The Business Council of Australia is advocating for a substantial $10 billion federal plan aimed at tackling the ongoing housing crisis by boosting home construction and lowering associated costs.

This initiative includes a housing reform fund designed to incentivize states to address regulatory and planning challenges that hinder housing supply, echoing successful pro-competition models from the 1990s.

The council argues that this approach could significantly enhance housing supply and stimulate economic growth, similar to the benefits experienced in the past.

A recent housing report underscores the urgent need for government intervention, as the Albanese administration is currently falling short of its goal to construct 1.2 million new homes by the decade's end.

To meet Labor's housing accord, approximately 240,000 new homes must be built each year, necessitating an additional 64,000 homes annually beyond current construction rates.

Currently, housing construction is lagging, with only six homes being built per 1,000 people annually, while the target requires nine.

The Business Council also advocates for the nationwide abolition of stamp duty, arguing that it discourages individuals from downsizing and moving into smaller properties.

They propose replacing stamp duty with a land tax, which could generate an additional $19 billion in tax revenue for the Commonwealth over the next decade.

Moreover, the council calls for stricter oversight of local councils to prioritize new housing developments, potentially limiting their decision-making power.

This proposal aims to address the challenges posed by stamp duty and local councils, drawing parallels to successful national competition reforms from the past.

The plan will be officially unveiled soon, suggesting that states could receive financial rewards for removing barriers to new housing projects.

Additionally, the council recommends increased investment in apprenticeships and streamlining trade licensing across states to enhance workforce mobility.