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HIA Victorian Executive Director, Keith Ryan, said the home building industry is currently dealing with challenges arising from increases in the cost of building products and fuel, caused by the conflict in the Middle East. Further NCC changes at this time will only compound further costs for builders and homeowners.
“It does not make any sense to impose new laws at this time and especially with only 4 weeks’ notice. Particularly in the face of surging energy prices and global uncertainty,” said Mr Ryan.
“Receiving notification today with just a month’s notice is extremely disappointing.
“The conflict in the Middle East has led to a surge in fuel costs and also a surge in costs of building materials. These changes are impacting builders across the country particularly those on fixed price contracts.
“Last week HIA wrote to the Premier and the Building Minister noting the impact of fuel cost increases and suggesting that NCC 2025 and other reforms be paused while the industry responded to these challenges.
“The decision to go ahead and impose NCC 2025 now suggests that the Allan government is indifferent to the impact of law changes on industry and eventually on consumers who have to pay higher prices for home building as a result.
“With the Victorian government being silent for so long it has allowed for greater uncertainty about the NCC commencement date and will cause more industry disruption and complexity. This is despite the government being repeatedly told by HIA that uncertainty causes much stress and cost for businesses.
“This move to bring forward the NCC 2025 commencement date places Victoria at odds to almost all other states and namely NSW and Queensland who sensibly chose to delay NCC 2025 until 1 May 2027.
“Let us not forget that the Victorian Government has previously committed to support the home building industry to build 800,000 homes in ten years.
“The key message from the Victorian government today seems to be that they expect home builders to build more homes without any support from the government,” concluded Mr Ryan.
The Victorian Government's Working from Home Bill has become available, and proposed buyer protection laws have undergone some changes.
On 15 January 2026, penalties for non-compliance were increased under the Building Work Contractors Act 1995, Fair Trading Act 1987, and the Plumbers, Gas Fitters and Electricians Act 1995. The reforms also introduced new offences including undertaking, or engaging others to undertake, unlicensed work.
HIA advocates for a more transparent, efficient and accountable Australian Standards system. This policy outlines HIA's recommendations for improving the development and enforcement of Australian Standards, and the role of the Australian Building Codes Board in assessing the impact of standards referenced in the National Construction Code.
“Australia needed to build more than 250,000 homes last year just to keep pace with demand growth and begin reducing the housing shortage and yet we commenced less than 200,000 homes. This is why home prices and rents are rising,” stated Tim Reardon, HIA’s Chief Economist.