Daily Buzz: Friday, 6 September
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PropertyBuzz, your daily dose of property news.
The worst states for home approvals revealed; what the latest economic indicators might mean for the RBA; and Victoria’s STRA tax meets further opposition
Welcome to Property Buzz! I’m Sebastian Holloman. Today is Friday, 06 September.
The Housing Industry Association (HIA) claims planning gridlock is hindering housing development, causing longer rental stays and exacerbating Australia’s housing shortage.
HIA’s Planning Blueprint Scorecard has evaluated the execution of government’s planning reform measures across states and territories, with South Australia and Western Australia scoring highest, with aggregate scores of 3 out of 5.
New South Wales, Northern Territory, and Queensland scored lowest with scores of 1.5 out of 5, with the HIA advising these states and territories to ensure continuous land supply, reduce regulatory barriers, and develop an infrastructure delivery program respectively.
In voicing that no state scored greater than a 3 out of 5 on progressing key planning reforms, the HIA called for bold leadership from all government levels to solve the planning and housing issues and fast-track housing delivery.
Despite the latest economic indicators showing slow GDP growth of 1.5 per cent from 2023 to 2024 – which is the weakest annual growth since 1991–1992 – experts are not predicting that the RBA will bring forward any cash rate cuts.
ABS data showed a 0.2 per cent rise in GDP for the June 2024 quarter, with household demand falling while government consumption contributed to modest growth.
Accounting firm BDO expects no sudden RBA moves, and highlighted the need to focus on boosting productivity and addressing the economic impact of intergenerational wealth transfer.
Deloitte also emphasised the need to prioritise public and private sector growth, and stressed that Australia’s private sector has stagnated while government spending has supported limited economic progress.
And in Victoria, the Short Term Accommodation Association of Australia (STAAA) has initiated a petition against the Victorian government’s proposed 7.5 per cent levy on short-stay rentals.
The Short Stay Levy Bill, if passed, will impose a 7.5 per cent tax on all short-stay bookings, exempting commercial accommodation providers and homeowners renting their principal residence.
The bill would also allow owners’ corporations to ban short stays with 75 per cent approval and empower local governments to establish their own regulations.
The STAAA’s petition raised concerns about the lack of public consultation, increased costs for travellers and property owners, inconsistent regulations, and potential harm to local businesses and jobs.
That’s Property Buzz for today. See you again tomorrow, 07 September, for your daily dose of Property Buzz.
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