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“The extension was a positive step that acknowledged industry concerns, but the underlying issue remains,” said HIA Chief Executive Industry and Policy, Simon Croft.
“HIA has raised concerns with the federal government on behalf of Australian manufacturers and builders about this looming problem, so this extension provides an opportunity to further these discussions.
"However, the extension simply buys time. Australia still needs a long-term plan to protect this critical national asset," Mr Croft said.
"It is about ensuring Australia retains the testing capability needed to certify safe, compliant and innovative building products.
“The North Ryde facility plays a vital role in testing products used throughout residential construction, including timber windows, doors, plasterboard systems, flooring, façade assemblies and bushfire-rated building materials.
“Without it, Australia risks relying on a single private provider for many forms of fire testing. This reduces competition, risking increasing costs and creating uncertainty and longer delays for manufacturers seeking certification.
"At a time when governments are focused on lifting productivity and delivering more homes, we cannot afford to lose nationally significant testing infrastructure," Mr Croft said.
"This extension gives governments, CSIRO and industry a genuine opportunity to find a permanent solution. We urge all parties to use this time to secure Australia's long-term fire testing capability.
"If six months passes without a long-term commitment, we'll simply be back having the same conversation with the same risks hanging over manufacturers, builders and home buyers.
"A six-month stay is an opportunity that should not be wasted. The clock is now ticking, and industry will be looking for a positive solution," concluded Mr Croft.
HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).
The Housing Industry Association (HIA) has welcomed the decision to extend the lease of CSIRO's North Ryde fire testing facility by six months, saying the announcement provides valuable breathing space but does not resolve the long-term threat to Australia's building product testing capability.
“The strong pipeline of multi-unit dwelling approvals recorded during the second half of 2025 has begun to translate into construction activity,” said Geordan Murray, HIA Executive Director ACT & Southern NSW.
The Housing Industry Association (HIA) has welcomed Leader of the Opposition Angus Taylor and Shadow Minister for Skills and Training Senator Jacinta Nampijinpa Price to the HIA Skills Centre in Darwin this week to meet apprentices and discuss the workforce challenges confronting Australia's residential construction industry.