Today’s release of ABS inflation figures saw annual inflation hit 5.6 per cent during September, its highest in 5 months.
Master Builders Australia CEO Denita Wawn said housing costs remain a significant source of inflation pressures.
“Rental prices are up by 7.6 per cent over the past year – close to a 15-year high.
“The rental market continues to be hurt by a prolonged drought in new apartment building and the negative consequences of rising interest rates.
“There was a 4.9 per cent increase in new home prices over the past 12 months.
“Housing costs have a major impact on wages and costs right across our economy.
“Taking decisive action to speed up the delivery of the new homes we need will help us win the battle against inflation more quickly.
“The cost of building homes continues to be inflated through unnecessary delays and barriers including planning impediments, lengthy approvals processes and high developer charges.
“The ball is now in the court of state and territory governments to deliver on their commitments on planning reform.
“For many builders and developers, initiating large-scale home building projects in the current environment is simply too risky.
“Despite all the work at a Federal level to pass housing legislation and invest in skills, the Government risks magnifying costs and regulatory obstacles with its far-reaching ‘Closing Loopholes’ Bill.
“The IR Bill means businesses will have even more of their time absorbed by compliance and red tape issues – instead of being out there building new homes,” said Ms Wawn.
