The Building Bottleneck: 5 Things the government must act on - NOW!

30th June 2025

Finance & Budgeting Pre-Construction During Construction Post-Construction Legal & Contracts First Home Buyer Investor News & Industry Insights

In this episode, Colin Bischof and Darren Brennan unpack the five critical actions the government must take to fix Australia’s housing bottleneck. From fast-tracking approvals to reducing developer taxes, they explore practical solutions to restore affordability and momentum in the home building industry.

The Building Bottleneck: 5 Things the Government Must Act On - NOW!

Australia’s housing crisis continues to deepen, and despite the government’s target of 1.2 million new homes over the next five years, we are falling well behind. In this episode of the Home Building Hub Podcast, hosts Colin Bischof and Darren Brennan break down the five key actions the government must take now to unlock housing supply, address affordability, and get the industry back on track.

1. Fast Track the Planning and Approval Process

The first and most urgent issue is the length of time it takes for developments to get approved. Developers are facing costly delays with planning, zoning, and heritage assessments that can stretch for months or even years.

What’s happening:

• Slow council approvals are pushing back project start dates.

• Holding costs for developers are skyrocketing, often reaching millions each year.

• Outdated paper-based systems are adding unnecessary red tape.

What needs to change:

• Introduce a digital approvals system to replace paper trails.

• Create a fast lane for shovel-ready developments that already have infrastructure in place.

• Streamline local council processes to reduce bottlenecks.

2. Incentivise Land Release and Infrastructure Investment

Without land, builders simply can’t build. Governments must address the critical shortage of developable land, especially in high-demand regions like Melbourne.

Proposed solutions:

• Unlock more greenfield land with investment in essential infrastructure – roads, schools, and utilities.

• Offer tax incentives and grants for new land releases.

• Co-invest with developers to accelerate land supply.

As Colin notes, “A first home buyer grant is excellent and very helpful, but not if there’s no land.”

3. Reform Labour and Material Supply Chains

Labour shortages and material price spikes continue to cripple timelines and margins across the construction industry. Build times have stretched to record lengths, with Western Australia peaking at 16 months.

What the government should do:

• Expand skilled migration pathways for trades and construction workers.

• Invest in training programs for apprentices to make trades an attractive career choice.

• Cut tariffs and increase access to building materials to reduce costs.

• Balance government contracts to avoid over-saturating trades in public projects.

As Darren puts it, “We need to make being a plumber or electrician a cool job again.”

4. Rethink Unrealistic Housing Targets

The target of 1.2 million homes sounds ambitious but may not reflect the real capacity of the industry. According to the HIA, we’re currently on track for just 983,000 homes – leaving us over 200,000 short.

Key points:

• Work with industry bodies and builders to set realistic and achievable targets.

• Base progress on completions, not just approvals or permits.

• Establish rolling quarterly benchmarks with clear accountability.

Colin sums it up perfectly: “I’m not interested in what sounds great – I’m interested in what’s realistic.”

5. Reduce Taxes and Holding Costs to Encourage Development

Developers are burdened with excessive taxes and levies, many of which are ultimately passed on to buyers. In Victoria, roughly half the cost of a block of land goes to government fees, taxes, and contributions.

Suggested reforms:

• Review and reduce stamp duty and land tax on undeveloped lots.

• Reconsider the windfall gains tax and other charges that discourage development.

• Offer tax deferrals or rebates for developers who meet housing targets.

• Address capital gains and developer contribution reforms to keep land affordable.

As Darren explains, “It’s not a demand issue – it’s a supply issue. Fix supply, and you fix affordability.”

Why This Matters

Without urgent reform, Australia risks creating a situation where migration and population growth far outpace available housing. The result? Rising rents, unaffordable home prices, and increased social pressure.

Both Colin and Darren stress the need for collaboration between industry experts, government bodies, and developers to ensure Australia’s housing future remains sustainable and affordable.

Key Takeaways

• Fast-track approvals to cut delays and reduce developer holding costs.

• Incentivise land release through grants and co-investment in infrastructure.

• Boost the workforce with trade training and skilled migration.

• Set realistic housing targets with industry collaboration.

• Reduce taxes and charges to encourage development and affordability.

Australia’s housing crisis won’t be solved overnight, but decisive action on these five fronts could restore balance and momentum to the building industry.

🎧 Listen to the full episode: The Building Bottleneck: 5 Things the Government Must Act On - NOW!

Glossary of Terms

Greenfield Land: Undeveloped land typically located on the outskirts of cities, designated for new housing or infrastructure. NCC Requirements: National Construction Code standards that govern building performance and compliance in Australia. HIA: Housing Industry Association – the official body representing Australia’s residential building industry. Shovel-ready Developments: Projects that have completed all planning and are ready to begin construction immediately. Windfall Gains Tax: A state tax applied to property owners when land is rezoned and significantly increases in value.

Frequently Asked Questions (FAQ)

Q: Why is it taking so long for new housing developments to start? A: Lengthy council approvals, outdated systems, and red tape are major causes of delays before construction even begins.

Q: How can the government actually speed up housing delivery? A: By digitising approval processes, cutting unnecessary taxes, and collaborating directly with builders and developers to streamline delivery.

Q: Will reducing taxes on developers make homes cheaper? A: Yes – many costs are passed to buyers, so lowering taxes on land and development helps make housing more affordable.

Q: Is migration really contributing to the housing shortage? A: Migration adds demand, but the core issue is supply. If more land and approvals were available, the market could meet that demand.

About the Home Building Hub Podcast

The Home Building Hub Podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process - completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips. Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

This article was generated by AI based on a transcript of our podcast episode and may contain inaccuracies or omissions. Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.