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“HIA acknowledges the need for accountability in the development and construction sector, though there is a balance to be struck between ensuring that consumers are protected and that businesses are not unduly hindered in addressing the critical housing shortage within the Territory,” said Greg Weller, HIA Executive Director ACT/Southern NSW.
“As the draft legislation stands, it casts the net incredibly wide as to who is deemed a developer. It is our understanding that there are to be limitations created at a later date through Regulation, however, while this detail is not known there is great deal of uncertainty as to who is covered and who is not.
“The ACT has a very effective builders licensing regime, which coupled with Builders Warranty Insurance, provides a functioning system that protects consumers in the event of non-completion or defects for all dwellings up to three stories. To overlay this with an additional licensing scheme, will do little to increase accountability or consumer protection, but add additional costs and red tape to building.”
Alongside the developer licensing proposal, separate legislation also proposes to create a ‘reverse onus of proof’ for builders and developers when in litigation.
“Rather than requiring the person or group pursuing an action to establish that the builder or developer has caused the alleged problem, this effectively requires they prove their innocence. In many circumstances this could be impossible, with a builder having no control over what happens after handover.
“This is a fundamental shift from one of our basic principles of law, that you are innocent until proven guilty.
HIA remains committed to working with the Government on sensible reforms as the legislation progresses through the Legislative Assembly,” concluded Mr Weller.
The Housing Industry Association (HIA) has undertaken an assessment of National Cabinet’s 10 point National Planning Reform Blueprint including identifying, and in some cases re-defining, the key planning reform measures needed from the Blueprint to enable the delivery of National Cabinet’s Housing Accord target of building 1.2 million homes over the next 5 years.
“It is nine months since the RBA’s last rate rise and market confidence is returning. It is only the heavily taxed markets of NSW and Victoria that are yet to see a trough in detached home building in 2024,” stated HIA Chief Economist, Tim Reardon
Following the introduction of the engineered stone ban around the country earlier this year, new rules when working with silica products will come into effect from 1 September.
“Detached home building in the nation’s capital is constrained, sitting at record lows, with the current affordability crisis expected to persist for years,” stated HIA Executive Director, Greg Weller.