Friday | 13 June 2025

In this Edition...

1. Housing is central to the productivity push

2. Federal Housing Minister rolls out second term agenda

3. Premier riffs on “the city with no grandchildren” theme

...and much, much more.

4. Faith Housing Australia - the problem's the Planning Act
5. Liberal MP for Vaucluse tries the old two card trick
6. Temporary groundwater exemption for home construction activities
7. Housing Delivery Authority Round 9
8. PAYCE Foundation – changing lives through partnership
9. Queensland Housing Infrastructure fund oversubscribed
10. South Australia gets its first skyscraper … enter the “knuckle draggers”
11. Council Watch - Northern Beaches
12. Members in the news

1.  Housing is central to the productivity push

The PM played the productivity card this week

The Prime Minister delivered a key speech to the National Press Club this week doubling down on his Treasurer’s talk that the Albanese Government’s second term will be focussed on productivity. 

The Prime Minister announced he will convene a productivity summit in August – involving business and the union movement, to work out ways to boost productivity around tax reform, deregulation and fast-tracking major projects. 

And not a moment too soon, with productivity across the nation stagnating over and beyond the past decade to their lowest levels in 60 years. And the construction industry is one of the stragglers in terms of productivity, with the recent Productivity Commission funding that productivity in the construction sector had declined by 12 per cent over the past 30 years - even as productivity increased by 49 per cent across the rest of the economy. 

Urban Taskforce's submission to the Federal Productivity Commission was a to do list for the upcoming summit: 

• Reduce Corporate taxes 

• The Federal Government must establish meaningful incentives the States to remove building regulations and streamlining the planning red tape laden processes 

• Reduce Government fees taxes and charges on the production of housing 

• Drive productivity by investing in modern methods of construction 

Let’s hope the upcoming Productivity Summit takes on these ideas and more. What we can’t afford to see is this a summit that purports to drive productivity descending into a festival of virtue signalling self-promotion. 

Prime Minister Albanese has a raft of Productivity Commission Reports and research to help guide debate – from the 2017 Shifting the Dial Report through to the recent Productivity Commission research paper focussed on the construction sector.  

The role of housing in the productivity agenda of the second term of the Albanese Government is of critical importance. How and where Australians live greatly impacts how productive (or non-productive) the nation is.  

Right now – the decline of productivity in the construction sector is a drag on the resources of the most productive elements of society.  Peter Achterstraat has regularly stated that Sydney risks becoming the city with no grandchildren. 

The most productive elements in our society are those aged between 30 and 40.  But the housing supply crisis is driving up costs and forcing younger generations out. This is creating short, medium and longer term problems – both societal and economic. 

2.  Federal Housing Minister rolls out second term agenda

Minister for Housing, Homelessness and Cities, Hon Clare O’Neil MP

After some thoughtful contributions from the Assistant Minister for Productivity, Dr Andrew Leigh MP last week on the “thicket of regulation” strangling housing supply, the Federal Housing Minister Clare O’Neil has iterated this pithy phrase, saying: 

Urban Taskforce notes that it is even worse that Minister O’Neil describes.  This “thicket of regulation” is not only distracting for builders, it is sending them broke. 

On the positive front, Minister O’Neil again honed in on the State’s planning systems, believing more can be done. We agree – and the bipartisan approach in NSW is generating enthusiasm for clearing out the cobwebs and breaking open the padlocks that have bound the old EP&A Act.  Putting a broom through the planning rules is needed to have a planning framework that is pro housing rather than an entrenched opponent.  

The clear vote against the Greens in the Federal election reflects a growing view that the political left needs to rethink regulation and the impact it has on those it purports to represent.  

The recent US publication “Abundance” unpacks what the zeal for more and more regulation has done to most people over recent decades – it has worked to create an artificial scarcity in many of life’s essentials - none more so than housing. This is directly applicable to Australia. 

While ageing boomer NIMBY’s have done well out of regulatory overkill that is embedded in most planning systems across the Anglosphere, it has had a major negative impact on younger generations and those struggling to put a roof over their head.

A rethink could not come soon enough.

The fact that since the election, responsibility for Housing has been consolidated and brought into the Treasury Department is another positive development. The Treasury team will need to do a lot of the heavy lifting when it comes to breaking the back of the housing supply crisis.

Rewarding states that reform and deliver of their National Housing Accord targets, as well as addressing housing enabling infrastructure backlogs are two key areas for the Commonwealth.

To read a number of articles published this week setting out Minister’s O’Neil’s agenda in the second term, click on the buttons below.

3.  Premier riffs on “the city with no grandchildren” theme

The NSW Premier was again warning that without more housing, the future of Sydney was decidedly bleak. Or rather grey, as Sydney’s best, brightest and youngest head off to cities where housing is not such an economic and lifestyle deadweight.

The Premier noted that NSW was not building enough homes in comparison to other states on the eastern seaboard, adding that planning reform was next cab off the rank when it came to key Government reforms.

While true, it is also tinged with unintentional irony.  The Government has stepped back from greenfield housing supply – the preferred choice of many young families made impossible by the constraints on supply enforced through the under funding of infrastructure. 

If young families who choose to live in a greenfield home can’t find that option at an affordable price in Sydney, they will, of course, head to a place where there are jobs and homes at affordable prices – Brisbane and Melbourne are reaping the benefits while the Premier of NSW wonders how it happened.

We absolutely need more infill development and higher density, but we will never get close to the housing targets with this alone.  Greenfield housing is a critical part of the mix and must be supported.

In the meantime, reforms to the EP&A Act need to be through both houses of Parliament well before the year’s end for there to be any impact on housing supply over the remainder of the National Housing Accord period.

Proudly Supporting the Future of Development

Altogether is proud to sponsor the Urban Taskforce Development Excellence Awards 2025—a celebration of the vision, innovation, and impact that shape our cities and communities.

At Altogether, we believe in working from within communities to deliver essential energy, water, and data solutions that drive sustainable prosperity. With over 500 communities already benefiting from our expertise, we’re committed to creating stronger, more resilient places for generations to come.

We’re honoured to stand alongside Urban Taskforce and its members in recognising the people and projects building a better tomorrow.

4.  Faith Housing Australia - the problem's the Planning Act

But it’s not just the Act – much of the problem comes with the culture of planners in DPHI and Councils. Restrictive and unresponsive zoning rules are the worst case in point. This is the province of so-called strategic planners.

A large number of sites owned by faith-based organisations are simply not zoned to allow housing supply (even if it is social housing, affordable housing or crisis accommodation). If they were, it could not only help with housing supply but also assist the day-in day-out work of these groups.

But planning is looking at it with a 19^th century lens, rather than a modern one.

When Church groups start singling out moribund planning laws cruelling their aim to provide more housing, you know there’s a big problem with planning in NSW. Time for reform.   

5. Liberal MP for Vaucluse tries the old two card trick

The State Member for Vaucluse has been quiet on the housing front for a while. She burst onto the scene during the course of the 2023 State election when she declared that the eastern suburbs “should not be punished by housing.” 

She picked up an Urban Taskforce NIMBY of the Year Award for that line! 

This week she obviously decided to give her NIMBY credentials another run, opposing the State Government’s Low- and Mid-Rise housing reforms for Rose Bay because it didn’t have a “decent supermarket” (a slur on many fine grocers in the district!) She obviously does not like Andrew Bragg (Federal Opposition Housing spokesman who has lambasted those opposing housing supply). 

Ms Sloane told a crowd of locals that she only supported development that “enhances not erodes the character and the liveability of our community.”  

A quick check of the Dictionary of NIMBY Idioms and Phrases shows this means – “I do not support any increase in height and density in my locality under any circumstance.” 

But this line about the supermarket rang a bell. The Research team at Urban Taskforce dug into the Urban Living Network archives and discovered the very same Kellie Sloane MP (in August 2023) opposing a Woolworths development due to its size – telling the Daily Telegraph she supported residents opposed to a larger supermarket at Rose Bay.  

In a classic case of have your cake and eat it too, Kelly Sloane has opposed a new Supermarket, then used the absence of the supermarket to oppose Low and Mid-Rise planning reforms for the very same area.

A clumsy attempt at a two card trick shows not only the divisions in the Opposition, but how out of touch many are with the pressing need for more housing in Sydney. We have MP’s in the east and north fighting off Teal challenges and going rogue when it comes to housing supply and taking their fair share in their high amenity and well service electorates. .

The Leader of the Opposition, Mark Speakman, has moved on from his own NIMBY tendencies in the Shire – time for him to get these MP’s into line.

6. Temporary groundwater exemption for home construction activities

 The licence exemptions apply to:

• Coastal construction projects until June 2029
• Essential infrastructure projects including road, rail, utility and other works delivered by public authorities across NSW
• Water infrastructure projects delivered by private bodies with approved schemes under the Water Industry Competition Act 2006

This nuts-and-bolts reform follows an industry forum attended by Urban Taskforce and its members along with all the Water agencies (Sydney Water, Water NSW and DCCEEW).

7. Housing Delivery Authority Round 9

The HDA continues to roll on – meeting for the ninth time on 2 June to assess applications for State Significant assessment.

The HDA recommended 16 projects to be declared State Significant, representing potentially 7,026 new dwellings.

The Minister has also declared a further 20 projects as State Significant Development following previous recommendations from the HDA.

Since the start of the year, 136 proposals amounting to more than 53,300 potential homes have been declared state significant.

The Minister noted that since the formation of the HDA – 47 projects have had Secretary Environmental Assessment Requirements (SEARS) issued and just one Development Application has been lodged. Let’s hope there are more DA’s just around the corner!

8. PAYCE Foundation – changing lives through partnership

9. Queensland Housing Infrastructure fund oversubscribed

Demand for housing enabling infrastructure outstrips its supply

The Queensland Crisafuli Government’s $2 billion Residential Activation Fund has received a strong response, with 170 applications for funding. Round 1 focuses on projects that are ready to proceed now, with $500 million of the $2 billion fund available.

The fund will prioritise shovel-ready projects, focusing on construction of critical trunk infrastructure needed such as water supply, sewerage, stormwater and roads needed to unlock new residential developments. Announcements will be made from July 2025 onwards.

Housing enabling infrastructure is critical to ensuring more housing. All the planning reform in the world will matter little if you can’t connect homes to water and roads.

While the States do what they can, we need the financial muscle of the Federal Government to come to the party to really kick along housing, particularly in greenfield locations.

10. South Australia gets its first skyscraper … enter the “knuckle draggers”

This hasn’t stopped the nay-sayers getting out and bemoaning this investment in the South Australian capital, with the usual suspects (including the Greens) whining that a skyscraper next to Parliament was an abject tragedy.

They really wouldn’t like New York!!

11. Council Watch - Northern Beaches

northern beaches council [sic] has a draft Development Control Plan out on exhibition in response to the NSW Government’s low-and mid-rise reforms. The policy overrides council planning controls – which is basically a red rag to a bull when it comes to these Councils unwilling to take their fair sharing of housing.

The second stage of the LMR reform identified well located and service town centres capable of increased housing density. The 9 identified town centres on the Northern Beaches are:

• Balgowlah
• Brookvale
• Dee Why
• Forestville
• Forest Way
• Frenchs Forest
• Manly
• Manly Vale
• Mona Vale

You already know the tone of the draft DCP when Council introduces their background briefing for the new DCP with this:

In other words - we can’t stop the potential new housing through this SEPP, but we can certainly make it harder through these controls …

Unfortunately DPHI left enough holes in the Housing SEPP to allow Councils like Northern Beaches to fill in the “detail”. Will the NSW Government sit back and allow this reform to be white-anted in such a fashion?

Eurobodalla - Batemans Bay

On the other hand, good news with Eurobodalla’s Strategic Planner, Vivian Straw, deserving praise for reimagining the future for Bateman’s Bay, with a draft Masterplan envisaging residential towers up to 100 metres in height. We were impressed with the rationale:

Does the man want a job with northern beaches council [sic]???

12. Members in the News

*Please note these articles may be paywall protected

“… Coronation Property is shaping plans for another 1,000-plus apartments at its precinct in Sydney’s Erskineville... read more... 

To read more, click here:                  The Urban Developer, 9 June

"… Developer Investa has confirmed that it is in talks to find a new builder for its Indi Footscray build-to-rent project… read more...

To read more, click here:                       The Urban Developer, 10 June

"… A competitive tender process led to construction company Multiplex being awarded the contract to deliver the project from initial concept through to final design and construction ... read more...

To read more, click here:                Architecture, AU, 11 June

"… The project, according to documents by Willowtree Planning, would comprise 94 units, of which 20 would be affordable and 32 as build-to-rent​ ... read more...

To read more, click here:                The Urban Developer, 11 June

"… Central Element has won court approval for a $150-million luxury project on one of Bondi’s most exclusive coastal sites ... read more...

To read more, click here:               The Urban Developer, 11 June

"… The country’s largest commercial real estate agency CBRE has inked a deal to acquire national real estate agency Burgess Rawson to boost its presence in the popular small-scale auctions market​ ... read more...

To read more, click here:                The Australian, 12 June

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