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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“Unnecessary red tape and delays in the planning process, along with out-of-date domestic building contract laws, have exacerbated the labour shortages and material cost increases. Victorians are disadvantaged by these out-of-date laws.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.
“The RBA decision to keep interest rates in restrictive territory today will not stop the improvement in leading indicators of future home building,” stated HIA Senior Economist Tom Devitt.
In mid-June 2025, the NSW Premier released the Housing and Productivity Contribution (HPC) Works-in-Kind Guideline for public consultation.
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
Housing Industry Association welcomes today’s announcement by the Cook Labor Government to review key aspects of the home building contracts legislation and provide the building regulator with additional powers to work with builders in distress.