Australia Launches $900 Million Fund to Boost Housing Productivity

The fund aims to incentivize states to remove regulatory barriers and adopt modern construction methods to address the housing supply crisis.

Treasurer Jim Chalmers announced a new $900 million National Productivity Fund to encourage states to streamline regulations and boost housing construction efficiency.
The fund is part of a broader strategy to improve Australia's lagging productivity, which has not seen significant improvement in decades, especially in the construction sector.
States can access the fund by implementing reforms that enhance competition and reduce costs in areas like modular home construction and commercial zoning.
A Productivity Commission report suggests that these reforms could potentially increase GDP by $45 billion annually and reduce consumer prices by nearly 1.5 percentage points.
The initiative is reminiscent of past national competition policies and aims to deliver financial benefits to households, potentially making them $5000 better off annually.