A federal review has called for national reforms in an effort to improve inefficient planning and zoning processes.
The draft report of the Competition Policy Review noted that “there is clear dissatisfaction with the current arrangements from almost all who raised planning and zoning”.
“Effective economic objectives and proper consideration of competition are lacking from planning and zoning legislation and therefore processes,” the report said.
Master Builders Australia chief executive officer Wilhelm Harnisch said the report reinforces the building and construction industry’s need for bold competition policy reforms.
He said further review was needed to reform local government planning and zoning processes, given the impact of council red and green tape surrounding access to affordable housing.
“Inefficiency at the local level is a major obstacle to affordable home ownership because it unnecessarily drives up the cost of construction and chokes the supply of new housing,” Mr Harnisch said.
“Reforms that increase housing stock would more effectively target housing affordability pressures than abolish negative gearing.
“Tackling the nation’s massive housing undersupply will ensure access to affordable home ownership, provide adequate social housing and allow the housing industry to do its job and drive increased investment in non-mining sectors of the economy.”
[Related: Housing finance commitments jump 18.2pc]