I’ve Had Enough of Being a Laughingstock

In the week I sat down to write my editorial for this June’s Builders’ Bulletin, I spent two days at a conference in Adelaide. In rooms shared with other independent businesses, I thought I might have received some praise for the way Bowens has managed the issues emanating from the Iran conflict or been excited about new learnings shared by conference speakers and energised by the united fight to ward off the ‘evil’ of large corporates. Instead, my time was filled defending the State of Victoria. To be fair, my “defence” was little more than weak denials, leading to eventual affirmation of the sledges thrown my way. It is unequivocal. We have become a laughingstock.

“It is unequivocal. We have become a laughingstock.”

At one point last year, I promised to share only positive, constructive thoughts when writing about Victoria … I have frequently missed the mark or found other topics to avert my attention. Maintaining a positive outlook isn’t easy.

My preparation for a Board meeting in May included some slides from a recent HIA economics presentation by Tim Reardon, ‘State of the Nation’. He trashed us, using indisputable facts: since 2019, we are the only state in which the prices for newly constructed houses have grown at a faster rate than established homes. Our population is falling well short of previous forecasts, job growth is flat, building approvals are lagging, the time taken for planning approvals is the nation’s slowest, and we are building fewer detached homes than every year of the past decade.

“We are building fewer detached homes than every year of the past decade”

Despite strong underlying demand, home building activity remains subdued, constrained by a combination of high taxes, regulatory complexity and, again, slow planning processes. The state is increasingly viewed as Australia’s least competitive jurisdiction for residential construction, with the cost and time required to deliver new housing rising sharply. If I had an opportunity to advise the government or its opposition, what would I say? In which direction would I point them?

A central priority must be to reduce the rules governing the practice of building. No doubt, effective regulation is essential to protect consumers and maintain quality standards, however, Bowens’ customers regularly complain that the current system is characterised by duplication, frequent changes and administrative inefficiencies. For such a critical first step along the road to building more homes, frustration is the norm. By missing the mark, project costs increase, jobs are delayed, and further investments are deferred. I have been hearing the same complaints since I entered this industry over thirty years ago: a comprehensive review of existing planning directives is required, and regulatory layers must evolve to better accommodate modern construction techniques, such as prefabrication and modular building (in Australia), which offer opportunities to improve productivity and reduce project timelines.

“I have been hearing the same complaints since I entered this industry over thirty years ago”

Equally important is the need to lower property taxes and remove barriers to investment. Over recent years, taxation on housing has risen significantly. According to the HIA, it has outpaced income growth and placed additional pressure on both buyers and developers. A year ago, in reference to a report commissioned from the Centre for International Economics (CIE) on Taxation of the Housing Sector,  HIA Executive Director, Victoria, Keith Ryan said, “ … an astounding $373,000, or 43 per cent, of the cost of a new house and land package in Melbourne is comprised of government taxes, regulatory costs and charges. Since the last report in 2019, the value of taxes and charges has increased by a staggering 73 per cent, or $157,000.” For a law-abiding family enterprise, such as Bowens, reforms to reduce the taxes paid on the land we own and operate also need to be reviewed. The recent growth in charges is immoral.

Addressing workforce shortages is another critical pillar. The residential construction sector faces a significant shortfall in skilled labour, exacerbated by declining numbers of new entrants into the industry. This fact is well known, so why isn’t meaningful action being taken? My personal view – I’d like to see the university fees scheme (HELP, previously HECS) widened to include industry apprenticeships. If the government is prepared to establish student loans for arts, computing and dental students, why not do the same for our budding electricians, plumbers and carpenters? The employers’ payment, plus the HELP contribution to supplement earnings as ‘student tradies’, would better encourage the option of building a career in our great industry.

Land supply remains a fundamental constraint on housing availability. A consistent pipeline of development-ready land is essential to maintain affordability and meet population growth. However, delays in precinct structure planning and policy settings restrict greenfield development. Improving coordination across government agencies, supporting market-led development proposals and increasing transparency in planning data would all contribute to unlocking new supply and improving market responsiveness.

“A consistent pipeline of development-ready land is essential to maintain affordability and meet population growth.”

The efficiency of the planning system itself represents a further area for reform. Lengthy approval timeframes (as said, the longest in Australia) and high processing costs add significant uncertainty and expense to new housing projects. Streamlining planning, reviewing restrictive overlays and ensuring policy objectives do not inadvertently create new barriers will be essential. In particular, reforms should aim to provide clearer guidance, greater flexibility and faster decision-making.

Finally, expanding housing choice — particularly in the social and affordable housing sectors — is crucial to addressing structural imbalances. Victoria’s level of social housing remains well below national benchmarks, contributing to long waiting lists and limited options for vulnerable families. Increasing supply will require sustained government investment, alongside mechanisms to encourage private sector participation. Importantly, any policy interventions must be carefully designed to avoid undermining the financial viability of new developments, which would ultimately reduce overall housing supply.

When I get my chance to offer a suggestion to the leaders of our next government, I’ll be making it clear. Delivering a growth agenda, with particular attention given to building more homes, is critical to not only meeting housing demand but also to supporting broader economic expansion and restoring Victoria’s reputation as the best place to live. It is my intention to reside in this state for the long term, and I am not interested in being disrespected for this decision. I expect our lawmakers to find the right path so we can once again stride the national stage with pride.