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“HIA’s regular engagement with the Victorian government has enabled us to make several suggestions to address the current challenges facing the home building industry stemming from acute labour shortages and material cost increases that are creating delays in building work and causing cash flow difficulties,” added Mr Ryan.
“There is a need to reform the domestic building contract legislation to ensure that builders are paid more promptly for work that they have undertaken.
“Builders have faced significant ‘cash flow’ challenges over recent years, which are largely attributable to this legislation.
“Reform of this legislation will take time to implement and will not address the current challenges, or contracts already signed. Possible reform is positive news from the government at a time when industry needs confidence and certainty.
“Unnecessary red tape and delays in the planning process, along with out-of-date domestic building contract laws, have exacerbated the labour shortages and material cost increases. Victorians are disadvantaged by these out-of-date laws.
“Reform will reduce delays in supplying new homes and allow builders to enter into better contracts that balance price certainty and flexibility for consumers.
“We look forward to continuing to work with the government through this process,” concluded Mr Ryan.
Over the past few weeks HIA has been advocating strongly on behalf of members on a range of policy and regulatory issues that have significant implications for housing supply, business confidence and the capacity of our industry to deliver the homes Australia needs.
The Housing Industry Association (HIA) has today written to the Tasmanian Government calling for a commitment that state-funded and state-partnered housing work will continue to be awarded on merit, not industrial arrangements, warning new federal procurement rules could shrink the pool of builders able to deliver the homes Tasmania needs.
The Victorian Government continues to push ahead with its Working from Home laws despite the Housing Industry Association’s (HIA) call for it to abandon its proposed legislation, warning the changes would impose additional regulatory pressure on businesses already struggling and kill productivity.
Hobart has been identified as the most restrictive capital city in Australia for planning, according to the Australian Zoning Atlas, which found 97 per cent of the city's residential land is subject to restrictions that limit new housing.