Forest Products Industry
Analyst Report: Dow Inc
Analyst Report: PG&E Corp
Gold and silver prices today, Wednesday, May 13: Silver prices surge again, gold sits tight
Best money market account rates today, May 13, 2026: Secure up to 4.01% APY
Mortgage and refinance interest rates today, May 13, 2026: Conventional rates up across the board
HELOC and home equity loan rates today, May 13, 2026: Rates low with prices increasing in April
Best high-yield savings interest rates today, May 13, 2026: Earn up to 4.1% APY
PEFC 2025 annual review with partnerships and progress
PEFC’s 2025 Annual Review has been released, and PEFC says that the past year was one of progress, partnerships and impact, as it continued to advance sustainable forest management worldwide. Source: Timberbiz Across the PEFC Alliance, it strengthened its global network with new endorsed systems in Türkiye and Lithuania and a new standard in Croatia and welcomed CMPC Celulosa S.A. as an international stakeholder member. Last year also saw important steps forward in its strategic priorities. PEFC launched its Indigenous Peoples Engagement Program, opened a regional office in Gabon, and continued shaping the future of the PEFC system through new approaches focused on performance and impact. PEFC also advanced innovation across key areas, from expanding Trees outside Forests certification and progressing the PEFC Project Sourcing standard, to strengthening the role of certification in credible forest carbon projects and supply chain transparency. Throughout the year, PEFC engaged in global dialogues on forests, biodiversity and climate, and continued sharing the stories of forest owners and communities, highlighting the real world impact of certification on the ground. You can download a copy of the Annual Review here.
The post PEFC 2025 annual review with partnerships and progress appeared first on Timberbiz.
Hyperligno a friendly alternative for wood preservation
The research originated in a project aimed at developing biofuels for ships but has since evolved into an environmentally friendly method for wood preservation. The path to new inventions is rarely straight or predictable, and this has certainly been the case for University of Copenhagen researchers Emil Thybring and Sune Tjalfe Thomsen. For several years, they have been working on a new, sustainable way to impregnate wood without harming the environment. Source: Timberbiz Today, the wood industry treats timber with heavy metals such as copper to extend its lifespan when used as a construction material. In the pressure treatment process, water with dissolved preservation chemicals is forced into the wood. The problem is that a large proportion of these substances is later leached out when the wood is exposed to rain, ultimately ending up in soil, marine environments and drinking water. “The toxic substances we introduce into the wood using water to make it last longer also leave the wood with water and end up in nature. It is a serious problem, and one we aim to solve with our technology,” said Emil Thybring, associate professor at the Department of Geosciences and Natural Resource Management. The researchers’ method is based on lignin, a natural binding agent in wood that stiffens the material and holds its cells together. Lignin is available in vast quantities as a residual product from the paper industry, where it is separated out and typically burned because it gives paper a brownish colour rather than the desired white. According to the researchers, just 15% of the EU’s lignin production could replace the environmentally harmful substances used across the entire EU production of pressure-treated timber. “It makes perfect sense to take a global industrial by-product and use it as an environmentally friendly alternative to the most widely used and environmentally damaging wood protection methods we rely on today,” said Sune Tjalfe Thomsen, associate professor at the Department of Geosciences and Natural Resource Management. By dissolving lignin in alcohol, the researchers have succeeded in creating an extremely concentrated solution with such a high lignin content that it can impregnate wood very efficiently – a process they have dubbed “hyperlignification”. “Others have previously considered using lignin as a wood preservative and experimented with relatively dilute solutions. We work with much higher concentrations, which truly saturate the wood and protect it against fungal decay and rot,” said Emil Thybring. The method works by dissolving lignin – a natural binding agent in wood – in an alcohol-based liquid, allowing it to penetrate the wood’s microscopic structure. The researchers use a process similar to conventional pressure impregnation, in which the liquid is forced into the wood under pressure. The key difference is the much higher lignin concentration, making it possible to fully ‘saturate’ the wood with the natural material. Once inside the wood, the lignin alters the material’s internal composition, making it far less attractive to wood-degrading fungi. At the same time, the wood’s ability to absorb moisture is reduced, which is one of the primary drivers of bio-logical degradation. The result is a wood material that is far more resistant to the mechanisms that normally lead to rot and decay. “In laboratory trials, where we expose the wood to some of the most aggressive wood-degrading fungi under optimal growth conditions, we see a striking difference between untreated and hyperlignified wood. “For example, tests on pine and beech show that when fungi have decomposed around 50% of untreated wood, they have only broken down about 1% of the hyperlignified wood,” said Sune Tjalfe Thomsen. These results indicate that the treatment has the potential to significantly reduce the rate of degradation. The findings were obtained under controlled laboratory conditions. An important next step is therefore to assess the effect at larger scales and under realistic outdoor conditions. Ensuring that wood withstands outdoor exposure is not a new interest for Emil Thybring and Sune Tjalfe Thomsen, who could best be described as researchers with a long-standing interest in wood durability. For years, Emil Thybring conducted his own experiments in his backyard, testing various natural wood protection methods and monitoring them over time. Today, that interest has evolved into a full-scale research project, which has recently received more than DKK 15 million in funding from Innovation Fund Denmark’s Grand Solutions program. Last year, the researchers also won a major European innovation competition, the “Evergreen Prize for Innovation”, receiving EUR 300,000 to further develop their non-toxic wood protection technology. The Grand Solutions project has been named “HYPERLIGNO” and was officially launched in April. In collaboration with Frøslev – Denmark’s largest timber supplier to the construction industry as well as architects and other partners, the project aims to bring the research from the laboratory into production, trans-forming new knowledge into new wood products. “We need to dive deep into the lignin molecules because we can see that certain types of lignin penetrate deeper into the wood and provide better protection. This allows us to identify the optimal lignin source from the paper industry,” explains Sune Tjalfe Thomsen. The Hyperligno team aims to develop a product that could replace today’s toxic wood impregnation methods in Denmark and across Europe. At the same time, the EU is moving towards stricter regulation of biocides in wood, with a phase-out expected by 2030.
The post Hyperligno a friendly alternative for wood preservation appeared first on Timberbiz.
South East Asia workshop to improve data on local forestry
South East Asia and the Pacific have some the last remaining untouched forests in the world. These primary forests are irreplaceable ecosystems, supporting rich biodiversity, storing vast carbon and sustaining the livelihoods of Indigenous Peoples. Source: Timberbiz However, across the region, these forests continue to decline despite their importance, even as overall forest area in Asia shows signs of increase. The Food and Agriculture Organization of the United Nations (FAO) is strengthening countries’ capacity to monitor and report on primary forests through a regional workshop taking place this week in Thailand, bringing together experts from across Southeast Asia and the Pacific to improve the quality, consistency, and comparability of data on primary forest extent and trends including the use of national forest inventories, geospatial data, and satellite imagery for their mapping. “To safeguard what remains of these vital ecosystems, countries need reliable and consistent data to guide action and track change over time,” said Alue Dohong, FAO Regional Representative for Asia and the Pacific. “This workshop is an important step toward strengthening national capacities and ensuring better evidence for decision-making on primary forests.” FAO is working with countries to improve the consistency and quality of data reported to FAO’s Global Forest Resources Assessment (FRA), while also enhancing their ability to monitor primary forests over time. Organized under FAO’s work on primary forests and the Global Environment Facility-funded Strengthening Conservation of Tropical Primary Forests through Partnership Enhancement and Coordination of Support (SCOPE) project, the workshop brings together technical experts from Bhutan, Indonesia, Lao People’s Democratic Republic, Malaysia, Papua New Guinea, Thailand and Viet Nam. Participants are reviewing and testing draft guidance and geospatial tools designed to support more accurate mapping and reporting of primary forests. These include hands-on training in tools such as Collect Earth Online and the Primary Forest Finder, which help countries assess forest extent and changes over time. Building a stronger evidence base Through this joint initiative with member countries and partners, FAO is developing biome-specific guidance, improving the shared understanding of what constitutes a primary forest, and strengthening national data systems. The workshop builds on earlier efforts, including a virtual session held in 2021, and contributes to the Southeast Asia and the Pacific Forests Integrated Program. It also supports global efforts to halt biodiversity loss and address climate change by improving the evidence base for forest conservation. Ultimately, more accurate and consistent data on primary forests will enable better-informed decisions at national, regional and global levels, helping to protect some of the planet’s most valuable ecosystems.
The post South East Asia workshop to improve data on local forestry appeared first on Timberbiz.
Two special trees pining for attention
Say ‘pines’ in Canberra, or in most of southern Australia, and people will probably think of plantations of Radiata (also known as Monterey) Pine which cover huge swathes of areas around Tumut and Bathurst, the south-east of South Australia and across Victoria and Tasmania. (Though ironically this pine is highly endangered in its very small natural range in coastal California and Mexico.) Source: Region However, there are some 50 species of native conifers (which means ‘bearing cones’ and not flowers) in Australia, whose ancestors grew across the world from about 300 million years ago, among forests of giant ferns and other plant groups which have long gone from the earth. This was well before the rise of the dinosaurs. In time they dominated the world for 100 million years and I’ll pause while you contemplate that, and then the dinosaurs did munch on them. Eventually though the flowering plants appeared and became dominant, but in many parts of the world, especially high on mountains and near the poles where it’s too cold for birds and insects to be reliable pollinators, the conifers still rule. They are not so dominant in Australia, though inland there are still extensive woodlands of cypress pines, which were heavily logged for their easily worked timber which is resistant to rot and termites. Many of the old shearing sheds on the plains in western NSW are made of cypress. However, today I want to introduce the only two native pines that grow naturally in the ACT, though neither is widespread. In drier rocky woodland areas, especially in Molonglo Gorge and along parts of the Murrumbidgee Corridor, dark green, Black Cypress Pines (Callitris endlicheri) appear in stands of often slender tapering trees. Like most cypress pines they bear both male and female cones on the same plant. The male cones are small, on the ends of the branches, and produce vast quantities of minute pollen grains which drift on the wind. Most of these are lost, but enough land by chance on an open female cone to ensure the success of the species. The rounded female cones are much larger and woody and stay on the tree for years holding the seeds. After a fire, which usually kills the tree, they will open to drop the seeds. However, in the absence of fire the cones will eventually open anyway. The cones are very hard, but any of the local cockatoos can crack them to extract the seeds. The other local native pine is very different in appearance and habitat. Mountain Plum Pine (Podocarpus lawrencei) belongs to a different family, the podocarps, whose ancestors arose in Gondwana and which are still only found in the southern lands. Most podocarps are rainforest trees, but Mountain Plum Pine grows as a sprawling ground cover across rocks high in mountains, even above the snow line. These shrubs provide crucial shelter for small animals by providing a still warm air layer between the rocks and the dense layer of small leaves even in winter when snow lies on top of the foliage. Unlike the cypress pines, Mountain Plum Pines have separate male and female plants. The male cones are small and purple, while the female cones are quite unlike those of the cypress pine – indeed they look like a glossy red berry, but this is misleading as they don’t contain a seed. The seed is carried in the open at the end of the stem, and it is the stem which is red and swollen to resemble a fruit and even contains sugars, to attract animals which then distribute the seeds. An excellent place to look for them is along the high parts of the Mount Franklin Road in Namadgi National Park (and early May is not too late to go up there to have a look). Just walk along the road beyond the locked gate on the slopes of Mount Ginini and watch the roadside on your right; there are very healthy Mountain Plum Pines growing on the roadside. If you rub the leaves between your fingers, you’ll immediately recognise this low shrub as a pine, even if your eyes say otherwise! I love our wildflowers as much as anyone, but there are other even older local plants which lack flowers but still deserve our attention and admiration.
The post Two special trees pining for attention appeared first on Timberbiz.
Inala apartments are the House of the Year
The Inala Infill Apartments, designed by Baber Studio, have been awarded House of the Year at the 2026 Greater Brisbane Regional Architecture Awards – the highest honour across all residential project categories. Source: Timberbiz The award recognises the project’s leadership in cross‑laminated timber (CLT) construction, low‑carbon delivery, and high‑performance social housing, outperforming expensive new house projects and large multi‑residential “green tower” developments recently completed in Brisbane. Led by Kim Baber, Principal Architect of Baber Studio and Project Leader / Chief Investigator within the ARC Advance Timber Hub, the project demonstrates how mass timber systems and modern methods of construction (MMC) can deliver cost‑effective, scalable and climate‑positive housing outcomes -without compromising architectural quality or resident wellbeing. Key project members include Free-Range Landscape Architects, Hyne Timber and XLam, and Kane Constructions. At the core of the project is the use of structural mass timber, with CLT forming the primary floor and roof system. Concrete and steel were deliberately limited to areas where they were functionally unavoidable, such as the ground slab, lift core and select structural elements. This material substitution reduced total carbon emissions for the project by 173.4 tonnes of CO₂, equivalent to taking 37 cars off the road for one year. The entire building required only two hectares of forest, which could be regrown in Australian plantation forests in approximately 18 minutes. The building incorporates approximately 247 m³ of engineered timber, including CLT, glue‑laminated timber (GLT) and laminated veneer lumber (LVL). Importantly, the CLT manufacturing process enables the transformation of low‑structural and/or appearance‑grade timber into high‑performance structural panels, maximising resource efficiency while supporting domestic timber supply chains. Inala Infill Apartments provides a clear example of how MMC and prefabricated timber systems can de‑risk delivery and improve productivity in mid‑rise residential projects. XLam CLT panels, manufactured to precise dimensions using computer numerical control (CNC), minimised waste and enabled rapid on‑site assembly. A key outcome was construction speed: installation of the CLT floor panels took just two days, compared with the six days originally programmed, allowing early removal of cranes and reducing overall construction costs and site disruption. These efficiencies highlight the commercial advantages of mass timber for projects operating under tight budgets and delivery timelines. Beyond embodied carbon and construction performance, the project demonstrates the health and wellbeing benefits of exposed mass timber. CLT ceilings are left visible throughout the apartments, reducing reliance on plasterboard and paint finishes and significantly lowering volatile organic compound (VOC) emissions at occupation. This contributes to improved indoor air quality and long‑term occupant comfort. The architectural design integrates biophilic principles through strong visual and physical connections between timber structure and landscape. Courtyards, walkways and close connections to gardens are coordinated with exposed timber surfaces, reinforcing nature‑based relationships and supporting resident wellbeing. The apartments are configured to maximise passive environmental performance, reducing operational energy demand. Each dwelling includes dual balconies, enabling effective cross‑ventilation and passive cooling. The layout supports “diurnal migration”, al-lowing residents to occupy cooler areas of the apartment throughout the day and reducing reliance on mechanical systems. The building is 100% electric, exceeds minimum insulation requirements, and was assessed using NatHERS, confirming performance beyond minimum energy‑efficiency standards. This demonstrates that mass timber and passive design strategies can be effectively combined in real‑world housing delivery. Recognised as an exemplar by the Queensland Department of Housing and Public Works and the NSW Government Architect, the Inala Infill Apartments project has been included in government design guidance for the wider design community and general public. Showcased in the MMC Case Study – Inala Infill Apartments Queensland. It features in the Queensland Social Housing Design Guidelines. The project has also been incorporated into continuing professional education pro-grams, including the NSW Government Architect’s Talking Homes presentations. Inala Infill Apartments provides a replicable model for low‑carbon, mid‑rise housing. The project demonstrates that CLT and mass timber are no longer niche solutions, but commercially viable systems capable of delivering speed, certainty, sustainability and social value at scale. The House of the Year award reinforces a growing industry message: when combined with thoughtful design and modern methods of construction, mass timber can redefine how housing is delivered in Australia – for governments, developers and communities alike.
The post Inala apartments are the House of the Year appeared first on Timberbiz.
NZ Institute of Forestry welcomes the climate change report
The New Zealand Institute of Forestry (NZIF) has welcomed the release of the Climate Change Commission’s 2026 National Climate Change Risk Assessment, particularly the recognition of forestry as one of New Zealand’s most significant climate related risks. Source: Timberbiz NZIF President James Treadwell said the report correctly recognises forests are already facing increasing pressure from climate change, including more severe storms, wildfire risk, drought, changing rainfall patterns, and increasing pest and disease threats. “Forests are long term assets. Decisions made today will influence how resilient our landscapes and communities are for decades to come.” said Mr Treadwell. “For commercial forestry this includes species choice, establishment, management and harvest planning but the long-term decision framework applies even more to the management of the conservation estate under changing conditions and the preservation of our native taonga.” “The report rightly highlights the need for stronger adaptation planning across the forestry sector.” NZIF represents professional foresters working across all forest types in New Zealand, including indigenous forests, production forests, farm forestry, permanent forests, protection forests and urban forestry. Mr Treadwell said forests play a critical role in New Zealand’s future, not only through carbon storage, but also through erosion control, biodiversity protection, water management, renewable materials, regional employment and landscape resilience. “It is important the national discussion does not frame forestry solely as a risk. Well planned and professionally managed forests are also a major part of New Zealand’s response to climate change.” NZIF supports the Commission’s call for improved long-term planning, better research and stronger coordination between central government, local government, iwi, re-searchers and the forestry sector. The Institute believes the next National Adaptation Plan should include development of a national forestry adaptation programme focused on: improving forest resilience to climate change, strengthening wildfire and biosecurity preparedness, supporting research into species suitability and genetics, improving land use planning for erosion prone land, integrating climate resilience into ETS and carbon forestry settings, recognising the role of professional forestry expertise in adaptation planning. Mr Treadwell said adaptation policy must reflect the diversity of New Zealand forestry. “A one size fits all approach will not work. Different forest types, regions and ownership structures face different risks and opportunities.” “The forestry sector is ready to work constructively with government and communities to help build more resilient landscapes and a more climate prepared New Zealand.”
The post NZ Institute of Forestry welcomes the climate change report appeared first on Timberbiz.
Minister visits Coffs Harbour to push the Great Koala Park
New South Wales Minister for the Environment, Penny Sharpe, was in Coffs Harbour to advance plans for the Great Koala National Park. Source: Timberbiz The NSW State Government says that the creation of the park is a once-in-a-generation opportunity to not only save vital habitat from extinction but build a world-class tourist destination that protects the environment while boosting tourism and the local economy. The final creation of the park is dependent on the successful registration of a carbon project under the proposed Improved Native Forest Management method. This is progressing following public consultation in January. The method is expected to be considered by the Commonwealth Government’s Independent Emissions Reduction Assurance Committee. The future park is rich with opportunities for recreation, and the government want these to be shaped by community voices at every step. Dozens of consultation sessions, from local market stalls to meetings with recreational groups, have drawn strong participation. More than 4,000 survey responses have explained how people want to protect the forests and develop recreation activities that will make the Great Koala National Park a must-see destination. “The Great Koala National Park is a landmark investment in the Mid North Coast, securing our unique environment while driving new local jobs and economic opportunities for our communities,” Minister for the North Coast, Janelle Saffin said. “By putting local voices at the heart of this process, we are ensuring the park’s creation delivers for everyone who lives and works here.” The Minister will meet with the Aboriginal Advisory Panel in Coffs Harbour. For the first time, the park will appoint NSW National Parks and Wildlife Service (NPWS) Aboriginal cultural heritage rangers, embedding cultural knowledge and care at the heart of park management. Following extensive collaboration with Elders and Traditional Owners on the Aboriginal Advisory Panel, positions will be created for Aboriginal Rangers. The area is a significant cultural landscape for the Gumbaynggirr and Dunghutti peoples, including places of creation, ceremony and spirituality, traditional camps, resource gathering areas and pathways. Extensive preparation is underway to ensure the park is ready from day one, including: boosting firefighting capacity with the NSW Rural Fire Service and Forestry Corporation NSW through more fire fighters, new equipment like fire trucks and early detection technologies refining park boundaries for the best conservation possibilities and working with local tourism, council and other partners to unlock new visitor and rec-reation opportunities preparing legislation to reserve the Great Koala National Park in late 2026. “The Great Koala National Park is a once-in-a-generation opportunity to protect one of Australia’s most important koala populations while recognising the deep cultural connection Traditional Owners have to this landscape,” Minister for the Environment, Penny Sharpe, said. “The Minns Labor Government has been working closely with the community to ensure planning delivers strong environmental protection, while driving nature based and recreational tourism on the Mid North Coast.”
The post Minister visits Coffs Harbour to push the Great Koala Park appeared first on Timberbiz.
NFF raises concerns about budget cuts to Dept of Agriculture, Fisheries and Forestry
The National Farmers’ Federation (NFF) has welcomed key measures in the Federal Budget that will ease pressure on farmers and strengthen the nation’s food and fibre supply chains, with hard fought wins for farmers in the tax reforms, including primary production income being exempt from a minimum tax on discretionary trusts. Source: Timberbiz However, the National Farmers’ Federation (NFF) raised concerns about cuts to regional infrastructure, connectivity and the Department of Agriculture, Fisheries and Forestry. NFF President Hamish McIntyre said the Budget landed at a difficult time for Australian agriculture, with farmers and fishers continuing to shoulder the impacts of global instability and supply chain disruption from conflict in the Middle East. “Farmers have been doing it tough, and so has the broader economy,” Mr McIntyre said. “The conflict in the Middle East has driven fuel and fertiliser costs through the roof and placed pressure on the production of the food and fibre Australians rely on every day. “When pressure builds on farm businesses, it doesn’t stop at the farm gate. It eventually flows through to all Australians at the checkout. “In that context, there are several measures in this Budget that are welcome and reflect the Government listening to the concerns the NFF has consistently raised on behalf of farmers.” The NFF welcomed changes ensuring primary production income will be exempt from the new 30% trust tax and confirmation there will be no changes to small business capital gains tax concessions. “There are around 40,000 trusts used in agriculture so these are significant wins for family farm businesses and reflect the case we have consistently put to the Treasurer about how these changes would impacted succession. “Family farms are generational businesses built over decades and often represent a family’s life savings and retirement plan. We are pleased the Government has listened.” The NFF welcomed the Government’s $10 billion fuel security package, designed to improve domestic fuel and fertiliser resilience with an emphasis on reducing the risk of supply shocks for essential users, including regional and agricultural industries. The permanent extension of the instant asset write-off was also welcomed, providing certainty for farm businesses looking to invest in equipment and technology. “We advocated hard for this to become a permanent feature of our tax system. It’s a simple and effective measure that helps farmers reduce costs and increase their productivity.” The NFF also acknowledged the new loss carry-back provisions, an $8.7m investment for the APVMA, along with the previously announced decisions to de-fer export cost recovery increases, and a $387 million boost to CSIRO and the Australian Centre for Disease Preparedness. “These are practical investments we’ve advocated for because they strengthen resilience and innovation and help keep downward pressure on the cost of producing Australian food and fibre.” The NFF also welcomed additional resourcing for implementing EPBC reforms with a focus on establishing new entities (National Environmental Protection Agency and Environmental Information Australia) and improving assessment timeframes. However, the NFF still requires clarity on how this funding will support the difficult transition agriculture is experiencing under changes to continuous use provisions for agriculture. “Farmers need clarity and consistency, particularly around changes to continuing use provisions,” Mr McIntyre said. “We’ll continue working closely with the Government to ensure these reforms deliver environmental outcomes without creating uncertainty or unnecessary compliance burdens for producers.” However, the NFF has raised concerns about sweeping cuts across key areas impacting agriculture. This includes the Department of Agriculture, pests and weeds, Inland Rail Project and regional connectivity including the Regional Tech Hub. “There could not be a worse time to pull back investment in supply chains and regional connectivity,” Mr McIntyre said. “The Inland Rail was designed to strengthen supply chains, ease pressure on our highways and reduce the cost of moving produce from farm gate to consumers. “The Regional Tech Hub helped more than 75 regional people each day in 2025 alone. “Without continued support for this service, regional Australians may lose a trusted service that has helped thousands navigate major technology changes and stay connected. “This Budget contains some hard-won wins for agriculture, and we welcome them. We’ve had the opportunity to be at the centre of some of the most important discussions of this generation, around fuel and fertiliser supply and capability. “But if Australia is serious about building a stronger, more productive economy, this must be the starting point, not the finish line.”
The post NFF raises concerns about budget cuts to Dept of Agriculture, Fisheries and Forestry appeared first on Timberbiz.
HIA says the budget will worsen the housing shortage
The Federal Budget will make Australia’s housing shortage worse by reducing the supply of new homes at a time when the country is already struggling to house a growing population, according to the Housing Industry Association. Source: Timberbiz The HIA says that even the Government’s own Budget papers admit that changes to negative gearing and capital gains tax will reduce the supply of new housing by around 35,000 homes over the next decade. HIA Chief Economist Tim Reardon said the Budget was attempting to solve a housing shortage by discouraging the investment needed to build more homes. “Australia’s housing challenge is simple. Consider it as if we are trying to fit 11 million households into around 10 million homes,” said Mr Reardon. “The solution to a housing shortage is to build more homes. This Budget does the opposite.” From 1 July 2027, negative gearing for residential property will be limited to new builds, while the 50% capital gains tax discount will be replaced with cost base indexation and a 30% minimum tax rate on capital gains. Treasury estimates the reforms will support around 75,000 additional owner occupiers over the next decade, but at the cost of reducing the supply of new homes. “The Government is stopping 35,000 private homes from being built in order to raise enough revenue to build around 4,000 public homes,” said Mr Reardon. “That is a terrible trade-off in the middle of a housing crisis.” Mr Reardon said the reforms misunderstood how housing investment supports new home building. “Investors are critical to funding new housing supply and commenced around half of all new home builds in the past,” he said. “If investors leave the housing market, fewer projects proceed and fewer homes get built. “The Government assumes investors will simply redirect their money into new homes, but housing investment doesn’t work like that. “If the overall attractiveness of residential investment falls, fewer investors participate overall.” HIA welcomed the Budget’s additional $2 billion investment in housing-enabling infra-structure, including water, sewerage and roads, intended to unlock up to 65,000 homes. “These infrastructure investments are important because the industry desperately needs more shovel-ready land,” said Mr Reardon. “But infrastructure and planning reform take years to deliver new homes. The adverse tax changes hit the market confidence immediately.” Mr Reardon said the tax changes risk worsening rental affordability over time by reducing the supply of future rental housing. “At a time when vacancy rates remain critically low, reducing the number of investor-funded homes being built will inevitably place upward pressure on rents,” he said. “The Government deserves credit for recognising that infrastructure, planning and approvals are barriers to supply. “But you cannot tax your way out of a housing shortage. “The only lasting solution to housing affordability is more homes.”
The post HIA says the budget will worsen the housing shortage appeared first on Timberbiz.
