Federal government support seen as key step to easing housing shortfall
The Housing Industry Association (HIA) has welcomed the federal government’s announcement that it will provide $1.7 billion in early funding to local councils to support housing-related infrastructure as part of efforts to increase new home supply across the country.
“This funding is an important investment and should predominantly be directed toward enabling infrastructure such as roads, water and sewerage to unlock residential land across a range of development settings,” said Simon Croft (pictured), HIA industry and policy chief executive.
He said that with all councils being pushed to meet housing targets, investment in infrastructure should be prioritised where it’s most needed. He said builders have been unfairly carrying the cost of basic infrastructure, which is then passed on to buyers. Councils, he added, also face financial pressures in meeting infrastructure demands.
The HIA is also urging that part of the funding be used to boost council planning departments to speed up approval processes. “The current resource shortages across local councils is one of the primary reasons for protracted approval timelines being experienced across the country,” Croft said.
He also called for a defined share of the funds to be set aside for regional areas. “With regional Australia now home to more than 8.5 million people and growing it is important this funding be allocated proportionally to support the delivery of new homes in regional Australia.”
Croft pointed out that the country needs to deliver around 240,000 new homes each year to meet demand, but last year, construction fell short by about 60,000 dwellings. “This funding can play a key role in supporting local councils to bring forward housing approvals to get keys in the door faster,” he said.
The National Housing Supply and Affordability Council (NHSAC) recently warned that Australia is unlikely to meet its target of building 1.2 million homes by mid-2029.
According to the council’s State of the Housing System 2025 report, the country is on track to deliver only four out of every five homes needed, leaving a shortfall of around 262,000 homes if current trends continue. No state or territory is currently meeting its share of the national goal.
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