Ensuring a strong national focus on housing is critical to retaining Australia’s AAA credit rating, says the Housing Industry Association (HIA).
“Residential building activity has been the engine room of the Australian economy for the past four years,” said HIA’s Chief Economist, Harley Dale. “It has filled the void left by a contracting mining sector, and has gained some ground on a decade of undersupply in new housing. But there’s much more that needs to be done if Australia is to defend its AAA credit rating.”
“The incoming Commonwealth Government needs to focus on building the new homes for our growing population, meeting the housing needs of our changing demographics, addressing the housing affordability challenges confronting younger generations, supporting the 321,595 businesses that operate across the residential building industry, and importantly, enabling the industry to grow and expand its contribution to the Australian economy.”
“The industry generates over $160 billion in national GDP each year, contributes $77 billion in taxes, provides jobs for over one million workers and touches the lives of every Australian every day.”
“Australia needs a Commonwealth Housing Minister – a senior Minister in cabinet to provide national leadership, to coordinate federal, state and local government housing programs, to guide important industry policy reform nationally, and ensure housing has a front seat in cabinet discussions around taxation reform, national budget repair, infrastructure and workforce development.”
“External rating agencies and organisations like the IMF are watching our economy closely, particularly housing, and are clearly looking for economic focus, leadership and policy reform. Reform is the key; while procrastination could well be the nation’s Achilles heel. A lack of federal focus on housing policy reform increases the chance of a ratings downgrade,” concluded Harley Dale.
