Updated modelling: housing package estimated to cut 10,700 homes and push rents higher
Industry bodies including HIA and Master Builders Australia have released updated modelling on the Federal Budget housing package, finding it is estimated to cut 10,700 homes and push rents higher.
10,700 fewer homes estimated to be built as a result of the Federal Budget housing package.
Will the federal housing package actually reduce housing supply and hurt construction work?
Builders and tradespeople face reduced work pipelines if housing supply drops by 10,700 homes. Less construction means fewer contracts for builders, electricians, plumbers and other trades.
Key takeaways
- Major industry bodies released updated modelling critical of the Federal Budget housing package.
- The package is estimated to result in 10,700 fewer homes being built nationwide.
- Reduced housing supply is expected to push rents higher for Australians.
- Less construction activity could mean fewer jobs and contracts for tradies across all sectors.
Related
ATO ramp up of small business debt collection
Master Builders Australia has published a news item saying the ATO is stepping up its debt collection against small businesses. The text provided gives no further detail on the measures, timing or amounts.
Why it matters: Builders and other trade businesses with outstanding tax debts may face firmer ATO collection action, which could strain cash flow. Details are not in the source text, so check the ATO or Master Builders directly.
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.