ON TUESDAY MAY 3, the Federal Parliamentary House Standing Committee on Industry, Science and Resources will hold a series of public hearings in Melbourne in support of its inquiry into developing advanced manufacturing in Australia.
Stakeholders from Australia’s health, engineering and space industries are scheduled to appear, as well as representatives of Australia’s tertiary education and research sectors.
The committee will explore a range of matters, including the current level of advanced manufacturing in Australia, major international trends, and strategies to further develop capabilities in this area.
Committee Chair, Rob Mitchell MP said, “It is important to understand the opportunities that exist – and the challenges that our manufacturers face – for building capability in advanced manufacturing.
"This inquiry is seeking to identify opportunities to enhance Australia’s strategic growth and global competitiveness.”
The committee commenced its inquiry into developing advanced manufacturing on February 15, 2023.
Further information about the inquiry, including the terms of reference, is available on the committee’s website: aph.gov.au/isr
HIA senior economist Tom Devitt said the HIA Trades Report for the March quarter 2023 reveals Australia is "still enduring one of its most acute shortages of skilled tradespeople on record".
The HIA Trades Report released this week provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.
“The report’s Trades Availability Index registered -0.75 for the March quarter 2023, compared with 0.90 a year earlier,” Mr Devitt said.
“This still represents one of the most acute shortages of skilled tradespeople since HIA started this report in 2003. The shortages are particularly acute in Australia’s regions and in trades like bricklaying, carpentry and roofing.
“As more workers arrive from overseas, home building and renovations timelines that have blown out during the pandemic will shrink. The demand for and the supply of skilled tradespeople will approach equilibrium again," he said.
“The rate of increase in the price of trades already appears to be moderating.
“The rates paid for skilled trades were increasing at 7.5 percent per year during the pandemic, compared with just 2 percent per year before the pandemic. The last three quarters have seen this rate moderate, with the price of trades even declining by 0.03 percent in the most recent quarter.
“As the volume of work currently underway remains large, the effects of consecutive rate hikes by the RBA have yet to reach the Index.
“It is anticipated that the RBA’s actions to date will result in a more significant easing of the shortage of trades later this year, as well as some more declines in the prices of trades," Mr Devitt said.
“The current pipeline is progressively being completed, with an increasing number of projects being cancelled. The number of new projects commencing construction is also set to fall to its lowest level in over a decade.
“This will see the volume of homes under construction shrink and demand for skilled trades fall,” Mr Devitt said.
THE Housing Industry Association (HIA) has welcomed National Cabinet’s agreement this week to support a range of reforms to address housing supply.
HIA deputy managing director for industry and policy, Jocelyn Martin said the decision to tackle planning reforms to increase housing supply and affordability would ultimately lead to more affordable rental accommodation and provides the capacity to deliver social housing without impacting housing supply more broadly.
“The HIA has always agreed more needs to be done at the Federal, state, and local level of government, to achieve a sustainable level of supply where both the cost of buying or renting a house is in the grasp of the average Australian,” Ms Martin said.
“Today’s announcements recognise the extent of the housing crisis is a shared challenge. The Housing Australia Future Fund will provide the crucial base for these reforms to occur. It is important the opposition and cross bench do not delay in passing these Bills.
“HIA is ready to work closely with industry and with all levels of government to ensure that these reforms come to fruition. Without changes such as these, the housing problem will only worsen, governments on all levels have a role to play and todays proposals are a good step forward to easing the problem” concluded Ms Martin.
THE building community welcomes the National Cabinet’s announcement this week for a national approach to reforms to address the housing crisis, according to Master Builders Australia.
Master Builders Australia CEO Denita Wawn said the decision to tackle infrastructure investment, planning reforms to increase housing supply and affordability alongside sustainable growth across states and territories was an important signal for the industry.
“Industry will work closely with the planning Ministers and National Cabinet to ensure all options are on the table and there are no unintended consequences of other reforms that may dampen this effort,” Ms Wawn said
The Federal Government also announced a series of other measures to boost investment for increasing housing supply including: increasing the depreciation rate for eligible new build-to-rent projects, and reducing the withholding tax rate for eligible fund payments for managed investment trusts to foreign residents on income from newly constructed residential build-to-rent properties.
“We are seeing rental inflation accelerate to its fastest pace since 2012 brought on by shortages in land supply and exacerbated by rising interest rates," Ms Wawn said.
“For many builders and developers, initiating large-scale home building projects in the current environment is simply too risky as medium to high density is most sensitive to interest rate fluctuations.
“Measures to make the housing industry a more attractive place to invest is welcome at a time when communities are crying out for more supply.
“This is only one piece of the jigsaw, and we urge the Opposition and crossbench to not delay the passing of the Housing Australia Future Fund which is another piece to attract investment in social and affordable housing.
“More needs to be done to speed up the delivery of new housing in the medium and high-density part of the market over the short term. Government efforts to expand the stock of build-to-rent will provide welcome support," Ms Wawn said.
“The challenge will be to make sure that we put downward pressure on building and construction costs to increase output.
“Builders continue to face regulatory burdens and prolonged delays in approvals for building applications, occupation certificates and land titles. Additionally, land shortages in the wrong places, high developer charges and inflexible planning laws are restricting opportunities to meet demand, speed up project timelines, and minimise costs to both builders and their clients,” Ms Wawn said.
Master Builders’ Delivering the housing needs for all Australians recommends policies around housing supply, workforce, supply chain risk and cost pressures, simplifying regulatory settings that support investment in housing and business productivity.
THE outcomes arising from the Australian Government's review of the migration system have been broadly welcomed by the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent providers in the skills training and higher education sectors.
Given that independent skills training and higher education providers support more than half of the onshore international student enrolments, the Australian Government’s announcements are critical for ITECA members, an internal report found.
“ITECA members agree with the Australian Government that students need simple pathways to stay in Australia if they have the skills and capabilities that businesses need," ITECA chief executive Troy Williams said.
"In that context, ITECA looks forward to working with both the Minister for Education and the Minister for Skills and Training to ensure that independent tertiary education providers committed to quality can continue supporting international students wanting to come to Australia,” Mr Williams said.
The linkages between international education and addressing Australia’s skills needs are critical areas of reform, according to ITECA.
“From the perspective of the international education sector, it’s great to see a commitment to closer alignment of the nation’s skills needs and international education. The Minister is correct to say that the migration system will never be a substitute for adequately skilling Australian workers, but there are also benefits in leveraging the skills of international students in Australia with the education and skills our economy needs,” Mr Williams said.
ITECA has welcomed a more appropriate architecture for international student visa processing.
“International students and Australia’s international education sector are baffled by too many visa categories and lengthy processing arrangements that produce inconsistent outcomes. ITECA members welcome a more transparent and less complicated system,” Mr Williams said.
Of interest to ITECA members is a commitment to ensure that a whole-of-government approach is taken to migration matters.
“Jobs and Skills Australia will have a lead role, and ITECA is pleased to see an acknowledgement that the state and territory governments have a role to play. At the end of the day, all job needs are local, as to are the housing shortages that impact international students. The state and territory governments are critical to this conversation,” Mr Williams said.
ITECA will work with the Australian Government as issues associated with implementing the recommendations are considered, he said.
About ITECA
Formed in 1992, ITECA is the peak body representing Australia's independent providers in the skills training, higher education, and international education sectors.
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