In Australia, the cost of housing is one of the country’s biggest priorities, as was well documented during the 2025 federal election. So will the government be making it a focus as it pursues economic reform?
The agenda has been released for treasurer Jim Chalmers’ Economic Reform Roundtable, which is to be held from August 19 to 21 at Parliament House in Canberra.
The Treasurer has released the agenda for his upcoming economic reform roundtable. Image: Getty
And while housing specifically does not appear on the official list of topics for the event, those in the housing industry are very much hoping that it’s included between the lines.
Over three days centred around the themes of “resilience,” “productivity” and “budget sustainability and tax reform,” attendees from across the business sector, unions, civil society, government and other experts will engage on a variety of topics. Those include dedicated sessions on skills attraction, AI innovation, productivity reform, better regulation and approvals, and tax reform – all areas that could have meaningful impact on home-building as well as the broader property market.
Productivity interlinked with housing
The Housing Industry Association (HIA) is making the case for housing to centre in these discussions.
“You cannot talk about productivity, economic growth or improving living standards without discussing housing,” said HIA managing director, Jocelyn Martin.
“Red tape, regulation and delay are adding enormous costs to the delivery of new homes. If we want to see real reform, we need to boost productivity in our industry, cut the burden of unnecessary building and planning rules, and start making it easier to build the homes."
The Australian Constructors Association (ACA) have particularly argued for construction reform to be on the agenda, noting that while it was not set to be addressed explicitly, the potential gains from construction reform were too large to ignore when discussing ways to improve the nation’s economy.
Set to be held at Parliament House, the Economic Reform Roundtable will take place from August 19 to 21. Image: Getty
The association estimated that increased efficiency in construction could amount to as much as a $56 billion annual boost to the nation.
“Industrial relations might not suit the palate of the roundtable hosts, but if we’re serious about improving productivity, it must be on the table,” said ACA CEO Jon Davies.
“We cannot continue a situation where many construction sites are only able to achieve three days productive work in any given week."
The Urban Development Institute of Australia (UDIA) has also petitioned for housing productivity to be a discussion point.
"The most effective way to kickstart economic growth and productivity is to stimulate housing development," said UDIA President, Col Dutton.
"Each housing dollar supports over 40 other sectors, from retail to manufacturing. Housing is not just a fundamental need; it is an unrivalled economic multiplier."
In a submission regarding the roundtable, the UDIA has asked the government to look at methods of clearing the environmental approval backlog, fast-tracking enabling infrastructure, incentivising faster approvals, and pausing changes to the National Construction Code.
HIA has also made a submission to Treasury arguing that the taxes and charges added to the cost of new homes must be reexamined and reduced, so as to make the cost of building more affordable for buyers and therefore incentivise investment in the sector.
“The taxes and charges on a typical house and land package in Sydney can now exceed $500,000, costs that are ultimately paid by new home buyers and locked into mortgages for decades,” said Ms Martin.
“We’re calling on all levels of governments to stop taxing new homes like they’re a luxury item. Apart from alcohol and cigarettes, there’s no other sector more heavily taxed than housing."
Calls grow for property tax check-up
In addition to the HIA’s call to reassess taxes levied on new home building, attention is also mounting on the regulatory settings that govern what property investors owe.
The Australian Council of Trade Unions (ACTU), which represents almost two million workers in Australia, is pushing for the government to reconsider the tax arrangements around negative gearing and capital gains from housing.
“We cannot continue down the same path of giving investors tax supports while owning your own home gets further out of reach for average workers and becomes nearly unimaginable for young people," said ACTU secretary Sally McManus.
The ACTU supports limiting tax breaks and capital gains discounts to a single investment property, while grandfathering in the existing rules for five years to give property investors time to adjust to new arrangements.
This call comes on the heels of a proposal from the McKell Institute encouraging the federal government to incentivise investors to buy new apartments over existing houses by increasing the CGT discount on new apartments and units to 70% from 50%, while decreasing the CGT discount on existing detached houses to 35% from 50%.
It would leave the CGT discount on new detached houses unchanged at 50%, and grandfather all existing investments.
Are you interested in learning more about Australian home-building? Check out our dedicated New Homes section.
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