UDIA National: Helping Australia Bounce Back – A Plan for Economic Revival
A $4.5B housing stimulus fund that prompts homebuyers back into the market and a surge of housing and infrastructure construction serves as the centerpiece of a new plan from UDIA National to support the industry and Australia’s economic revival.
UDIA National today launched the economic revival plan to stimulate economic growth, jobs and wages by boosting housing construction following the economic effects of COVID-19.
The plan positions the industry as central to the nation’s economic prosperity and outlines a series of immediate steps for federal and state governments to take.
UDIA National is sending the plan and engaging with federal policymakers in a fresh push that complements the excellent work already being advanced at a state level.
“With the right mix of targeted incentives, regulatory reform and collaborative action by federal and state governments, the industry is key to super-charging the nation’s economic recovery,” said UDIA National President Simon Basheer.
“Now is the time to move from the trajectory of economic stabilisation to one of economic recovery with immediate federally led stimulus to re-kick start the housing market for the bounce back in jobs and economic activity.”
The main initiatives are:
- A housing stimulus fund worth more than $4 billion that includes:
- A ‘Home Starter” incentive for consumers of up to $50,000 dwelling construction that targets 60,000 new starts – at 10,000 per quarter – until the end of 2021
- Prioritising and accelerating infrastructure such as roads, water, sewerage and power that can be delivered within 12 months to support ‘shovel-ready’ housing – with the Commonwealth to table $1 billion to be matched by the states
- A ‘red tape reduction fund’ to reward states and territories that cut major project assessment timeframes in half and kick start new projects
- Commit to clearing the backlog of projects under assessment via the Environment Protection and Biodiversity Conservation (EPBC) Act, including:
- All projects that entered the assessment regime prior to July 1, 2019, be guaranteed a decision by July 1, 2020
- All projects that entered the assessment regime prior to January 1, 2020, be guaranteed a decision by October 1, 2020; and
- All projects that entered the assessment regime post January 1, 2020, be guaranteed a decision by January 1, 2021.
- Releasing a second tranche of 10,000 places under the First Home Buyers Deposit Gap Scheme, but exclusively geared towards the purchase and supply of new housing stock
- Supporting the return of immigration levels to 200,000 for FY2021 and FY2022, subject to health protocols, as a key catalyst to drive demand and broader economic growth.
These initiatives sit alongside a suite of other actions that the Commonwealth and States can advance in partnership to reduce taxes, cut red tape, re-engage foreign capital and lower the cost of housing.
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