In a one page bulletin produced last week, the HIA called for interest rate cuts and supply side reforms to arrest the on-going decline in residential construction activity in Australia. The HIA represents the construction industry and by proxy has a vested interest in construction activity; however there is growing evidence of supply side problems with concerns over national dwelling shortages, rental vacancy rates and prohibitive stamp duty taxes.
On top of calling for an extension the Housing Affordability Fund (HAF) and building industry financing guarantees, the HIA suggest an amendment of capital allowance provisions to enable accelerated depreciation of new rental dwellings.
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