The government is being urged to create a new ministerial position, the Better Regulation Minister, and reduce red tape in order to improve productivity.
The Housing Industry Association (HIA) has urged the government to reduce regulatory burdens after claiming red tape is “overwhelming business and slowing the delivery of homes”.
In its submission to the Productivity Commission’s consultation on the five pillars for productivity reform, HIA warned that reforms are needed to lift productivity and boost new housing supply.
Among its suggested reforms, HIA called for an overhaul of the nation’s approach to regulation and policy settings, including the creation of a federal ‘Better Regulation Minister’, who reports directly to the Prime Minister and oversees all policy and regulation settings.
The new minister would set an economy-wide target of at least a 25 per cent reduction in regulatory burdens.
HIA also outlined its support for reforms to remove unnecessary entry rules and streamline training pathways, so more workers can enter trades, boosting the number of skilled workers.
The government should set out a timetable for implementing the Productivity Commission’s recommendations, HIA also stated.
HIA managing director Jocelyn Martin commented: “Cutting red tape must be the government’s top priority.
“Australia’s sluggish productivity growth and persistent housing shortages demand immediate attention. What we need is action, not another round of reports.
“Red tape is overwhelming business and slowing the delivery of homes. Freeing builders and small businesses from unnecessary and over the top regulation will let them innovate, compete and get more Australians into housing sooner.”
HIA’s submission was part of a consultation by the Productivity Commission into one of five separate inquiries on boosting productivity. The inquiries were commissioned by Treasurer Jim Chalmers last year.
The Productivity Commission’s five inquiries informed the Economic Reform Roundtable, which was hosted by Chalmers and held at Parliament House last month.
In their submissions before the roundtable, the Commonwealth Bank of Australia (CBA) and the Mortgage and Finance Association of Australia (MFAA) both called for tax reform.
Master Builders Australia also submitted recommendations, calling for a review of the National Construction Code, free access to regulated building standards, tax reforms, and faster planning approvals.
[Related: Corporate tax cuts backed by Productivity Commission]
