CANBERRA’S building work approvals are experiencing the largest decline nationally with a 76.9 per cent drop compared to last year, according to new figures from the Australian Bureau of Statistics. 

Master Builders ACT CEO Michael Hopkins says Canberra’s strong population growth and economic fundamentals traditionally buffer the local building industry from national declines, however, local factors including delays in the ACT’s development approval system are now weighing heavily on the local industry.

“For the past 12 months members have reported that the time taken to receive a development approval in the ACT is taking longer, with delays of up to 10 months not uncommon,” he says. 

Mr Hopkins says accountability indicators for the environment, planning and sustainable development directorate released with the 2019-20 ACT Budget shows 39 per cent of development application decisions were made within statutory timeframes.

“The value of commercial building work in the ACT was $0.1 Billion for July, 2019, down 63.4 per cent compared to the same month last year, and total dwelling approvals were 277 in July down 63.5 per cent compared to the same month last year,” he says. 

“Government has been too slow to respond to the development approval crisis. Additional resources alone are not enough to restore industry’s confidence in the independent planning authority.

“The MBA has suggested ACT government consider recruiting resources from other parts of government, utilising resources within the private sector, and setting up a fast-track system for simple low value applications.”

“Without urgent action by government to correct the crisis in development assessment investment, jobs and local businesses are at risk.”