Opinion Piece - More than Hope and Faith

Opinion Piece – More than hope and faith

PLANNING INSTITUTE OF AUSTRALIA

15 March 2024

James Newbury, Shadow Minister for Planning

Surely, we can all agree on one thing. We don’t have enough homes and we need to build more. With Melbourne projected to grow to the size of London by 2050, our population will almost double over the next twenty five years, from five million to well over eight million people. The need for more homes is urgent.

As the age old expression goes, you need more than a wing and a prayer if you want to succeed. We won’t be up to the challenge of building homes for future Victoria armed only with hope and faith alone. We need a solid plan that balances the challenging task of incentivising industry and maintaining social support for needed growth.

The recent Australian Bureau of Statics release of data for approvals for new private sector houses in Victoria should be a wakeup call. The new data showed that over the last year, 51,068 homes were approved in Victoria. That’s almost forty percent under the 80,000 new home commitment set out in the Victorian Government’s housing statement.

The fact that the number of building approvals is slowing, when it needs to be sped up isn’t just a problem for government, it’s a problem for our whole State. It is a problem for the growing base of Victorians who cannot afford to buy, and for new Australians. With the Federal Government opening the door to immigration, a record 125,410 migrants arrived in Australia in January.

We need to get cracking and get building. The State Government needs to pull the right levers to incentivise growth. The two big levers that need to be pulled are with industry and with the Victorian community.

It sounds self-evident, but Government’s don’t build homes, industry does. As simple as that statement sounds, we know that it isn’t universally understood, because too often recent policy has pulled the handbrake on investment and growth.

Taking the handbrake off industry is straightforward, but it will come at a cost. The property sector is a giant of our economy. Recent estimates show the industry contributes $58.1 billion to Gross State Product and directly employs approximately 393,100 full time equivalent employees.

Instead of using policy to stimulate the giant, Government has treated the industry more like a cash cow through repeated shake downs. Surprise taxes strip away confidence and send a signal to international investment that Victoria is not a safe place to invest. It’s time to say loudly and clearly that reform of property taxes is long overdue.

What is also overdue is cuts to red, green, and cultural tape that is tying up industry. We cannot have swathes of projects being held hostage to prolonged delays. Delays with decisions sitting on the Minister’s desk for years. And delays caused by cultural restrictions. With built heritage, the onus must be proven. Why is the onus reversed for cultural heritage?

The challenge ahead is big and can only succeed with community support. Ensuring community support will mean accepting that Victoria is a rich mix of built character that needs to be protected as it grows. Unless we see greater efforts being given to fostering capital in social support, we will see the Government lose their social licence for announced planning reforms.

Over recent months we have seen third party rights taken away from environmental renewable projects and around suburban rail loop stations. These changes jade sentiment and breed the risk of improper influence and the potential for corruption.

The challenge ahead is big, but we must succeed in housing a growing Victoria. Let’s take off the handbrake and get cracking.

James Newbury, Shadow Minister for Planning