Treasury Warns 1.2M Homes Target Unlikely, Chalmers Defends Plan

Treasurer Jim Chalmers has reaffirmed Labor's commitment to building 1.2 million new homes by June 2029, despite Treasury advice indicating the target is unlikely to be met under current trajectories. Partially unredacted files revealed through a Freedom of Information request showed Treasury warning that the National Housing Accords would fall short and suggested reviewing the national housing agency, Housing Australia. The advice also recommended raising taxes and cutting spending to restore budget sustainability, which Chalmers downplayed, emphasizing the need for more effort and cooperation with states, territories, and industry to meet the ambitious goal. Challenges include increased construction times and rising costs of building materials, with recent data showing a 50 percent increase in the time to build freestanding homes and a 53 percent rise in material costs over the past decade. While opposition voices, such as the acting Coalition housing spokesman, argue Labor will fail to meet its promise, Chalmers and Housing Minister Clare O'Neil maintain that policy changes and investment can still enable progress towards the target. Economists and industry groups warn that current construction levels need to increase by about 50 percent to meet the goal, underscoring the significant challenges ahead.