HOUSING QUEENSLANDERS - HOME OWNERSHIP MATTERS
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HOME
OWNERSHIP
MATTERS
HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION
HOUSING
QUEENSLANDERS
QUEENSLAND
HOUSING FACTS
7.7%
There are 200,287 people
employed in the residential
construction industry
Source: HIA economics based on ABS workforce data
+200K The construction industry
contributes 7.7% to GSP
Source: ABS national accounts 2018/19 financial year
A total of 31,131 homes were built in 2019
DETACHED MULTI TOTAL
20,966 + 10,165 = 31,131
Source: ABS 2019 calendar year commencements
QLD dwelling stock Value of residential building work
1,987,313 $12.6B
Source: 2016 Census Source: ABS 2019 calendar year building activity
2 HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION
A PLAN FOR
The combination of Queensland’s
weather, relaxed lifestyle, scenic
beauty and relative affordability
REBUILDING means Queensland remains an
attractive destination for new
migrants, interstate workers,
QUEENSLAND retirees and sunshine seekers.
However the state’s unemployment rate,
which even before the onset of COVID-19
sat stubbornly above the national average,
indicates that while people move to
Queensland attracted by the weather and
lifestyle and hope of employment they
don’t come to Queensland because of the
employment opportunities.
While population growth has continued since
the state’s last home building boom (2013-
2016), the volume of residential building work
has been declining for several years.
Analysis indicates a 45 per cent drop in the
number of new lots approved across South
East Queensland over the last five years.
Given the economic challenges created
by COVID-19 it is difficult to imagine a
significant reversal of this trend in the near
future.
The complexity of legislation surrounding
the delivery of land and the construction of
a dwelling in combination with the growing
trend towards community opposition to
anything larger than a house being built on a
parcel of residential land does not bode well
for the industry to meet the housing needs
of Queenslanders into the future. More must
be done and the State Government needs
to lead the recovery.
Directly employing in excess of 200,000
people the Queensland residential building
industry is not only a significant employer,
but is also the second largest economic
multiplier of all industries. Keeping the
residential building industry active does
more than put a roof over the heads of
Queenslanders – it’s good for the State’s
economy.
A future State government needs to
implement a suite of policy measures
to create jobs, attract high numbers of
interstate migrants, improve the regulatory
environment governing housing delivery,
and ensure housing is delivered in a low tax
environment.
Housing Queenslanders sets out HIA’s key
policy imperatives that we believe deserve
the support of an incoming government
to assist the housing industry to meet the
changing housing needs of Queenslanders
in an affordable manner supported by a
regulatory environment that is practical
and transparent, allowing the industry to
work efficiently and effectively to rebuild
QUEENSLAND REMAINS AN ATTRACTIVE DESTINATION Queensland.
HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION 3
THE Home ownership is the bricks and mortar that has helped Australia
build a stable and vibrant society.
IMPORTANCE As the opportunity to own a home in Australia becomes more challenging, and the type of
OF HOME home many families aspire to is changing shape, evidence shows that an overwhelming
majority of Australians agree: home ownership matters.
OWNERSHIP Throughout an individual’s life their housing requirements change, affecting the type of
house they seek. Housing affordability is improved as a consequence of an adequate
housing supply at an appropriate price for each cohort of the housing continuum.
Access to safe, affordable and well maintained housing, whether owned, rented or
supported, is something all Queenslanders deserve.
ACCESS TO SAFE,
AFFORDABLE AND WELL
MAINTAINED HOUSING,
IS SOMETHING ALL
QUEENSLANDERS DESERVE
Darren James
THE Delivering new homes to provide quality and affordable shelter for
all is the fundamental driver for the housing industry in Queensland.
IMPORTANCE The economic multiplier effect for Queensland that residential building creates through
OF HOME construction jobs, off site management and administration, the manufacture and supply of
building materials, professional services and retail activity, is well understood.
BUILDING It is critical that Queensland leaders understand the opportunity that exists in supporting
residential building over the next term of government and commit to policies that promote
both new housing demand and new housing supply to meet that demand.
4 HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION
Creative Home Improvements
POLICY IMPERATIVES
FOR HOUSING
HIA calls on an incoming Queensland
Government to implement initiatives that will:
1 Support New Housing
2 Plan for Growth and Housing Choice
3 Reduce the Cost of Housing
4 Ensure Fairness for Builders
5 Make Health & Safety Practical
6 Ensure Fairness for Contractors
7 Secure a Skilled Workforce for the Future
Mactech Constructions
HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION 5
THE COMPLEXITY OF QUEENSLAND’S PLANNING SYSTEM IS
A SIGNIFICANT BARRIER FOR THE HOUSING INDUSTRY
SUPPORT NEW HOUSING
Building a home on residential zoned land should not be a complicated
process. Sadly, the complexity and resultant uncertainty created by
Queensland’s planning system is a significant barrier for the housing industry
that discourages innovation and impedes the delivery of housing mix.
The result for consumers is reduced housing choice or a price premium to battle the system
without the corresponding benefit in housing outcome.
Establishing the rules that need to be met and determining the approvals needed is a logical first
step in any home building project. Easy access to clear, accurate property information is also
critical. The current challenge of clearly identifying the sum total of the development rules and
property constraints applying to a parcel of land is time consuming, complex and expensive.
HIA estimates that across South East Queensland alone there are over 300 different sets of rules
for siting a house on a block of residential land. The complex maze of requirements that have
become a standard feature of every planning scheme mean that half of all new home building
and renovation projects require a costly planning approval in addition to a building approval. HIA
estimates the cost to home owners attached to dealing with this complexity is in the order of
$200 million per year.
One of the most significant ways to reduce housing costs in Queensland is through practical
planning reform that curtails the need for a planning approval when one house is built on one
block zoned for housing.
The establishment of the Building Disputes Tribunal (BDT) has provided an important pathway for
home owners and certifiers to gain timely answers and certainty on the maze of siting rules, but
more could be done to facilitate timely decisions on housing approvals.
HIA calls on an incoming State Government to commit to:
• simplifying the planning rules and regulations that apply to the construction or
renovation of a home to achieve a ‘one house one approval’ outcome;
• develop a single set of rules for siting a house on residential zoned land;
• allocate sufficient funds to develop a ‘state planning portal’ to enable web based
access to reliable planning information about individual site requirements;
• expand the remit of the Building Development Tribunal.
6 HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION
2 PLAN FOR GROWTH
AND HOUSING CHOICE
Inadequate planning for growth and the demand for land and alternative
forms of housing has contributed substantially to the increasing cost of all
new forms of housing across the state.
Planning for Queensland’s future housing demands is reliant on access to accurate and
timely land and housing data to ensure the ongoing demand in both new and established
areas, across metropolitan and regional areas, is being met.
From an affordability perspective, it is critical that regional plans identify an adequate supply
of land in desirable locations that is able to be cost effectively serviced in time to meet the
market demand.
Additionally, land identified as suitable for residential development needs to be free of
Lifestyle
significant encumbrances once zoned and released for residential development.
Constructions
Community education is required around the important role “missing middle” housing
typologies will play in delivering affordable housing options now and into the future to meet
the housing needs of Queenslanders.
Many Queenslanders and workers from interstate operate as ‘fly in fly out’ (FIFO) workers.
Supporting these workers to move and live in the local communities that already support
them makes good sense.
HIA calls on an incoming State Government to commit to:
• continue to fund the Land Monitoring Program to provide timely and accurate
land and housing information across the state;
• ensure that all Regional Plans incorporate a strategic assessment of the
environmental values of the region to deliver land with limited or no future
constraints that is suitable for residential development;
• take a lead role in the facilitation of missing middle housing typologies
including funding the development of a community education piece
highlighting the importance of missing middle housing options;
• provide incentives for FIFO workers to build or buy a home in the local
communities they work in.
Cavcorp
PLANNING FOR QUEENSLAND’S FUTURE HOUSING DEMANDS IS RELIANT ON ACCESS TO ACCURATE AND TIMELY LAND AND HOUSING DATA
HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION 7
8 HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION
Halcyon Constructions
FEES AND CHARGES ON THE DELIVERY OF A TYPICAL NEW HOME IN
QUEENSLAND ACCOUNTS FOR UP TO 32 PER CENT OF THE COST
3 REDUCE THE COST OF HOUSING
Housing is the second most heavily taxed sector of the economy increasing the
cost of home ownership and denying many Australian’s the ability to own their
own home.
Independent research shows fees and charges on the delivery of a typical new home in
Queensland accounts for up to 32 per cent of the cost of a new home – this seriously damages
the affordability of all housing.
Stamp Duty and Infrastructure Charges account for a substantial proportion of the state based
taxation burden imposed on new housing.
Stamp duty is often imposed three times in the construction of a new house:
• Sale of land to a developer;
• Sale of land from developer to builder; and
• Sale of house and land package to purchaser.
Infrastructure Charges imposed by local government on the delivery of new land need to be paid
prior to the land being sold. The upfront costs for infrastructure delivered at any time after the
land is sold, if not after homes are built, is incurred by land developers and passed onto new
home buyers in the purchase price . Flexibility in the timing and method of this payment could
deliver significant savings to new home buyers without delaying the delivery of the infrastructure
identified as essential.
With approximately 50 per cent of all new homes requiring approvals in addition to a building
approval, there is a large and growing myriad of fees and charges imposed on the construction of
a new home in Queensland, including additional application and approval processes, connection
of utilities charges and site management costs.
HIA calls on an incoming State Government to commit to:
• remove triple-dipping of stamp duty charges imposed on the delivery of a new home;
• facilitate the payment of infrastructure charges on new homes at the plumbing approval stage
or establish a staggered payment attached to local government rates;
• prescribe all Local Government application fees for non-competitive services;
• prescribe Utility provider application and connection fees for water, energy and gas services;
• waive fees for single homes caught by the State Assessment and Referral Agency Application
Process;
• freeze the Waste Levy;
• commit to no further increases in the Q-leave levy.
HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION 9
ENSURE FAIRNESS FOR BUILDERS
All parties to construction contracts should be paid for the work that they perform
in a timely manner and in accordance with the contract. Currently residential
builders do not get paid on time and in full.
Despite a plethora of complicated legislative changes nothing has been done to improve the
chances of residential builders to be paid for the work they do. Project trust account legislation
will not improve security of payment for the industry but will shut-out many small business
builders due to the excessive red-tape compliance requirements set to be imposed.
The single biggest contributor to financial distress in the home building sector is non-payment by
clients. This has devastating flow-on effects to subcontractors, suppliers and the personal health
and well-being for the builder, often a mum-and-dad business.
QCAT plays a pivotal role in handling disputes in the construction industry. The proper functioning
and resourcing of QCAT is essential to provide an impartial umpire for Queensland builders, the
Queensland Building Construction Commission (QBCC), contractors and consumers.
HIA believes that QCAT’s current processes do not lead to a quick or inexpensive resolution
of building disputes as set out in the QCAT mission statement. QCAT should have jurisdiction
to handle reviews as it sees fit including the ability to stay any decision by the QBCC until a full
hearing can be held to ensure natural justice for all parties.
HIA calls on an incoming State Government to:
• introduce regulatory mechanisms to ensure consumers honour payment
clauses set-out in home building contracts;
• maintain competition in the building market by excluding small business
builders from the costly red-tape obligations involved in project trust legislation
by lifting the application to building projects in excess of $3 million;
• commit to improving the resourcing of QCAT.
Allaro Homes
THE SINGLE BIGGEST CONTRIBUTOR TO FINANCIAL DISTRESS IN THE HOME BUILDING SECTOR IS NON-PAYMENT BY CLIENTS
10 HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION5
MAKE HEALTH
& SAFETY
PRACTICAL
HIA is committed to safety for all
Queenslanders at work. HIA believes
A P Williams & Co
this can be achieved by retaining
and enforcing existing national
THE DUPLICATION OF RESPONSIBILITIES BETWEEN REGULATORS work health and safety laws for the
FOR WORKPLACE HEALTH AND SAFETY MUST BE AVOIDED
residential building industry without
the introduction of additional state-
specific requirements.
The default setting of solving emerging
problems with additional state-specific
regulation needs to be abandoned. In
Queensland the expense and effort put into
the proliferation of detailed safety codes
would be better spent on increased education
and enforcement of existing requirements.
The significant funds collected via the work
health and safety (WHS) levy should be
fully allocated to resources and programs
to overcome any shortage of building
and construction inspectors, along with
educational campaigns including ‘how to’ and
‘deemed to comply’ information.
The duplication of responsibilities between
regulators for workplace health and safety
must be avoided to prevent confusion for all
stakeholders, for example, the QBCC takes
an active interest in safety through reporting
requirements on safety matters. HIA maintains
that Queensland Workplace Health and Safety
should be the sole arbiter in relation to safety
obligations being met.
HIA calls on an incoming
State Government to:
• reduce the duplication of reporting
requirements and governance for WHS
matters;
• provide greater clarity in the requirements
of legislation, codes and standards;
• increase industry education on WHS
matters;
• ensure future changes to legislation,
regulation, codes of practice and
standards, are made as part of uniform
national changes to ensure consistency
across jurisdictions, recognising the
significant cross border workforce.
HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION 1112 HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION
6 ENSURE FAIRNESS
FOR CONTRACTORS
As the statutory body in charge of regulating the residential building industry
it is imperative that the Queensland Building and Construction Commission
(QBCC) establish regulatory procedures and processes based on an equitable
and balanced approach, for all parties, in a transparent manner.
As the building regulator the QBCC gathers significant data that can provide important insight
into the overall performance of the building industry. This information should be published to
assist both industry and government to improve industry performance.
Queensland is the most regulated state for home building in Australia. The growing regulatory
responsibilities of the QBCC has seen it struggle as it attempts to deliver meaningful
outcomes for everyone and in every area. The result is a regulatory approach that creates
competing priorities, is being openly rorted by both consumers and industry participants, and
creates a perception that the organisation is unwilling to tackle the fundamental issues in the
home building process.
To this end the legislative responsibilities of the QBCC should be reduced, and aligned to
other jurisdictions, to enable the Commission to focus on core areas of importance for the
Queensland building industry such as payment, accountability and licensing.
The QBCC needs to be staffed by an appropriately qualified and skilled workforce with
a detailed understanding of the regulatory requirements for all parties to ensure they are
equipped to make decisions that reflect the intention of the legislation.
HIA calls on an incoming State Government to:
• review home building licensing categories to reduce duplication and ensure
the licensing regime reflects modern construction techniques;
• implement an equitable process to address sub-standard outcomes delivered
by subcontractors;
• improve and provide clarity on Dispute Resolution processes;
• introduce a refundable application fee for consumer complaints;
• introduce a review process for insurance payout decisions;
• review the Home Warranty insurance scheme and its fee structure;
• increase the threshold for licensed work to $10,000.
Eastbuild Designer Homes
QUEENSLAND IS THE MOST REGULATED STATE FOR HOME BUILDING IN AUSTRALIA
HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTION 137 SECURE A SKILLED
WORKFORCE FOR THE FUTURE
As the residential building workforce ages and the number of businesses
employing apprentices declines, greater emphasis is needed on securing a
skilled workforce for the future.
Disappointingly, trade qualifications continue to be viewed as a fall back for many young people
unable or uninclined to university education. Trade qualifications must be recognised as a career
of first choice by government, educators, parents and students.
Employers, including Group Training Organisations (GTOs), who take on apprentices provide a
significant training pathway and need to be incentivised wherever possible rather than being tied
up in overly burdensome red tape.
Employer hosts supplement government and private sector training schemes with much needed
mentoring and ‘hands on’ training for young workers. Much of this training is provided with little
return to the business in the short term. However, this critical training is pursued to ensure the
provision of skilled workers generating long term benefits for the housing industry and therefore
the broader Queensland economy.
There are currently numerous disincentives for employers in hiring and training apprentices in the
building industry. The significant cost of employment, training and administrative requirements
under state training laws make the continued downward trend of apprentices likely to continue.
The collapse of GTOs as a viable starting point in training of young apprentices is a real
possibility in Queensland and must be avoided. Including GTO’s under the government’s labour
hire legislation has not helped.
Access to a vehicle can be a crucial component of securing an apprentice but the annual costs
associated with running a vehicle can be an impediment. Construction workers need to travel
and it is essential that apprentices have their own vehicle. An apprentice that has their own
vehicle is distinctly more employable than an apprentice that does not.
HIA calls on an incoming State Government to:
• give greater support and recognition to group training organisations that provide critical
training, combined with pastoral care that supports higher completion rates for apprentices;
• embark on a program to promote, together with the housing industry, the construction
trades as a legitimate and rewarding career path;
• increase support for adult apprentices and those businesses hiring them;
• follow the lead of other states and provide a 50 per cent rebate on the cost of insurance
and registration for a vehicle used by an apprentice undertaking a construction trade;
• commit to exempting GTO’s from labour hire legislation;
• permanently exempt all apprentice wages from payroll tax;
• permanently exempt all apprentice wages from workers compensation premiums.
14 HIA POLICY IMPERATIVES: 2020 QUEENSLAND ELECTIONHOME OWNERSHIP MATTERS
For further information contact: Mike Roberts Executive Director, HIA Queensland 14 Edmondstone Street South Brisbane QLD 4101 E: m.roberts@hia.com.au T: 07 3021 8800 hia.com.au Authorised by Graham Wolfe, Housing Industry Association Limited, Canberra The Housing Industry Association (HIA) is Australia’s only national industry association representing the interests of the residential building and construction industry. As the voice of the residential building industry, HIA represents a membership of 60,000 across Australia. Our members are involved in delivering more than 170,000 new homes each year through the construction of new housing estates, detach homes, low and medium-density housing developments, apartment buildings and completing renovations on Australia’s 9 million existing homes. 16 HIA KEY PLATFORMS FOR THE 2020 NORTHERN TERRITORY ELECTION
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