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Victoria has announced a change in its position, recognising that industry needs more time to digest and implement the biggest changes to the NCC since its inception that will make every new home more expensive, and less affordable for homebuyers already struggling under the weight of interest rates and material and labour cost increases.
HIA Executive Director for Queensland, Michael Roberts said that Victoria was providing a template for Queensland, recognising the impact of NCC changes in exacerbating the housing crisis.
“Victoria has seen that the midst of a housing crisis is not the time to contribute to a forced increase in the price of all new houses,” Mr Roberts said.
“We have heard from our members that the cost of implementing new NCC specifications that will make it compulsory for every house to accommodate disabled occupants, and to increase energy efficiency standards well beyond what is required in Queensland, will add $20,000 to $30,000 per house.
“We also know that the cost implications for homes built off-the-ground on stumps, like a traditional Queenslander, mean this style of construction could be consigned to the history books.
“While we have tried to work with Government, HIA’s position has consistently been that the proposed changes go far beyond the minimum standard that is supposed to be set under the NCC.
“Changes are due to come into play in just over three months. The fact is that the industry doesn’t yet have the updated software required to assess energy efficiency, and the government is yet to commence its education program. The evidence is clear that no one is ready for such significant changes.
“Now with Victoria leading the way, the Queensland Government has a perfect opportunity to change direction to support our industry in the continued supply of quality, affordable homes that is needed over a long period to address the housing crisis, without additional impediments being rushed in,” Mr Roberts said.
“Australia’s population reached 27.4 million by the end of 2024, up by 445,900 people, or 1.7 per cent for the year,” stated HIA Senior Economist, Tom Devitt.
The Tasmanian election that no-one wanted to have is in full swing, and while the limited campaign period is unlikely to provide the usual platform to promote key policies and reforms, HIA is calling on both major parties to prioritise housing policies given the significant challenges across the state.
“Our dated and complex planning system is littered with speed bumps that could easily be removed”, said Brad Armitage, HIA NSW Executive Director.
“The Victorian government’s proposal to update home building contract laws to make them fit for use in the 21st century is welcomed by HIA,” stated HIA Executive Director, Keith Ryan.