<?xml version="1.0" encoding="ISO-8859-1"?> <docID>328101</docID> <postdate>2024-09-01 12:42:52</postdate> <headline>Funding block flagged for states failing to build homes</headline> <body><p><img class="size-full wp-image-328102" src="https://citynews.com.au/wp-content/uploads/2024/09/20220907001699471496-original-resized.jpg" alt="" width="900" height="539" /></p> <caption>The federal government has tried to incentivise states to put more investment into building houses. (Darren England/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Dominic Giannini</strong> in Canberra</span></p> <p><strong>Withholding GST and infrastructure payments from states if they fail to come to the table to ease a housing crisis are being flagged by the opposition.</strong></p> <p>The Albanese government has tried to incentivise states to clear red tape and put more investment towards building houses as Australians are priced out of a surging market.</p> <p>Opposition infrastructure spokeswoman Bridget McKenzie flagged federal infrastructure funding as a lever to put pressure on states to stump up on housing with the crisis getting "worse, not better under Labor".</p> <p>"The coalition will have a plan that opens up more housing supply for everyday Australians," she told AAP.</p> <p>"There is a range of levers available to the commonwealth to incentivise state and local governments to increase housing supply.</p> <p>"The Commonwealth taxpayer contributes billions of dollars in infrastructure funding through national partnership agreements and grant programs."</p> <p>Opposition assistant spokesman for home ownership Andrew Bragg said the federal government "need to be creating and finding a way to hit the states hard where it hurts," so they invest more in housing.</p> <p>"Everything is under consideration," Senator Bragg told the ABC's Insiders on Sunday when asked about withholding GST payments as a bargaining chip.</p> <p>"When you see councils and states block developments, particularly apartment buildings, that is a disaster for young people.</p> <p>"So we have to hit the states and the councils in whichever way we can to make sure that we build the supply that's needed."</p> <p>Nationals Leader David Littleproud said he hadn't seen a proposal about GST being used as a lever but "we shouldn't have to get to a stick situation".</p> <p>"This is a crisis ... and we're in this predicament because of state and local governments inability to plan and to act," he told AAP.</p> <p>"So they need to get on with the job - I think every Australian expects that of them."</p> <p>Bringing in more skilled workers would also help address this, Mr Littleproud said.</p> </body>