LGAT calls for housing reform that tackles the real barriers to delivery
This week, we lodged our submission to the Productivity Commission's Interim Report on Housing Supply Regulation, urging a greater focus on the factors that are genuinely limiting housing delivery.
Housing supply depends on much more than the speed of planning assessments. Development-ready land, coordinated infrastructure delivery, strategic planning, investment, and construction capacity are all critical to turning approvals into completed homes.
What's needed is a more evidence-based approach to housing reform, one that recognises local conditions and ensures housing growth is aligned with infrastructure, services and community needs.
Tasmania's planning system is already performing strongly. The state was ranked second nationally in the Business Council of Australia's 2025 assessment of land use and planning systems, with less than one per cent of discretionary development applications refused and only 1.7 per cent of decisions appealed. These results demonstrate that local government is efficiently assessing development applications and that planning approvals are not the primary barrier to housing delivery.
Rather than focusing solely on planning approvals, we have identified seven priority actions that address the broader factors influencing housing supply:
Establish an effective statewide infrastructure contributions framework in partnership with local government
This is one of our long-standing priorities, to ensure the costs of growth-related infrastructure are shared fairly and transparently.
Increase and sustain investment in strategic planning
State, regional and local frameworks must be current, coordinated and supported by infrastructure planning, technical studies, sound demographic data and implementation funding.
Correct housing market settings
Housing policy should prioritise delivering affordable, high-quality homes for residents and discourage practices that limit housing availability, such as land banking or short-stay visitor accommodation.
Increase investment in social and affordable housing and its enabling infrastructure
Delivering more social and affordable housing will not succeed without funding for strategic planning, land acquisition, construction, enabling infrastructure, and community services.
Ensure local government has the powers, data, and resources needed for strategic planning and evidence-based regulation
This includes improved access to short-stay accommodation data and locally responsive planning tools that help councils address housing availability, rental vacancy and neighbourhood amenity issues where they arise.
Match housing targets and rezoning decisions with infrastructure
New housing growth must be backed by clear, funded infrastructure plans that outline how and when essential services and community assets will be delivered.
Provide direct and predictable Commonwealth and State funding, concessional finance and first-mover support for housing-enabling infrastructure
Financial Assistance Grants should remain untied, and any Commonwealth housing incentives should be additional and directed to housing-enabling infrastructure and implementation capability.
Importantly, councils must be recognised as partners in housing reform, not simply delivery agents. Local government should be directly involved in developing housing policies and infrastructure programs that affect the people they represent.
We will continue advocating for practical, evidence-based reforms that deliver well-located, affordable, liveable homes while supporting the long-term sustainability of Tasmanian communities.