Australian Migration

Foreign construction workers could be brought in to help solve Australia’s housing affordability problem.

Housing Minister Tanya Plibersek spoke positively of the proposal in a speech to the National Press Club, in which she warned a shortage of skilled labour could frustrate the government’s plan to build 50,000 cheap houses in the next five years.

“I am very concerned about the skills shortage in the building industry and in related fields. I have been for some time,” she said.

“I believe that training extra Australian workers and potentially filling the gap in the short term are both important solutions.”

The government is considering a Housing Industry Association (HIA) proposal for a special visa scheme for thousands of overseas construction workers.

The government is also considering allowing more seasonal workers into the country, with a focus on the Pacific region.

The housing minister pulled no punches about the gravity of the housing situation in her speech, saying high house prices and rents were having serious economic and social effects.

She spoke of families having to move constantly, people unable to move to take up jobs because they could not find a place to live, and pensioners living in sub-standard conditions.

“This housing affordability problem has been barrelling down the highway at us like a runaway road train for several years,” Ms Plibersek said.

And she warned the problem would be here for some time.

“I know that people are having a really tough time today. I wish I could tell them that there’s an overnight solution … but it would not be honest to say that,” Ms Plibersek said.

The government’s plan to bring down housing costs includes building 50,000 cheap homes for the rental market by offering tax credits to investors, $500 million to lower local fees and taxes on new housing, and a saving scheme for prospective first home buyers.

Ms Plibersek said these measures would have an impact only in the medium to long term.

She sought to reassure home owners that increasing the supply of housing would not cause house prices to fall. She said the market was divided into sub-markets and increasing supply in one would not significantly affect the others.

“We don’t operate in one housing market in Australia,” she said.