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The number of housing loans issued for the purchase and construction of a new home in the three months to August was 9.1% higher than at the same time in the previous year. Source: Timberbiz The ABS released the Lending Indicators data for August 2024 which provides the latest statistics on housing finance commitments. “This increase in lending comes off a very low base, with lending for new home purchase and construction remaining about the lowest levels since 2002,” HIA Chief Economist, Tim Reardon said. “Market confidence in new home building has been improving with a pause in interest rate changes for eleven months, low levels of unemployment and an acute shortage of housing,” he said “First home buyers are increasingly active as buying a home provides protection from the acute shortage of rental homes. The Government should be looking at removing the restrictions that prevent many first-time home buyers from getting a loan.” In its recent submission to the Senate inquiry into the financial regulatory framework and home ownership, HIA identified that a decade of additional costs has restricted competition among banks and made it increasingly expensive for them to lend to first home buyers. “A decade of increased prudential restrictions has reduced competition among banks and added additional barriers to first home buyers gaining access to a loan,” Mr Reardon said. “HIA has recommended that the Government should establish an RBA-style Board to oversee APRA to balance the goals of financial system stability and homeownership.” This should include an RBA-style target for mortgage arrears. “Just as zero inflation is not the RBA’s goal, zero mortgage arrears is an unattainable and undesirable goal for APRA,” Mr Reardon said. “Mortgage arrears in Australia have remained exceptionally close to zero, even though the GFC and the pandemic. Yet, APRA continues to impose additional constraints on lending, competition among banks and thereby restricting housing supply. “The problem is that ongoing regulations have forced banks to eliminate much of the flexibility and competition in the mortgage market that made home ownership accessible for households with variable access to capital, such as first home buyers. “Ensuring that home ownership remains an attainable goal for Australian households is an equally important objective that has not received adequate recognition among financial regulators. “Banks should be making the decision on who is able to service a mortgage, not the Australian Government. Banks are well placed to make this assessment and are protected from delinquency through mortgage insurance,” Mr Reardon said. The number of owner-occupier loans issued for the purchase or construction of a new home in the three months to August 2024 increased by 34.4% in the Northern Territory (from a very low base), followed by Western Australia (+27.1%), the Australian Capital Territory (+26.8%), Queensland (+24.8%), South Australia (+16.8%) and Tasmania (+3.0%). The two largest states recorded a decline over the same period, led by Victoria (-5.2%), followed by New South Wales (-3.7%).  

The Federal Government has opened applications for the third round of the $74 million Support Plantation Establishment program. Farm foresters, First Nations businesses and the forestry industry are among those who will benefit from funding to support more plantation forests in Australia. Source: Timberbiz The Support Plantation Establishment program is providing grant funding to help establish up to 36,000 hectares of new long-rotation softwood and hardwood plantation forests across Australia. The Government will provide up to $2,000 per hectare of new long-rotation plantation forest established. To date rounds one and two of the program have awarded more than $15 million to 27 projects across Australia that will establish over 8,200 hectares of new plantations. Round three is open for applications from 11 October 2024 to 5 November 2025. Changes to the program have been made for round 3 following widespread stakeholder consultation. Grants will range from one to three years, and projects must be concluded no later than 30 June 2027. Further information about the program’s requirements can be found in the Grant Opportunity Guidelines. “This program underscores the Albanese Labor Government’s commitment to supporting the forestry industry and regional communities, while reducing our carbon footprint,” Minister for Agriculture, Fisheries and Forestry, Julie Collins, said. “By stimulating new growth in Australia’s plantation forest estate, we are helping meet our future demand for timber, creating regional employment opportunities, and building a sustainable and prosperous future while helping to meet our international emissions reduction commitments. “That’s why this grant opportunity continues to play an important role to increase Australia’s future timber supply and reduce our dependence on imported timber. Australia doesn’t have enough timber,” she said. “The Albanese Labor Government supports sustainable forestry, and is investing in forest industry innovation, manufacturing and skills. “We are delivering the most significant forest industry support package in Australia’s history, including more than $300 million to help improve the capacity and capability of the sector.” For more information or to apply, visit https://www.grants.gov.au/