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Market confidence appears to be returning to the home building market, with an increase in residential building approvals in July, according to HIA Economist Maurice Tapang. Source: Timberbiz The Australian Bureau of Statistics this week released its monthly building approvals data for July 2024 for detached houses and multi-units covering all states and territories. Residential building approvals rose by 10.4 per cent in July, with a 0.3 per cent rise in approvals for detached houses and a 33.7 per cent rise in multi-unit approvals. Nationally, there were 9,350 detached homes approved for construction in July 2024 and 5,440 multi-unit approvals. “The small increase in detached home approvals is being driven by what appears to be sustained improvements in Western Australia, Queensland and South Australia, while New South Wales and Victoria remain more constrained,” Mr Tapang said. “The strong improvement in the number of multi-unit approvals comes off the weakest month for multi-units in 12 years.” House approvals over the three months to July 2024 were 2.3 per cent higher compared with the previous three-month period, to be 12.6 per cent higher compared to the same time in the previous year. Across the capital cities, house approvals in the three months to July rose by 19.8 per cent in Perth compared with the previous three-month period, with Adelaide recording an increase of 13.7 per cent and Brisbane an increase of 10.6 per cent. The two largest capital cities recorded more modest increases in house approvals, with Sydney up by 2.8 per cent compared to the previous three-month period and Melbourne up by 2.0 per cent. “The uplift in home building approvals in those markets outside of Sydney and Melbourne has been driven by strong economic conditions and the relatively lower cost of delivering a new home,” Mr Tapang said. “It has been almost ten months since the last increase in the cash rate. Stable interest rate settings have provided the certainty needed to see a rise in home building confidence. “Materials price growth and build times for homes have stabilised and returned to normal pre-pandemic levels, which provides certainty with the cost to build,” he said. “Unemployment remains very low, and there are now more people employed in the economy than there were prior to the pandemic. “There is strong demand for homes and a low level of supply, as evidenced by low rental vacancy rates particularly outside of Australia’s southeastern capitals. “Policymakers that ease the tax and regulatory burdens on new homes will also help in lowering the cost of delivering a completed home to market,” Mr Tapang said. Master Builders Australia CEO Denita Wawn said that July marked the first month of the new National Housing Accord, which seeks to deliver 1.2 million new homes by June 2029. “(The) figures show that we have started the Accord on the front foot,” she said. “However, it will still be a huge challenge for us to deliver the Accord’s target. “Over the past five years, just 940,000 new homes were approved across Australia. “More ominous is the fact that 166,140 new home building approvals were received over the year to July,” Ms Wawn said. “If we remain at this pace, we’re looking at creating about 831,000 new homes over the next five years. “We cannot take the foot off the peddle when it comes to boosting housing supply and improving the investment environment for new projects. “Workforce shortages, woeful industry productivity, a lack of critical infrastructure, high taxes and charges, slow approval process, and costly union Enterprise Bargaining Agreements all inhibit the building and construction industry’s capacity to get on with the job,” Ms Wawn said. House approvals over the three months to July 2024 increased by 57.6 per cent in Western Australia compared to the same time in the previous year. This was followed by Queensland (+22.1 per cent), Victoria (+8.8 per cent) and South Australia (+4.4 per cent). The other jurisdictions recorded a decline over the same period, led by Tasmania (-19.3 per cent), the Australian Capital Territory (-12.4 per cent), the Northern Territory (-8.2 per cent) and New South Wales (-4.7 per cent).  

The Victorian State Government is backing Victoria’s prefabricated construction industry, with a new directory making it easier and more accessible for local manufacturers to work on projects across the state. Source: Timberbiz Minister for Jobs and Industry Natalie Hutchins has launched the latest edition of the Victorian Prefabricated Construction Directory, which features 24 businesses delivering residential, commercial, and infrastructure projects across Victoria. First released in 2019, the directory showcases the range of products and capabilities of each business, making it easy to find manufacturers that can meet specific project requirements. The directory also highlights innovative examples of the Labor Government’s use of prefabricated construction in building projects, including the two-storey mental health facility extension at the Sunshine Hospital and an affordable regional housing project in Horsham. Prefabricated construction is a modern method of construction (MMC) where buildings and components are manufactured off-site before being transported to a permanent location. This approach can result in lower costs and faster delivery times compared to conventional construction methods. By manufacturing buildings in a controlled factory environment, prefabricated construction minimises delays caused by disruptive weather, reduces waste, and creates safer, more accessible jobs. As the fastest-growing state in Australia, Victoria’s increased adoption of prefabricated construction will play an important role in increasing the supply of residential housing stock by enhancing the productivity and competitiveness of our construction sector. Victoria’s $33.5 billion manufacturing sector is a significant contributor to the economy, generating $23 billion in exports and supporting over 260,000 jobs. To download the Victorian Prefabricated Construction Supply Chain Directory, visit djsir.vic.gov.au/made-invictoria.

I have spoken many times in this place, as senators would be aware, about the significant contribution that is made by our sustainable forestry industry, given the important role that it has played in my home state of Victoria and obviously across the country in other states, and the importance of being able to achieve emissions reduction targets. I think that’s something that always gets forgotten in the debate or discourse around these issues when they do come up from time to time in this place: that forestry, forest management, the timber industry, can actually play a positive role in helping governments across the world to reduce our emissions. We know that trees absorb carbon. Using timber products stores that carbon. Then other trees are planted to replace the timber that was used for those products. So, by definition, as to what is being discussed here, they are very much sustainable, from when the trees are planted all the way to us using those products for whatever they might be used for. It is great to see the positive role that forestry plays in climate action being recognised and encouraged on the world stage, as new research does urge nations around the world—and this has been discussed many times at COP, as other world leaders around the world recognise the importance of the industry and that sustainable forestry plays a very positive role and thereby also addresses an emerging global timber and wood supply gap as the world pivots to climate-friendly fibre supplies. It is no wonder that demand for timber products is increasing, and, if we do not support a sustainable industry in forestry, this demand will be met either by unsustainably sourced timber or by other products that do not have the same climate benefits and may even contribute to higher emissions. That is something, sadly, that does not get acknowledged by some in this place. This is one of the great frustrations that I have with some senators who fail to understand that and the positive role that forestry plays. It is also the case that we have seen, time and time again, many activists, particularly those in my home state of Victoria, doing everything they can to disrupt the industry—to ruin the lives of many people in regional communities where the sole employment, the sole source of income, the sole lifeblood of many regional towns, is timber and the forestry industry. We have one of the most sustainably-managed forest industries in the world. That’s something we should be very proud of. We have strict regulations. Yes, there are times when we do need to make improvements; there are times when we do need to make improvements such as those in the bill that is before us today. But we should not also rubbish an industry that supports tens of thousands of jobs, does have a positive role to play in the environment and helps us get to our targets for reducing emissions by 2050. The amendments that the bill proposes aim to better protect the Australian market from illegally harvested timber and timber products and support legal and sustainable trade by improving regulatory tools and action for non-compliance. As we know, illegal logging has devastating consequences for our climate, the environment, people and the economy, and it is a driving force of various environmental issues around the world. As a member of the Rural and Regional Affairs and Transport Committee, as well as being the co-chair of the Parliamentary Friends of Forestry, Timber and Paper Products with my good friend Senator Duniam, I have seen firsthand the major role that Australia’s forest products play in promoting sustainable forest management. The Albanese Labor government understand the importance of combating illegal logging, and the department of agriculture is heavily involved in international efforts to promote sustainable forest management. It’s an industry that we must preserve and protect, and this bill will keep Australia’s logging laws at the forefront of international efforts to prevent illegal timber harvesting and associated trade. The bill will also enforce a new requirement on importers, and, as we heard earlier, it’s important that the importers play a positive and significant role in how we manage and try to understand where timber is sourced from around the world. Sadly, I know Senator McKim mentioned the Greens saying the bill doesn’t go far enough, but the only things that will satisfy the Greens are the shutdown of forestry in Australia and the complete shutdown of these jobs and these communities right across regional Australia. The irony is that they want to import timber from countries that don’t have the same standards that Australia has. What we have heard, time and time again, from various inquiries and reports from right around the world and here in Australia is that there are some countries that we do import timber whose standards are, frankly, not up to scratch. Yes, they might have the official stamp that we all believe means that it is certified to acceptable standards—standards that we would hope, Senator McKim, would actually be the standards that you and I, and others in this place, would accept. But, unfortunately, we know that there are some countries where timber is sourced in which that it is not the case. They are not up to the standards that we, as Australians, should be accepting and should be importing into this country, hence why we are introducing this bill. There is also a requirement on the processors to give notice prior to importing all processing timber products, giving the government more information about what is entering the market. It will also allow for more flexible enforcement options, including expanded monitoring and investigation powers, strict liability offences, injunctions and enforceable undertakings under the act. It is also important to note that, before the current regulation, which was introduced back in 2012, around 10 per cent of timber imported to Australia each year was estimated to be illegally logged. What a disgrace! […]

Victoria’s timber towns are set to be stripped of more jobs, as Premier Jacinta Allan prepares to cut 208 staff from her government’s Bushfire and Forest Services Group across 99 regional sites, according to The Weekly Times. Source: The Weekly Times Orbost, Omeo, Heyfield, Bairnsdale, Yarram, Corryong and other towns have already been hit by Allan Government’s termination of native timber harvesting on January 1 this year, which forced many workers to find jobs elsewhere. But documents obtained by The Weekly Times show the government is now preparing to cut back regional forest and firefighting jobs, peppering the losses across the state. The staff consultation documents shows 118 of the 208 job cuts will come from the BFS Group’s forest fire operations staff, who are scattered across regional Victoria, especially in the state’s east. All up the Bushfire and Forest Services Group’s staff numbers are to be cut from 1925 to 1717. Orbost forestry consultant Garry Squires told The Weekly Times the town had already lost timber harvesting and mill jobs, as well as seven VicForests staff, who had taken redundancies. “Any further cuts make it more difficult to deal with the inevitable fires,” Mr Squires said. “Unfortunately it’s the frontline people who’ll go, while middle managers hold onto their jobs.” Gippsland East Nationals MP Tim Bull told The Weekly Times “on the cusp of summer, with fuel loads at record levels, the government is cutting fire operations staff”. “We are going to burn again, so we need better resource not less. This is terrible news.” The Weekly Times says the cuts appear to have been triggered by budgetary pressure resulting from DEECA absorbing the VicForests operations and forestry staff, plus taking on some of the former native timber harvest and haulage contractors and their heavy machinery. The Community and Public Sector Union is in negotiations with the Department of Energy, Environment and Climate Action, with a spokesman stating it was doing all it could to protect regional jobs. DEECA’s consultation document states “since the transfer of fire functions and people from Parks Victoria, BFS is now located at 99 regional work centres across regional Victoria. “The government’s commitment to end native timber harvesting has changed our work programs.” Environment Minister Steve Dimopoulos told The Weekly Times “DEECA’s Bushfire and Forest Services Group was consulting with staff about a proposed new model that will deliver value for Victorians and ensure we have the right people working on the right things – including making sure our communities can continue to enjoy the great outdoors while protecting what we all love about the bush. “We will maintain a strong regional presence across Victoria and focus our skilled staff on a forest and fire management program that delivers for local communities. The proposal is the subject of consultation with staff as DEECA finalises the model.”