Housing issues are set to dominate the discussions at the Economic Reform Roundtable this morning, as ministers, business leaders, and conservationists gather to address the complex challenge of increasing housing supply without compromising environmental integrity. The summit, which brings together key stakeholders, aims to find solutions to what has become a pressing national issue.
Productivity Commissioner Danielle Wood is expected to open the session titled “Better Regulation and Approvals,” where she will highlight the significant impact of environmental approvals on housing development. In a recent address to the National Press Club, Wood criticized the current regulatory framework, describing it as a tangle of “regulatory hair balls” that have infiltrated nearly every sector of the economy, leading to prolonged approval times for housing and infrastructure projects and subsequently hindering productivity.
Regulatory Hurdles and Housing Supply
The focus of the summit has shifted to outdated environmental laws that have remained unchanged despite efforts by both the former Morrison government and the current Albanese administration. Under these laws, federal approval is only required for developments that pose a risk to the environment, endangered species, or culturally sensitive areas. As a result, only a small fraction of projects fall under federal jurisdiction. However, reports indicate a backlog of 30,000 projects awaiting approval, including major industrial proposals, highlighting the need for more efficient processes.
Both Environment Minister Murray Watt and Housing Minister Clare O’Neil are present at the forum, tasked with finding a balance between environmental protection and expediting housing delivery. Wood pointed out that housing approval times have increased by 50% over the past three decades due to regulatory constraints, necessitating “hard conversations” about heritage and density restrictions.
Proposed Solutions and Political Tensions
Recent leaks of Treasury documents to the ABC suggest that the government may consider freezing changes to the National Construction Code as a strategy to accelerate housing approvals, a move reminiscent of a Coalition policy criticized by Labor during the 2025 election. Shadow Housing Minister Andrew Bragg has expressed skepticism, accusing the government of being “paralysed” by the conflict between housing needs and environmental protection.
“The government are hopeless when it comes to balancing the needs of more housing while protecting the environment. Labor are totally paralysed by this dilemma,” said Andrew Bragg.
Behind closed doors, Labor MPs acknowledge the magnitude of the problem, with Treasury documents indicating that the government is not on track to meet its election promise of building 1.2 million homes over five years. Senator Watt has been consulting with various stakeholders on reforms to the Environmental Protection and Biodiversity Act (EPBC), aiming for legislative changes by mid-next year after previous attempts failed.
Environmental and Economic Implications
The current system’s duplication of approvals at both state and federal levels has been a consistent complaint, with the federal process only commencing after state or territory approval. Stakeholders agree on the necessity of more housing and the obsolescence of Australia’s environmental laws, but the extent of compromise remains a contentious issue.
Graeme Samuel, who reviewed the EPBC Act in 2020, identified several areas where approval processes are unnecessarily prolonged. He emphasized the need for efficient and certain environmental approvals to facilitate proper investment.
“The first is local government planning laws and approvals, they can take an inordinate amount of time and of course the NIMBY (not-in-my-backyard) syndrome of local objectors can hold approvals up and in fact result in them never being obtained,” Samuel noted.
The same leaked documents also propose a national artificial intelligence plan to reduce environmental red tape, indicating a shift towards technological solutions.
Broader Economic and Political Context
While housing approvals are a primary concern, the summit also addresses the need to expedite approvals for renewable energy projects, which are crucial for meeting green energy targets. The tension between economic growth and conservation is underscored by the presence of BHP’s Australian president Geraldine Slattery and Australian Conservation Foundation chief Kelly O’Shanassy at the discussions.
Housing Minister Clare O’Neil has been vocal about the impact of red tape on housing supply, arguing that it excludes ordinary Australians from home ownership and inflates costs. Addressing these bottlenecks is now one of the government’s urgent priorities.
As the summit unfolds, Prime Minister Anthony Albanese is set to visit South Australia to inspect the state’s algal bloom crisis, showcasing his environmental commitment. Meanwhile, back in Canberra, summit attendees face the challenge of reconciling environmental protection with the urgent need for housing development.
As discussions continue, the outcomes of the summit could shape the future of housing and environmental policy in Australia, with significant implications for both economic growth and conservation efforts.
