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"The recent decision by the City of Sydney to ban the use of gas appliances in new development is just another example of council’s using planning controls to override nationally consistent building standards set by the National Construction Code.
As outlined in the HIA Getting Keys in Doors Report, building standards in Council DCPs and other policies or guidelines adds around $65 million each year to the cost of building new homes in NSW.
“These council controls restrict consumer choice, add costs and create regulatory complexities that undermine the benefits of a nationally consistent building code,” added Mr Armitage.
“Limits on the electricity load are being imposed on developers today, so suggestions that we just make all new buildings all electric are way off the mark. Gas must still be a crucial part of the energy mix as there simply isn’t the capacity in the existing electrical infrastructure to cope. Bans on gas appliances will only make the construction of new apartment buildings even more unfeasible and increase the cost of buying a new home.
"The NSW Government has a commitment under the ABCB Intergovernmental Agreement to reduce and restrict local government interventions. It’s time the NSW Government made good on its commitment.
“We are in the middle of a housing crisis, so councils should be removing unnecessary red tape to make it easier to build new homes – not harder,” concluded Mr Armitage.
“Obtaining a planning approval for a new home build adds thousands of dollars and months of delay to the home building process,” stated HIA Senior Economist Tom Devitt.
“Obtaining a planning approval for a new home build in Victoria takes over seven months and costs almost $20,000,” stated HIA Senior Economist Tom Devitt.
Are you registered as a builder or trade in another state? You may be eligible to carry out work regulated work in WA. Find out more about JobPass.
“There were just 8,250 residential lots sold nationally in the March Quarter 2025, the weakest quarter of sales for Australia in 25 years,” stated HIA Senior Economist Tom Devitt.