Event: BCA Chief Executive Bran Black interview with ABC News Breakfast

Speakers: ABC News Breakfast Host Bridget Brennan; Business Council of Australia Chief Executive Bran Black

Topics: Housing, supply, economics, planning approvals, industrial relations, cost of living

E&OE

Bridget Brennan Host, ABC News Breakfast: To talk us through the Business Council’s housing plan we're joined by the organisation's chief executive, Bran Black who's in Sydney. Good morning to you.

Bran Black Chief Executive, Business Council: Good morning to you. Thanks for having me.

Bridget: Why did you feel it was necessary to have this blueprint to have a look at what some of the solutions are to this crisis affecting so many Australians?

Bran: That's a really good question. The reason why we developed this plan is that we see that the Federal Government, together with the states, has put together a target for the next five years of 1.2 million new homes. That's a supply initiative, but we know that we're not hitting that right now. So in order for us to hit that target, we need to be building nine homes for every 1000 people each and every year over the course of the next five years. Right now, we're on track to deliver six homes per 1000 people. So, there's a gap. Now we think it's important to have targets, and we back in the idea that we do have this target, but we think it's important to recognise that because of that gap, we've got to take some additional measures to enhance the overall supply story. And so what our report does is set out a series of recommendations, 29 all up, which we consider help us bridge that gap and get back on track.

Bridget: What do you see is the key to supercharging supply? And do you think supply is the most critical factor in alleviating some of the housing stress that so many Australians are facing right now?

Bran: We absolutely do think supply is the critical factor. That's very clear from the analysis that's being done, not just by us, but from so many different other organisations all around the country, we think that, unfortunately, there is no single silver bullet, but there are a whole series of different initiatives that you can point to that make a difference. Broadly speaking, there needs to be change with respect to zoning. There needs to be change with respect to how we go about doing approvals. We've got to look at making sure that we deal with problems with access to skills and materials shortages. But what's really interesting with the types of initiatives that you're seeing around the country is that if you look at what's already been done, if we were to simply harmonise right across the country, the different initiatives that states and territories are already rolling out, we achieve so much more so by way of example, if you took the Queensland concierge system, which helps home builders navigate through the bureaucracy, if you took the New South Wales system of having really transparent access to approval timeframes on a month by month updated basis from councils, the South Australian approach to consolidating zoning arrangements, and the Western Australian approach to how we set the threshold for states' significant development. So that's when the government can step in to assess projects. If you would have taken these types of initiatives and so many others and simply harmonise them across the Commonwealth, we would be that much closer to delivering on our supply needs.

Bridget: What about the Victorian plan that's been announced this morning Bran, slashing stamp duty on apartments and units off the plan, is that something that will help? Is it something that should be replicated in other states?

Bran: We absolutely think that any step towards phasing out stamp duty is a good thing. Stamp duty is ultimately a tax on mobility. You think about it from the perspective of somebody who's perhaps young and looking to move interstate and buy a home, they might be disincentivised from doing that. They might be disincentivised from following employment opportunities because of the upfront costs associated with stamp duty. And equally, if you're looking at empty nesters, you know a family that's seen the kids move out of home, and the parents are now looking at downsizing, they might be disincentivised from doing that and from freeing up a larger family home because of that large upfront cost. So, any step that we can take towards abolishing stamp duty is going to be a good step.

Bridget: There's been quite a heated debate around migration in recent months, but you believe that's part of the picture, that's part of the solution to getting homes just built. Because, as many Australians know, who are trying to build their own home, often you can't get the workers.

Bran: That's absolutely right. So as a principal position, we would always say it's best to develop the skill sets that Australia needs here at home. So that's why our report includes recommendations in relation to how we can make incentive programs more employee centric. Ultimately, we want to develop those skills here in Australia, but the reality is that right across our economy, we're facing skills shortages in the building and construction industry, it's everything from plumbers and electricians and bricklayers and carpenters to architects and surveyors and engineers. We can't develop all of those skills here at home in the timeframes that we need. So, we need to look at what we can do with respect to our migration system to bring those skill sets into the country as quickly as possible.

Bridget: It's certainly an interesting blueprint. Thanks very much for taking us through it, Bran Black.

Bran: Thanks so much for having me.