Terms of Reference
Rationale
The Australian Government is concerned to improve housing affordability for home buyers and renters. The government recognises that better information on supply and demand at local, regional, state and national levels could play a valuable role in improving affordability by guiding policy, practice and market behaviour. The government has established the National Housing Supply Council (the Council) to aggregate and assess data on housing supply and demand and to report to the Minister for Sustainability, Environment, Water, Population and Communities on its findings.
The Council of Australian Governments (COAG) supports the establishment of the Council and has agreed to the establishment of a Working Group of state, territory and government officials to ensure data needed by the Council are supplied to it.
Through its various agencies, the government has considerable information on the demand side – notably demographic, immigration and household income and expenditure data – as well as some supply–side information – such as Australian Bureau of Statistics data on housing approvals and commencements and Australian Institute of Health and Welfare data on social housing and responses to homelessness. States and territories know about the state of land supply, zoning and planning frameworks, and about residential infrastructure requirements and financing. The Council will access and assess these and other data to analyse the balance between demand and supply and help governments at all levels to address housing affordability in an effective and sustainable way. To the extent feasible, the Council will undertake this analysis at both aggregate and disaggregate level.
Role of the National Housing Supply Council
The Council will provide forecasts, analysis and policy advice to the Minister for Sustainability, Environment, Water, Population and Communities and publish an annual State of Supply Report on the adequacy of land supply and construction activity to meet demand and improve affordability over a 20–year forecast period. The Council will:
- adopt consistent national standards in measuring and assessing the supply of land and housing and their relationship with housing demand and affordability;
- provide a detailed assessment of trends in land availability, construction activity and housing affordability,
- identify possible ways of ameliorating obstacles and otherwise improving the supply response;
- advise on research findings and desirable additional research on housing demand, supply and affordability at regional, State and national levels.
Accordingly, the Council's State of Supply Report will provide consistent data on trends and forecasts of housing demand and supply at national, state and territory and local scales. The report will incorporate assessments of, among other things:
- demographic factors influencing demand such as growth and structure of households, immigration rates and patterns, and the movement of households between cities, regions, state and territories
- economic factors (cyclical and structural) influencing demand, supply and affordability such as the growth and distribution of household incomes, relative returns from investment in housing, the availability and cost of finance for developers and consumers, business and consumer confidence, and the cost, availability and productivity of land, labour and materials
- development control arrangements – planning and zoning, development assessment, building approval processes, building standards and related market practices – affecting the release of land, development activity and redevelopment potential, including with respect to the variety of different types, sizes, densities and prices of housing
- infrastructure provision and financing
- factors influencing or inhibiting industry innovation in housing and community–building product
- practices and output in the public and not–for–profit housing sectors and at the low–cost end of the private rental and home purchase markets.
In considering these matters, the Council will focus particularly on the factors affecting the supply and affordability of housing for families and other households in the lower half of the income distribution as well as on the adequacy of, and movement in cost of, housing supply generally.
In considering housing affordability and factors making housing more or less affordable, the Council will consider the immediate and long–run price of housing relative to household incomes. Accordingly, it will attempt to address house and land prices, residential rents, interest rates and other recurrent costs (including of utilities, transport costs and other matters affecting the 'sustainability' of housing in various locations).
The Minister for Sustainability, Environment, Water, Population and Communities may request specific advice from the Council.
Modus Operandi
The Council is supported by a budget determined by the Minister and a Secretariat in the Australian Government Department of Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) as well as by the Housing Data Working Group and the presence at all Council meetings of senior ex–officio representatives of the Australian Treasury and DSEWPaC.
The Council aims to develop and maintain strong relationships with representatives of the building and development industries, planning and development control agencies, key policy agencies and other key interest groups. It also aims to develop strong working relationships with data and research bodies, including the Australian Bureau of Statistics, the Australian Institute of Health and Welfare and the Australian Housing and Urban Research Institute.
The Council aims to meet four times per year at times designed to set the agenda and work program for the annual State of Supply Report, monitor and guide progress, assist with analysis and the development of findings, consider policy and practice implications and authorise the final report.
As far as is practically possible, the Council will meet in a variety of locations to facilitate the development of strong relations with and the engagement of key interested parties.
Council reports will be presented to the Minister and subsequently published on the internet.
Minutes of meetings will be maintained recording a summary of key discussion points, agreed decisions and actions. Progress reports including the Minutes will be provided to the Minister after each meeting.
The State of Supply Report will include:
- an assessment of the current balance between housing demand and supply
- likely trends in demand, supply, affordability and their underlying drivers
- an early assessment of major inhibitors and contributors to better balance housing supply and affordability.
Additional issues will be covered where relevant.
Members of the National Housing Supply Council
The Council comprises a Chair plus eleven Members. Appointments to the Council are made by the Minister for Sustainability, Environment, Water, Population and Communities in consultation with the Treasurer. The Chair is appointed for up to three years and Members for two years. The Minister, in consultation with the Chair, will elect a deputy Chair. The Chair and Members will be appointed as individuals and not as a representative of organisations or businesses.
The Chair is responsible for convening and chairing the Council meetings and presenting the annual State of Supply Report to the Minister for Sustainability, Environment, Water, Population and Communities.
Members will be appointed for their individual capacity and expertise in an area relevant to the housing industry as set out below. Members are responsible for attending meetings and contributing to the work of the Council by offering insight and guidance based on their expertise. Sector representation sought in the membership of the council encompasses the housing, property and building and construction industry, planning and development, social welfare and community housing, banking and finance, and housing research.
Current Members of the Council are:
| Dr Owen Donald, Chair | Former Director, Housing Victoria; former CEO, Australian Housing and Urban Research Institute |
| Mr Saul Eslake, deputy Chair | Director, Productivity Growth, Grattan Institute; Advisor, PricewaterhouseCoopers’ economic practice |
| Ms Janet Buhagiar | Director, Social Policy, NT Government |
| Ms Dyan Currie | National President, Planning Institute of Australia |
| Ms Sue Holliday | Managing Director, Strategies for Change Pty Ltd |
| Professor Graeme Hugo | Australian Research Council Professorial Fellow, University of Adelaide |
| Mr Mark Hunter | CEO Residential, Stockland |
| Mr Simon Norris | General Manager, Clarendon Homes Queensland |
| Ms Mary Patetsos | Chair, SA Local Government Grants Commission |
| Mr Nigel Satterley AM | Managing Director, Satterley Property Group |
| Ms Ruth Spielman | Executive Officer, National Growth Areas Alliance |
| Dr Judy Yates | Honorary Associate Professor, University of Sydney |
In addition, the following senior Australian Government officers attend Council meetings:
| Malcolm Thompson | Deputy Secretary, DSEWPaC, ex–officio participant observer |
| Catherine Skippington | First Assistant Secretary, DSEWPaC, ex–officio participant observer |
| Angela Woo | Principal Advisor, Treasury, ex–officio participant observer |