18 March 2020
QUEENSLAND’S struggling building industry continues to be hammered by extreme weather conditions, a global pandemic, and sliding building approvals, with no light at the end of the tunnel.
The latest Building Approvals from the Australian Bureau of Statistics confirm the bleak situation, with 30,090 approvals for the 12 months to January 2020, the lowest approvals since 2013, down 20 per cent over the year.
Master Builders Deputy CEO, Paul Bidwell, said it’s now a crucial time for the federal and Queensland Governments to focus on stimulus and relief measures for an industry that is most certainly on its knees.
“2020 was always going to be a tough year, with low building approvals, tightening financial requirements, and lack of investor confidence. But now we throw the impact of COVID-19 into the mix, and it really is time for governments to act,” Mr Bidwell said.
“When it comes to COVID-19, we’re yet to see the true impact this will have on the building supply chain, our available workforces and the overall demand for building work, but it’s definitely starting to bite.
“This is of significant concern for our industry, especially the small family businesses that are responsible for half the turnover in our industry and cannot sustain prolonged periods of little or no activity.
“Over the next nine months, there are some key opportunities for governments to provide support, starting with another wave of relief in the wake of the economic implications of COVID-19.
“We are urging governments to not just support businesses through this period with initiatives like apprentice support and instant asset write-offs; it’s imperative they also take steps to increase building work. We should look to the GFC and programs like the Building the Education Revolution for inspiration.
“With the Queensland Budget to be handed down in April, we’re urging the Treasurer to return the boost to the First Home Owner’s Grant in regional Queensland and commit to increasing capital expenditure on public buildings.
“Both the federal and Queensland Government should also consider increasing the First Home Owners’ Grant from $15,000 to $40,000, which was done effectively during the GFC; and expanding the number of First Home Loan Deposit Scheme loans on offer and ringfencing this funding for new construction.
“There also opportunities for governments to create demand and work for the residential renovation sector, which will have long-term benefits for the community more broadly.”
The Household Resilience Program (which ran from July 2018 – November 2019) was a resounding success in improving the resilience of almost 2,000 homes in cyclone-impacted regions from Bundaberg to Cairns, as well as delivering significant insurance benefit to homeowners.
“We urge both governments to consider rolling out the program again in 2021 and continuing to deliver these benefits,” Mr Bidwell said.
“Another measure that would boost the renovation market is funding homeowners to undertake renovations that would assist them to make their homes more energy efficient (6-star requirements) or more accessible.
“The Queensland Government should also commit to delaying any new legislation or regulation until 2021. Changes to building industry laws scheduled for 1 July 2020 and strict enforcement of minimum financial requirements will spell disaster.
“They should also look to committing to not charging liquidated damages on existing commercial projects where delays are experienced due to product supply or labour shortages as a direct result of COVID-19.”
The stark reality for now is that most regional centres have dwelling approvals down 30 per cent on the previous 12 months and it’s only likely to get worse.
“Queensland, and particularly regional areas, need support to get building again,” Mr Bidwell added.
“We need solutions that will create demand and inject confidence back into the community to encourage consumers and investors to build new homes or invest in new projects.
“Without relief and stimulus measures and initiatives like these our industry faces a dire future.”
Regional numbers
ENDS
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Julie Russell, Manager Communications & Media via email at julie.russell@mbqld.com.au or on 3225 6436
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