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The Victorian Department of Jobs, Skills, Industry and Regions has released the statement Shaping the future of construction in Victoria: Modern Methods of Construction.
The statement follows HIA’s report on Regulatory Barriers Associated with Prefabricated and Modular Construction. This HIA report called for incentives, targeted funding and continued research and development to accelerate adoption and technological advancement.
HIA Victorian Executive Director Keith Ryan has welcomed the release of the Victorian government statement.
“This is a positive statement by the Victorian government at a time when increasing housing supply has never been more important. Greater use of MMC will help the home building industry improve the supply of new homes.
“However, for MMC to play a bigger role in higher levels of housing supply and faster delivery, it should not be held-back by an outdated regulatory system. Sadly, existing planning and building laws still on the whole assume construction is ‘on-site’ and this must change if MMC is to flourish.
“The statement lists a number of initiatives that will encourage the greater use of MMC. These are all welcomed but reform of the Building Act and regulations is most critical. The other initiatives have little value if the building approval and regulation process as a whole discourages the use of MMC.
“The industry needs the government to remove unnecessary restrictions and update its building legislation so the industry can do what it does best, which is build homes that Victorians want to live in.
“HIA calls on the Victorian government to prioritise its Building Act reforms to support the further uptake of MMC. Modernising the building regulation system to support and not block the uptake of MMC will do more than other proposed initiatives,” concluded Mr Ryan.
Workplace laws are set for more changes in 2026.
Australia’s residential building industry has entered the new year with confidence still on shaky ground for small businesses as rising costs and policy uncertainty continue to cloud the outlook.
Tasmania’s housing market slowed in November, with building approvals falling sharply compared to October. Approvals for new homes dropped almost 20 per cent, and even after seasonal adjustment, the decline was 5.8 per cent.
Australia’s home building industry is expected to strengthen through 2026, supported by gradually improving building approvals and a recovery in demand, but the pace of growth will ultimately depend on how quickly interest rates can fall further, according to the Housing Industry Association.