Budget avoids interest rate pressure: HIA

HIA managing director, Shane Goodwin, said that while the budget is economically sensible and provides some useful incentives for households, businesses and workforce skills, it contained little to address Australia’s chronic housing shortage and worsening affordability.

“Unfortunately, the budget fails to deliver measures to alleviate Australia’s chronic housing shortage,” Goodwin said. “The federal government’s own Housing Supply Council estimates Australia’s housing shortage at nearly 200,000 in 2010 and projects that shortage to double over the next 10 years.”

Goodwin said that Australia’s housing pipeline remains clogged by exorbitant infrastructure costs, planning delays and slow land release.

“Until these bottlenecks are removed many Australian families will remain locked out of home ownership as house prices and rents push ever-higher,” he said. “Importantly the Federal Budget shows an improved economic and fiscal outlook. The reduced federal budget deficit of $40 billion and improved economic growth and unemployment outlook is to be commended.”