New report highlights state performance on housing supply targets and policy effectiveness
South Australia has emerged as the strongest performer in a new Housing Policy Scoreboard released by the Housing Industry Association (HIA), which evaluates state and territory government policies aimed at increasing housing supply.
The scoreboard assesses 10 key housing supply policies that, according to HIA, could significantly help governments meet their National Housing Accord targets for 2024 to 2029. These policies include new housing targets, incentives for first-home buyers, streamlined approval processes, land release programs, investment in construction trades, and social housing commitments.
South Australia achieved the highest score, receiving nine out of 10. The report credited the state’s strong planning policies, investment in housing affordability, and support for skills development as key factors in its success. It highlighted South Australia’s online planning application system and use of AI-driven approvals for simple development applications as significant steps toward improving efficiency. However, it noted that further refinements were still needed.
Western Australia followed closely with eight out of 10, having prioritised planning reforms to reduce red tape. The report noted the state’s focus on increasing housing density through incentives and allowing higher-yield developments, regardless of zoning constraints.
At the other end of the scale, the Australian Capital Territory (ACT) scored four out of 10, the lowest among all jurisdictions. The report criticised the territory’s housing strategy, stating that the ACT’s housing roadmap is “deficient and looks unlikely to promote sustained strength in new home supply over the next five years.” While the government plans to release land for 21,059 new homes, the report said there was a lack of policies to improve approval processes.
Victoria, New South Wales, and Tasmania each received a score of six out of 10 in the HIA Housing Policy Scoreboard. Victoria was recognised for its $5.3 billion Big Housing Build, which aims to deliver 12,000 new social and affordable homes. The HIA also praised the state’s temporary stamp duty cut for off-the-plan units and townhouses, saying it would support medium- and high-density housing supply. However, the report raised concerns about tax increases on housing, including the land tax surcharge, absentee owner surcharge, windfall gains tax, and short-stay levy.
New South Wales was described as “perennially a one step forward, one step back jurisdiction.” While the state has introduced faster development approvals and established clear assessment timeframes for councils, the report noted it had missed opportunities to boost greenfield land supply, particularly around Greater Sydney.
Tasmania was recognised for its social housing policies but was found lacking in support for private rental and home ownership markets. The report highlighted a $30 million land release grant program, but said it was not a substitute for broader efforts to increase greenfield land supply.
Queensland and the Northern Territory each received five out of 10. Queensland was urged to introduce planning reforms to facilitate higher-density housing and reduce approval delays. The report noted that the state’s proposed state-facilitated development team could help streamline decisions but warned that current 75-day approval timeframes were slowing new housing delivery.
The Northern Territory was acknowledged for offering Australia’s most generous first-home owner grant of $50,000, but the report said its planning system lacks strategic direction. It recommended stronger guidance documents and a comprehensive land development strategy to improve supply.
The HIA is urging the federal government to commit $12 billion in the upcoming budget for essential infrastructure, stating that the funding is crucial for unlocking land supply and tackling the country’s housing shortage.
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