Whats Next For Development Policy?

This Saturday Australians go to the polls to electaccording to its spokesman Gary Humphries,
a new Federal Government. However, whereas'there isn't likely to be a great deal of
the pre-election debate in 2007 included policies toreorganisation, as in wholesale ousting of
increase housing supply and affordability, there hasprogrammes. There will certainly be a refocusing
been scant focus on housing in 2010 by eitherof some of them, but the changes won't be
Gillard or Abbott, something quite remarkablemassive.'
considering community concern about the cost ofJulia Gillard's initiative to help councils clear the way
living.for development with a $200 million regional
While the Kevin 07 election message was aboutbuilding fund looks like a step in the right direction,
sympathy for family mortgage or rentalhowever the money is simply being shifted from
payments, and policies aimed at increasing supply,the rental affordability scheme.
house prices and rents have simply increasedWhat's entirely absent from the 2010 election
throughout the current Government's term.debate is what First National Real Estate and
The doubling of the first home-buyers' grant tomany industry lobby groups have called for - the
$14,000 helped 250,000 households and individualsneed to reform planning laws to help private
into the housing market. However, it pushed updevelopers increase housing stock.
prices and average first home loans also increasedThe Housing Industry Association (HIA) held a
from $230,000 to $290,000. So, many householdsone-day summit in Sydney last week, the
now have increased debt burdens with 11 peroutcome being statements that the supply of
cent of income now going on interest bills. Whilenew housing was being negatively affected by
this may be down from 14 per cent before theinequitable infrastructure funding models. It
GFC, it's actually double that of a decade ago.believes the lack of planning and approval
Renters remain 'stressed' with almost 170,000coordination and the requirement for developers
lower-income households paying more than halfto fund community infrastructure to win approval
their income in rent.makes the cost of development unaffordable.
Labor's National Rental Affordability scheme hasGary Humphries admits that local and state
run at a slower pace than anticipated withgovernments have been a key part of the
investors complaining about an excessivelyproblem with supply and intimates that the
bureaucratic approval process. Superannuationopposition would offer policies to remove the
funds have also given the scheme a wide berth.stumbling blocks. Detail, however, is lacking.
The commitment to build 20,000 affordableMeanwhile, the current government has
homes has similarly faltered, with newcommenced an inquiry into local and state planning
construction of low-income apartments beinglaws through the Council of Australian
stymied by 'not in my back yard' communityGovernments (COAG).
groups. Accusations have been made that theEither way, neither major party appears to offer
scheme undermines the ability of localnew policies related to supply and affordability
Governments to create and plan decentwith Labor offering yet another 'review' and
communities because of poor design and lack ofLiberal, a suggested but yet to be announced
parking.policy to remove obstacles to development.
The opposition has not released its policy but