The 2016 State of the Land report, by the Urban Development Institute of Australia (UDIA), has for the first time in its eight-year history, found that uncertainty at the federal level is at greater risk of hurting the property development industry, than state level policies.

The UDIA has made a number of recommendations to all levels of government from the report, to ensure sufficient land supply and affordable housing.

Recommendations for the Federal Government include:

• Retain the current negative gearing and capital gains regimes;
• Broaden the base but not increase the rate of the GST;
• Assist state governments with removing stamp duty on property and replacing it with more efficient forms of taxation;
• Not pursue "value capture" policies that increase the price of new housing;
• Take an active role in the development of cities;
• Provide additional funding for investment in new urban infrastructure, in order to unlock land;
• Continue to encourage foreign investment into residential real estate, by supporting Australia's existing foreign investment policy framework;
• Remedy the unintended effects of Basel III on housing affordability; and
• Promote innovation in cities and regional areas.

According to the report, state and local governments must improve supply via their performance on planning, infrastructure provision, and charging for new developments. Recommendations include:

• Undertake major planning system reform, to increase the supply of urban land and reduce delays and uncertainty associated with zoning, planning and approvals processes; and
• Reduce up front charges and levies on new housing by favouring the recovery of costs over long time frames, rather than up front.