TODAY's Australian Bureau of Statistics (ABS) data showed Australia’s inflation rate eased to 3.8%, the lowest in four months -- but housing cost pressure remains a major issue according to Master Builders Australia.

Master Builders Australia chief cconomist, Shane Garrett said the result comes after Reserve Bank Governor Michele Bullock signalled that further interest rate increases could be required if inflation was not brought under control.

“While it’s encouraging that the headline rate of inflation is softening, today’s figures continue to show that housing cost pressures remain a problem,” Mr Garrett said.

“The cost of buying a new home is rising at its fastest in three years with a 5.8% increase over the past year. This is the result of a range of unfavourable settings on the supply side of the housing market. Rental inflation also remains stubborn with a 3.6% increase over the year to June 2026,” he said.

The peak body is also warning that inflation cannot be addressed without also tackling the productivity challenges that continue to drive up costs across the economy.

Master Builders Australia will appear before the Parliamentary Select Committee on Productivity this afternoon. They plan to present evidence that productivity-reducing and cost-increasing provisions in CFMEU-backed enterprise agreements make construction projects significantly more expensive to deliver and drive inflationary pressures.

Master Builders Australia national director of policy and legal, Melissa Byrne will tell the committee that unlawful behaviour, poor procurement frameworks and excessive industrial interference undermine productivity, increase costs and fail to deliver safer worksites.

"We will be telling the Senate that the administration of the CFMEU was an important first step, but it cannot be the last," Ms Byrne said.

"Long-term reform is needed to ensure history does not repeat itself when the administration period ends.

"Our six-point plan includes stronger witness protections, the removal of productivity-sapping enterprise agreement provisions, tougher action against anti-competitive conduct, stronger fit-and-proper-person requirements for officials, and the establishment of a dedicated industry regulator.

"These reforms would improve productivity, reduce unnecessary costs and help ease inflationary pressures. The Federal Government must now focus on improving productivity, strengthening accountability and restoring confidence in one of Australia's most important industries,” Ms Byrne said.

www.masterbuilders.com.au

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THE House of Representatives Standing Committee on Employment, Workplace Relations, Skills and Training will hold a public hearing in Canberra on Thursday, July 30, as part of its inquiry into the operation and adequacy of the National Employment Standards (NES).

The inquiry was referred to the Committee on November 27 last year by the Minister for Employment and Workplace Relations, Amanda Rishworth MP.

As it moves towards the end of its hearing program, the committee will explore several specialised issues that have emerged during the inquiry, including evidence requirements for personal leave, long service leave arrangements, and information about working conditions which employers must provide to their employees.

The committee will hear from legal experts, academics, medical practitioners, and stakeholder representatives.

Committee Chair, Dr Carina Garland MP, said the hearing would provide an opportunity to test evidence received throughout the inquiry and seek expert views on practical options for reform.

‘The inquiry has highlighted a number of complex issues that affect workers and employers in different ways, such as discrepancies in long service leave entitlements, the requirement for medical certificates when taking leave and employee rights to information about their employment," Dr Garland said. "This hearing will help the committee examine these issues in greater detail and identify practical solutions to ensure minimum employee entitlements remain clear, accessible and fit for purpose."

The committee will hear evidence from:

• Professor Emerita Sara Charlesworth;
• Law Council of Australia;
• Western Australian Government;
• Royal Australian College of General Practitioners;
• Employment Rights Legal Service;
• SA Portable Long Service Leave;
• Professor Emeritus David Peetz;
• Minerals Council of Australia;
• Australian Dairy Products Federation.

Further information is available on the committee's website.

Public hearing details

Date: Thursday 30 July 2026
Time: 9am to 3.30pm
Location: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live.

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THE Housing Industry Association (HIA) said new independent Australian research has provided further evidence that relatively simple planning reforms can deliver meaningful increases in housing supply.

"New Australian research has reinforced concerns that minimum lot size requirements, many of which were introduced to address planning challenges from a very different era, continue to hold back housing supply today," HIA executive director for planning and development, Sam Heckel said.

The research paper, What Local Land Use Reform Does, and Doesn't Do, by the e61 Institute and the Centre for International Economics examined planning reforms in Adelaide's City of Campbelltown and found that reducing minimum lot size requirements increased housing approvals by 67 percent, with the additional supply largely delivered through townhouses and row housing.

"At a time when governments are struggling to meet ambitious housing targets, many planning schemes continue to impose minimum lot size requirements that limit housing supply and housing choice." Mr Heckel said.

"The impact is not just fewer homes. Restrictive lot size controls often prevent the delivery of smaller and more affordable housing options that can provide an entry point into established suburbs for first home buyers, downsizers and key workers."

The findings support HIA's recent Increasing Gentle Density: Unlocking Subdivision report, which identified minimum lot size controls as a major barrier to increasing housing supply and a conservative reduction of minimum lot sizes could reduce the cost of a new home by more than $200,000 through lower land costs alone.

"Large parts of Australian cities remain subject to lot size requirements that no longer reflect modern housing needs," Mr Heckel said.

"Importantly, this new independent research also demonstrates that when planning barriers are removed, industry responds. The issue is often not a lack of industry capacity, but the planning controls that limit what can be built.

“Australia is already projected to fall well short of the National Housing Accord target of 1.2 million homes.

"If governments are serious about improving affordability and increasing supply, they must be prepared to reform outdated planning controls that prevent land from being used more efficiently.

"There is no shortage of reports, reviews and policy proposals recommending greater housing diversity and more efficient use of residential land.

"What is often missing is the urgency required to translate those recommendations into tangible housing outcomes for Australians struggling to find a home," Mr Heckel said.

www.hia.com.au

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THE Housing Industry Association (HIA) has welcomed the release of the Australian National Audit Office (ANAO) review of the Housing Australia Future Fund (HAFF) and Treasury’s acceptance of all five recommendations -- aimed at strengthening the program’s governance, performance measurement and public reporting.

HIA managing director, Jocelyn Martin, said the audit provided a constructive roadmap for improving transparency and ensuring the fund remains focused on delivering more homes.

“The ANAO has identified several practical improvements that will strengthen the Housing Australia Future Fund, and we welcome Treasury’s decision to accept all five recommendations,” Ms Martin said.

“The first three recommendations focus on governance, risk management and administrative oversight. Strong governance is important for any major government program and these recommendations will help ensure the fund is managed effectively.

“Of particular importance are the recommendations relating to performance measurement and public reporting.

“Australians deserve to know not only how much funding is being committed, but whether the program is delivering homes efficiently, on time and in the locations where they are most needed,” Ms Martin said.

The audit found Treasury’s design of the HAFF had been largely effective, but highlighted shortcomings in performance monitoring, public reporting and transparency around delivery outcomes.

Ms Martin said stronger reporting would improve accountability and help identify barriers preventing projects from progressing.

“Clear and transparent reporting on dwelling delivery, project timelines and funding outcomes will provide greater confidence that the program is achieving its objectives,” she said.

“It will also help government, industry and community housing providers better understand where improvements are required and what is working well.

“At a time when housing supply remains one of the nation’s biggest challenges, it is essential that public investment programs are focused on outcomes and continuous improvement."

While welcoming the recommendations, Ms Martin said broader concerns raised by industry about the operation of the HAFF should not be overlooked.

“The audit should not mark the end of the conversation about how the HAFF can be improved,” Ms Martin said.

“HIA members continue to report that the program can be difficult to navigate, particularly for smaller builders that want to participate in delivering much-needed social and affordable housing.

“Reducing unnecessary complexity and making participation more accessible will help expand the pool of builders capable of delivering projects under the fund."

Ms Martin also said more attention was needed on ensuring the program delivering a broader mix of housing typologies in growth and regional areas.

“To maximise housing outcomes across Australia, HIA supports the program delivering a broader mix of housing typologies, including detached homes, townhouses and low-rise developments in growth and regional areas, rather than being predominantly concentrated in higher-density projects within major capital cities," she said. "This would better reflect housing demand, expand delivery opportunities, improve affordability outcomes and ensure more communities benefit from the program.

“Regional communities continue to face acute housing shortages, and we need to see stronger progress in delivering projects outside our major metropolitan centres,” Ms Martin said.

“The ultimate measure of success for the HAFF is not the number of funding announcements made, but the number of homes delivered for Australians in need.

“HIA looks forward to working with Treasury, Housing Australia and governments to ensure the fund continues to evolve and delivers the housing outcomes Australians expect,” Ms Martin said.

www.hia.com.au

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