The Australian Institute of Architects (AIA) has welcomed the Federal Budget’s National Housing Accord to improve housing outcomes for all Australians by increasing the supply of sustainable social and affordable housing.
The Treasurer has announced the government’s commitment to see one million new affordable and well-located homes built over 5 years from 2024 bringing together states and territories, local government, investors, and representatives from the construction sector.
AIA national president Shannon Battisson said housing must be recognised as a basic human right, and should be supported by a generational plan for affordable and social housing.
“Problems are not just about the numbers of dwellings but dwellings that are overcrowded, costly to run due to low energy efficiency, design that is unresponsive to the needs of people with various disabilities, nor co-designed with residents or communities to create positive and inclusive communities.
“A decades-long, funded strategy will help to overcome the challenges of housing stress and unaffordability, and ultimately make Australia a better society where everyone has a home. Bipartisan support is necessary to make this happen.
“This strategy needs to be backed up with a solid supply chain strategy to ensure there are resources, materials and skills, to deliver homes to meet demand.
“We are pleased to see that the Treasurer has listened to peak bodies such as the Institute in saying that “peak organisations for the construction sector support building these homes at a high energy efficiency rating.
“Housing energy efficiency is a good initiative toward addressing climate change.
“The Institute also supports further action on climate change noting that the legislated 43% emissions reduction target by 2030 is a minimum target.
“We support the restored role of the Climate Change Authority, investment in First Nations expertise and investment into low carbon manufacturing.
“Australia should have a national construction supply chain strategy to increase sovereign capacity and ensure the ready availability of high-quality, low-carbon construction materials.
“We note the announcement to establish the National Reconstruction Fund including investment to support the manufacture of technologies that drive renewables and lower emissions.
“We hope for a national construction supply chain focus on increasing “Australia’s capacity to manufacture high-quality and sustainable building materials, components and fittings.
“With better local manufacturing capacity and government oversight, Australia can be a world leader in the development and manufacture of sustainable products.
“This will help to accelerate our vital transition to a low-carbon industry, while reducing our reliance on international products.”
Adam Crowley, RSM Australia Property & Construction National Leader Adam Crowley said it was a welcome change to see governments at all levels team up with the property and construction industry in a formal national Housing Accord to tackle Australia’s persistent housing supply and affordability challenges.
Crowley continued: “A multi-pronged approach is needed to release more land for development in well-located areas and encourage greater private investment, particularly from our well-capitalised superannuation institutions, in the sector.
“While the five-year 1 million construction target – including 20,000 affordable homes – is a headline-grabbing KPI, the devil will be in the detail of how the construction sector will be engaged in the delivery, particularly when the sector has already delivered 1 million dwellings over the past five years without such stimulus and challenges still persist.
“Labour supply and material shortages combined with inflationary pressures and rising interest rates are curbing new building activity which is adding to an already overflowing pipeline of work. Labour shortages are also biting with more than 33,000 job vacancies and almost 30 percent of businesses in Australia’s construction sector looking for new hires.
“The value of building work yet to commence has climbed 19 percent over the past year to a record $126 billion, including about $71 billion worth of new residential homes, apartments and townhouses.
“The slowdown in new dwelling commencements and the longer-lead indicator of building approvals over the past year, comes at a time when parts of Australia are experiencing extreme rental stress and more international migrants are due to call Australia home after the Federal Government lifted the permanent intake to 195,000 in 2022-23.”
Engineers Australia chief executive said Romilly Madew said the organisation welcomed measures to boost the economy including the Budget commitment of $55 billion over the forward estimates for new and existing infrastructure projects.
Madew said: “Addressing the engineering skills gap will be important for the successful delivery of these projects and Engineers Australia looks forward to working with the Government to overcome this challenge.
“Collaborative long-term planning of infrastructure is vital to economic prosperity.
“On skills and skilled migration, with 58 per cent of Australia’s engineering workforce born overseas, skilled migration will remain essential to the nation’s engineering capability in the short and medium term, therefore the increase in places is welcome.
“The Government’s promised Migration Strategy focuses on growing Australia’s economy and attracting highly skilled workers.
“This unlocking of migrant potential and providing clearer pathways to permanent residency is vital to ensure Australia remains a destination of choice for skilled migrants, particularly as the global demand for engineering skills increases and other nations turn to migration to shore up their supply.
“Engineers Australia looks forward to the newly-funded Jobs and Skills Australia developing a detailed scope of future skills supply and demand.
“On cost-of-living relief measures which have been announced, the Government’s upgrades to parental leave and childcare subsidies will assist women who are assessing the financial viability of remaining in, or returning to, the engineering workforce.
“Engineering is the largest employer of the STEM professions, yet has the lowest number of women at just 13 percent of Australia’s engineering workforce.
“Boosting women’s workforce participation is critical in addressing skills shortages in the engineering profession.”
