' So what has given the state government and IPART the confidence that housing can be delivered without the infrastructure? Outdated housing forecasts, said Property Council NSW executive director Katie Stevenson, noting IPART's draft decision is based on the Greater Sydney Housing Supply forecast in 2023, which 'came well before the NSW government's major suite of housing reforms' and predicted 172,900 homes over the six years to 2029. But the modelling underpinning IPART's draft report takes a more conservative approach, estimating 120,000 additional homes will be built by 2029. Sydney Water based its pricing proposal on the government's updated commitment. Peter Davies, a professor of sustainability at Macquarie University, said the state government and IPART had rewarded this foresight by leaving the utility 'between a rock and a hard place'. A spokesperson for the Minns government rejected the 120,000 figure, saying an assessment by Infrastructure NSW had found housing from its transport-oriented development and low- and mid-rise rezoning could be accommodated 'without the need for major new water infrastructure investment'. 'Sydney Water has a responsibility to ensure that its water infrastructure pipeline does not hold up the delivery of new homes,' they said. Upgrading Sydney's ageing water infrastructure Sydney's water infrastructure is, by modern standards, ancient. The CBD's Bennelong Point Sewerage System became the first planned system to dispose of Sydney's sewage in 1857, one year before the construction of London's modern sewerage system. It still handles stormwater today. But Khan said most infrastructure went in 50 years ago. 'It's coming up towards end of life, or it's gradually going to reach end of life over the next 20 or 30 years,' he said. Stuart Wilson, deputy director of the Water Services Association of Australia said no one, including IPART and the state government, was denying the need to renew this infrastructure. 'It's an argument about in this three- to five-year period or the next three- to five-year period … For a relatively small benefit from deferring ... what risks and costs are you running with the system?' Australian Water Association chief executive Corinne Cheeseman said the main Sydney Water accountabilities that IPART's decision considers are 'to deliver clean and safe drinking water, but also to maintain our sewer system so we can protect the environment'. 'Eighty per cent of our drinking water supply comes through Prospect Water Filtration Plant,' she said. 'It's a very good water filtration plant, but we've had significant flood events in the last three years.' Flooding can overwhelm the plant's capacity and lead to increased 'turbidity' or cloudiness, as debris and, recently, bushfire ash are washed into the water supply. In its price proposal, Sydney Water proposed upgrading pre-treatment at Prospect for $697 million. IPART's draft determination proposed deferring this program, noting that Prospect had survived historical adverse events without boil-water notices. 'Weather variation creates uncertainties that may challenge Sydney Water's ability to survive sequential adverse weather events as climate change advances,' the report conceded. Cheeseman said sewage spills from clogged pipes, resulting in environmental and drinking water contamination, could become common, especially given IPART's draft proposal slashed Sydney Water's plans to renew high-risk areas of the network by between $1 billion and $1.9 billion, or between 18 and 34 per cent. Ian Wright, a professor of environmental science at Western Sydney University who worked for Sydney Water between 1989 and 2006, said more frequent flooding and drought cycles brought on by climate change justified the utility's proposal to expand the use of the once-controversial Sydney Desalination Plant drinking water within its network. The plant, which cost the state government $1.9 billion to build before it was leased privately in 2012, can supply up to 15 per cent of Sydney's drinking water, but contributed 6.7 per cent of Sydney Water's drinking water in 2023-24, according to the utility's most recent annual report. IPART's draft decision deferred most of the involved expenditure to the next price proposal, leaving Sydney's drinking water reliant for now on the ageing Warragamba Dam, which spilled this month, but was at 43.9 per cent capacity as recently as 2019. 'We've gone into a flooding cycle, but we will go back into a dry cycle ... Our last big addition to the water supply was Warragamba ... It was completed in 1960.' Who should bear the cost? Under Sydney Water's model, customers cover most capital expenditure on renewal and growth of infrastructure. Most of the experts interviewed for this article agreed water bills had been too low for too long. Simon Fane, a UTS associate professor who advises water utilities and governments nationwide, characterised the problem as 'multiple layers of people not wanting to put up bills'. 'For the last few years, the water industry has known that things were going to get more expensive, but haven't really been flagging enough.' There was a real increase of only 18 per cent in the median typical residential bill in NSW in the 20 years to 2024. WSAA executive director Adam Lovell said customers who can pay, 'should pay, but those customers who can't, there are well-established and well-proposed programs to help them into the future'. In 2024-25, the government spent $130 million on concessions for pensioners and $17 million on exempt non-profit organisations serviced by Sydney Water, and $2 million on other hardship programs across Sydney Water and Hunter Water. Loading There are alternative methods of generating funds. Wilson said in the case of new infrastructure, funding could come from the developers who benefit, while funding for both growth and renewal could come directly from the government. The latter was an idea echoed by NSW opposition water spokeswoman Steph Cooke. Cooke criticised price increases for consumers, saying IPART's 'serious rebuke of Sydney Water's proposal' had spared them an 18 per cent rise, but 'left a $6 billion hole in Sydney Water's capital works program'. 'If Labor won't allow Sydney Water to manage its business properly then it needs to invest more from the state budget to support enabling infrastructure, like water, for new homes,' she said. Macquarie University's Davies had a more radical suggestion: to tax some of the value developers receive from rezoning, which would result in multimillion-dollar windfalls. 'Essentially, what we do in that [current] process is we privatise the profit,' he said. 'Multiple decades, not political cycles' With the Minns minority government looking to pick up seats at the 2027 election, the chance of Labor or the Coalition campaigning on higher water bills is small. Try telling residents without wastewater connections in Wollondilly, many of whom would not have been connected under Sydney Water's proposed works, to pay higher bills, Gould said. Loading But many, including Davies, raised concerns about the premier's proactive role in influencing IPART's decision, resulting in cheaper bills now, but risking generational inequity later. 'I see IPART making decisions that then have a political overlay of government … four-year horizons … where you might have a large utility that will think in multiple decades, not political cycles,' he said. Asked about the premier's influence, an IPART spokesperson said its draft decision recognised Sydney Water's need to increase revenue to deliver safe water and infrastructure to keep up with growth, but that 'customers should pay only what Sydney Water requires to efficiently deliver these services'. Fane is frank about Minns' letter: 'That might get us through the next election, but it won't get us through the next drought.'
