The latest cabinet shakeup has shuffled the leaders behind the Aussie housing push, but does a new minister mean new beginnings for residential construction?
Albo discreetly played musical chairs with his ministers over the weekend, outing Claire O’Neil and Andrew Giles from home affairs and immigration and handing them the reins of the Housing and Skills and Training portfolio, respectively.
While critics of the shift (like opposition leader Peter Dutton) saw the move as a shallow attempt to parachute the ministers into different positions following the messy release of 150 immigration detainees late last year, the prime minister said the move was anything but and claimed it O’Neil was primed to make good on the Aussie housing promises.
“What Clare O’Neill and Andrew Giles have had to do is to repair the damage which has been done,” the prime minister said.
“Claire of course is a great communicator. She will lead the delivery of our ambitious Homes for Australia plan that has been established by minister [Julie] Collins.”
It remains to be seen whether or not O’Neil can get the job done, but it looks like the odds are stacked against her.
The most recent figures from the Australian Bureau of Statistics data have building approvals once again heading in the wrong direction with only 13,237 new dwellings approved in June – a 6.5 per cent decline since May.
This drop-off meant only 163,000 homes were approved in the 2023/24 financial year, 77,000 homes short needed to meet the nation’s annual housing targets.
With the figures painting a bleak picture for the future of the Accords, Master Builders Australia chief economist Shane Garrett warned that the home builds would be getting off on the wrong foot.
“Annual building approvals are now at their lowest levels in over a decade despite strong signals from government to increase housing supply,” said Garrett.
“This was driven by an 18.4 per cent reduction in higher density dwelling approvals, their lowest monthly total since July 2012.
“If approvals continue at this level, Australia will fall 385,000 homes short of the 1.2 million Housing Accord target.”
Time for regulation reform
While housing targets might have a steep slope to climb, industry groups are still holding out hope that the latest ministerial shakeup could finally help cut down on the regulations holding up delivering on home builds.
Housing Industry Association Managing Director Jocelyn Martin said the cabinet shuffle offered up the opportunity for the government to take “true leadership” over the home construction and pleaded with officials to look at cutting the red tape.
“We need this government to recognise that they cannot continue to pile on more regulation and red tape and expect it to result in better outcomes for homeowners, investors and renters, said Martin.
“They cannot continue to allow the current industrial relations environment to continue to be dominated by unaccountable unions.
“What the industry needs is strong and bold leadership including a pause on future regulation and to make systemic improvements to business conditions for builders.”
Master Builders CEO Denita Wawn also said that the latest figures make it increasingly clear that more needs to be done.
“Australian builders are willing and ready to get on with the job of building new homes, but they currently have one hand tied behind their back said Wawn.
“The industry is being held back by worker shortages, slow planning approvals and critical infrastructure delays, as well as high taxes and charges deterring investment. Combined with industrial relations challenges and recent revelations of alleged union misconduct, costs and building times are blowing out.
“The industry is hopeful that the recent ministerial reshuffle will provide an opportunity for a refreshed ‘whole of government’ approach to the housing crisis.”
