Housing industry urges Government to keep SMSF finance flowing to new homes
The housing industry wants the government to keep SMSF borrowing for new home construction while the impact of any restrictions is assessed. They argue cutting this finance option could hurt housing supply.
Will SMSF borrowing restrictions reduce demand for new home builds in Australia?
Builders and developers could see fewer clients able to fund new home construction, reducing demand and project pipelines for tradespeople across the industry.
Key takeaways
- Housing industry is urging the government to preserve SMSF borrowing rights for new home construction.
- New borrowing restrictions on SMSFs could reduce a key funding source for residential building projects.
- Industry wants an impact assessment completed before any changes to SMSF lending rules take effect.
- Reduced SMSF investment in new homes could shrink the pipeline of work for builders and tradies.
Related
Construction needs an effective enforcer not a paperwork obsession
The Housing Industry Association (HIA) warns that proposed national construction standards and new procurement rules miss the mark. It says the measures land hardest on home builders and argues for an effective enforcer rather than more paperwork.
Why it matters: Home builders and small residential contractors could face extra compliance paperwork and procurement requirements, adding admin time and cost to jobs without necessarily lifting building quality.
Potential Commonwealth Standards for the Construction Industry
The Housing Industry Association (HIA) says it backs a lawful, safe, productive and sustainable construction industry and has long called for structural reform. It says the consultation on potential Commonwealth standards proposes several measures it is concerned about.
Why it matters: Commonwealth standards could add new compliance requirements for builders and subcontractors across residential construction. The article gives no detail yet, so the practical impact on trades is unclear.
Secure Australian Jobs Framework
The article argues that residential building and its supply chains should be exempt from the Secure Australian Jobs Framework and any related procurement obligations. It says government effort should go towards improving productivity instead.
Why it matters: Builders and the trades working in residential construction could avoid extra procurement obligations and compliance work if the exemption is granted. Otherwise, supply chain and tendering requirements may change.