Data centres threaten PM’s housing goals, industry warns
Prime Minister Anthony Albanese faces a warning from the housing industry that the data centre boom is jeopardising his goal of boosting housing supply. The Housing Industry of Australia (HIA) has told the Albanese government that data centre developments are already displacing housing projects, creating competition for land, electricity, and water at a time when the country needs more homes.
HIA chief executive Simon Croft said housing should be afforded the same urgency as data centres, arguing that land previously earmarked for housing in NSW and Victoria is being fast-tracked for the technology sector. He noted that a data centre spanning many hectares could be approved faster than a single home under current planning mechanisms.
“While data centres may play an important role in Australia’s economic future, governments must not lose sight of the country’s most urgent challenge – delivering enough homes for a growing population,” Croft said. He warned that families looking for a home should not find themselves behind data centres in the queue for land, energy connections, or essential infrastructure.
Tax reforms blamed for investment drop
The Business Council of Australia (BCA) has condemned the capital gains tax (CGT) reforms announced in the May budget, arguing they will reduce investment, productivity, and economic growth. The council’s submission to Treasury’s consultation on carve-outs claims the proposed exemption for innovative start-ups is too narrow and explicitly excludes the construction industry.
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“The proposed carve-out is an admission and recognition that the overall package of CGT reforms will reduce investment,” the BCA’s submission states. The group criticised the consultation paper for the “explicit omission of innovative businesses in the construction of infrastructure (which) is perplexing and harmful.”
Construction productivity has been falling well behind the economy-wide average, and the council believes the tax changes risk undermining Australian ambition at a critical time. Liberal MP Andrew Bragg echoed these concerns, suggesting the high capital gains tax rates could drive investment to Singapore or Silicon Valley.
While the government has promised to legislate rules for data centres and use a proposed Digital Duty of Care to require developers to underwrite their own energy supplies, the HIA is pushing for greater scrutiny. The industry body supports the Prime Minister’s push for a safety framework but insists the housing supply crisis cannot be ignored.
There is a push at Labor’s national conference to end the GST on public housing services, though the Albanese government’s tax agenda remains a contentious issue for business groups. The Business Council argues the government’s preferred model for the CGT carve-out fails to maximise coverage and places a subjective burden on businesses to prove their innovative potential to a bureaucrat.
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The government has also vowed to consider overhauling privacy, industrial relations, and consumer protection laws to deal with artificial intelligence, while developing a framework for automated decision-making within the commonwealth bureaucracy. The party’s new platform will codify the contentious tax hikes into the formal agenda, with the national executive re-elected unopposed at the conference in Adelaide.
The housing industry’s warning highlights a growing tension between the government’s desire to support economic growth through data centres and the immediate need to address the housing affordability crisis. With land and resources already under strain, the success of the Prime Minister’s housing goals will likely depend on how effectively the government balances these competing priorities.
Lion Energy sees more oil and gas value [1].
New Zealanders lack retirement savings clarity [2].
