October 14th 2024.
It seems that local councils are not doing their part to solve the ongoing housing shortage crisis, and this may soon have consequences for them. A new plan is being proposed to hold these councils accountable for their slow approval processes, which are being blamed for contributing to the housing supply issue across the country. The Business Council of Australia (BCA) is calling on state governments to set deadlines for approving housing development applications and to impose stricter penalties on councils that cause delays.
This initiative is part of the BCA's efforts to increase housing supply and meet the federal government's ambitious target of creating 1.2 million new homes over the next five years. The BCA has released a report titled "It's time to say yes" which focuses on targeting local councils that are dragging their feet when it comes to approving new developments. The BCA is proposing the implementation of state-wide council "report cards" to monitor the performance of local government housing approvals, as well as intervention powers to remove council planning authority.
These report cards would expose which councils are efficient in their decision-making and which ones are moving too slowly. In cases where a council is under-performing, their planning authority may be stripped, while high-performing councils may be rewarded with financial incentives. BCA's chief executive, Bran Black, acknowledged that these recommendations may be difficult to implement, but emphasized the need for tough decisions to be made in order to address the housing supply crisis in the country.
Black stated, "We have a housing supply crisis in Australia and we need to turbo-charge the assessment and approval process so we get more homes built faster. This supply crisis, driven by a shortfall, means demand for limited houses further pushes up prices and rents, driving higher inflation which hurts all Australians." He added, "Plain and simple, we need more supply, and we want to work with local and state governments to speed up their housing decisions, so builders can get on with the job of delivering places for people to live."
The BCA believes that some councils intentionally delay development applications, as they have the power to do so. In order to address the larger issue of the national housing supply, the BCA suggests that state governments should have the authority to override local council decisions. Black stated, "State governments are best able to balance local feedback with the broader economic and policy priorities faced by the community around the need for housing."
The full report will be released in October and will contain policy recommendations to effectively address the national housing supply crisis. Stay up to date with the latest breaking news, celebrity updates, and sports news by following our WhatsApp channel. No comments, no algorithm, and your private details will remain confidential.
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