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Budget not enough to halt construction downturn

The 2020 Federal Budget is “very much one of housing hits and misses”, according to the Australian Institute of Architects, who warn it may not be enough to stop new construction projects from drying up.

Institute CEO Julia Cambage said architects were “the canary in the coal mine” for the construction sector.

“Our members are at the very start of the construction supply chain,” Ms Cambage said.

“Design is the first point from which all the other jobs flow, from engineers and surveyors to brickies, plumbers and painters.

“We have measured the impact COVID-19 has had on the pipeline of future construction projects and it points to a dramatic and widespread stalling and slowdown of work.”

Ms Cambage acknowledged that an increase in the debt ceiling for the Affordable Housing Bond Aggregator, more funding for Indigenous home ownership, and an extension of support for first home owners are positive measures, but says they “are not enough to stave off the looming downturn” in construction activity.

“Only $0.6 million over four years from 2020-21 has been allocated to boost housing demand and support the residential construction industry in the face of plummeting activity levels,” Ms Cambage explained.

“If this Budget is all about jobs, it is hard to fathom why major stimulus opportunities such as more significant direct social housing investment and support for social infrastructure projects were overlooked, especially when they have such wide-ranging support from a majority of leading economists to community organisations.

“This type of large-scale legacy building achieves both the immediate stimulus needed for recovery while also delivering lasting benefit.

“The level of adversity we currently face demands innovation and entrepreneurship in the policy response for it to be truly successful and to maximise value from the vast expenditure of public funds.

“Housing, jobs and increased economic activity go hand in hand.”

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