Coalition outlines plans to accelerate housing approvals

Dutton said his administration would set itself a target of clearing the current backlog within 12 months.

He also said that any project already stuck in the approvals process for more than a year would be finalised within six months under a Dutton government.

Dutton said: “Across Australia, hundreds of greenfield sites remain undeveloped due to a lack of funding for essential infrastructure like water, power, sewerage, and roads.

“On top of this, there are more than 100 housing development projects currently stalled under Anthony Albanese and Tanya Plibersek’s glacial environmental approvals process.

“As part of our plan to tackle Labor’s housing crisis, a Coalition Government will immediately take action to finalise existing residential development environmental approval applications.

“Under Labor, the aspiration of home ownership has become out of reach. Labor has completely dropped the ball on unlocking new housing supply, with developments completely stalled in their broken approvals process.

“The Coalition will break through Labor’s bottlenecks and unlock new housing through our comprehensive plan to deliver new supply. We will hold every part of government accountable to get the job done – because Australians cannot afford more Labor delays which only drive up costs.”

The Leader of the Liberal Party said he would also look to establish a new body – Investment Australia – to drive productivity reform across the economy, with a key focus on building and construction.

This new arm would move to expedite hundreds of project approvals by setting firm timelines for each outstanding residential development project (in collaboration with the relevant department) and streamlining the environmental assessment processes (including clarifying the rules for environmental offsets).

Indeed, shadow minister for the environment, Senator Jonno Duniam, said that the average age of the residential developments currently awaiting environmental assessment is more than five years.

“You can responsibly manage housing developments while maintaining environmental standards. This policy will create supply in a sustainable way that could benefit hundreds of thousands of Australians who are waiting to buy a home,” Duniam said.

The measures build on the Coalition’s $5 billion Housing Infrastructure Programme to fund enabling infrastructure to get 500,000 homes built faster and the Coalition’s commitment to freeze the National Construction Code to “provide certainty to the industry and let builders get on with the job of building homes for Australians”.

The Coalition’s promise to fast-track development approvals and streamline environmental assessments has been welcomed by the property industry for potentially unlocking tens of thousands of homes.

Property Council Group’s executive for policy and advocacy Matthew Kandelaars said: “Tens of thousands of homes are currently stalled in environmental approval processes and creating a priority pathway for housing developments will unlock critically needed supply.

“This is not about cutting corners, and maintaining strong environmental standards is non-negotiable. Any fast-track approval processes will need to find the balance between good environmental outcomes and housing supply – but that balance can and must be found.

“Working with the industry experts on the design of these pathways will be key in ensuring its success.”

It comes as seasonally adjusted numbers released last week by the Australian Bureau of Statistics (ABS) revealed that building commencements are still at record low levels.

To meet the National Housing Accord’s 2029 target, over 60,000 new homes are needed every quarter. However, ABS figures showed that, in the December quarter, only 45,167 homes were built across Australia, up 0.4 per cent from the September quarter, and 41,911 homes were commenced, down 4.4 per cent.

Kandelaars said: “We are building half the number of homes per hour than we did 30 years ago. It takes over a year to build a home and over three years to build an apartment project – that’s simply too long.

“We have an ambitious and admirable target of 1.2 million new homes by 2029, but we need to double our national accord bonus of $3 billion to states who are tracking to build their fair share – backed as recently as yesterday by independent Allegra Spender.

“Both major parties need to double down on supply-side initiatives to get more homes built and more keys in the hands of Australian home buyers and renters.”

New supply policies come following backlash

The announcement comes after the Coalition faced criticism over stoking demand with its new housing policies for first home buyers – which could further increase record-high house prices – while housing supply remained low.

However, its proposal to introduce a mortgage interest tax deduction has been criticised by economists and the Greens, who have warned it could inflate house prices and increase financial risk for first home buyers.

Economists had said that neither party has offered a strong enough supply-side solution, instead relying too heavily on demand-side incentives that may push prices higher. Broker groups and industry associations have called for broader tax reform and more direct support for existing borrowers, saying that without holistic measures, the affordability crisis could persist despite these announcements.

[Related: FHB election promises could exacerbate house price problem]