Coalition commits $5bn to infrastructure under election housing plan

The Leader of the Opposition announced the plan on Saturday, 19 October 2024, building on previous housing-related commitments to freeze purchases by foreign investors for two years and cap the number of incoming overseas students if the Coalition were to achieve a majority in the next federal election.

Under the Housing Infrastructure Program, the Coalition has estimated that up to 500,000 new homes will be supported with the necessary infrastructure, with funding to be allocated to projects through a mixture of grants and concessional loans.

Primarily, the program is intended to pave the way for greenfield development, with Dutton saying that the Coalition decided to focus on detached housing because it was the “cheapest form of housing for first home buyers”.

“We know there are hundreds of greenfield sites across the country ready for development, but progress has been stalled due to a lack of funding for essential enabling infrastructure. Our approach is focused on investing in enabling infrastructure to unlock the supply of shovel-ready new housing developments,” he said.

The grants and loans are to be provided on a “use it or lose it” basis, with funding to be withdrawn if there’s no progress after 12 months of contracting.

In conjunction with the $5 billion fund, the Coalition also revealed its intention to halt any further changes to the National Construction Code for a period of 10 years after the election, citing the impact that recent updates, such as energy efficiency standards, have had on construction costs. During the pause, the Coalition said that the policy would be reviewed with an eye to cutting red tape.

“Stakeholders estimate the government’s recent changes to the NCC (including changes to energy efficiency standards) have added up to $60,000 to the price of a new home,” a statement from the Coalition said.

Moreover, Dutton pledged that a Coalition government would work with the building and construction industry on skilled visas to increase the industry’s workforce.

Representing the building industry, Master Builders said it welcomed the Coalition’s “supply-focused” new policies, particularly the opportunity to review the efficacy of the NCC.

“A pause on unnecessary code changes that increase cost and complexity without meaningful improvements in standards is a positive step,” Master Builders’ CEO Denita Wawn said.

“The proposed review will provide an opportunity for industry to be heard on perverse outcomes of recent changes that were introduced without proper consideration of the evidence and the implementation hurdles facing builders.”

The Housing Industry Association, meanwhile, said that another set of NCC changes is under consideration by federal and state governments and similarly stressed the impact that such alterations have on construction time and cost.

“The residential construction industry and particularly small business are struggling under the weight of red tape and this is hampering the delivery of new homes. This initiative to place a pause on further rule changes will provide certainty to the industry and let builders get on with the job of building the homes Australians desperately need,” HIA managing director Jocelyn Martin said.

Martin also welcomed the $5 billion funding announcement on behalf of the organisation’s membership.

“Our members consistently tell us that it is the lack of investment in infrastructure which slows down their ability to bring homes to market faster. We know that efficiently delivered greenfield housing is the quickest way to deliver homes for Australians,” she said.

This article was originally featured in REB.