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”The Victorian Government’s decision is only about improving the financial performance of the DBI scheme and is premature as the industry waits for the government to announce possible reforms to the scheme.
“This premium increase, which will directly add to the fees and charges paid by home buyers, will not be accompanied by any changes to the insurance benefits.
“The increase also adds to many challenges facing the residential building industry. This will do nothing to help deliver an increased number of desperately needed new homes.
“Home builder cashflow positions, already precariously thin under the weight of sustained pressure from rising building material and labour costs, will be further squeezed by the significant hike in DBI premiums.
“Builders want to stay competitive, but they will have little option but to factor the premium rise into the cost of a new dwelling and pass on to home buyers,” said Mr Ryan.
While acknowledging pressure on premiums has been building for some time due to VMIA’s growing claims exposure to builder insolvencies in recent years, Mr Ryan said the order of magnitude of the across-the-board increase from 1 September is unfair and without precedence.
The vast majority of Victorian builders are not triggering DBI claims and are continuing to complete homes for their clients despite the current challenges they all face.
“Last week’s decision by the Reserve Bank to keep interest rates on hold provided a respite for the embattled residential building sector.
“This announcement has dented that relief and is a stark reminder to home builders that the cost of doing business in Victoria is getting harder, not easier," concluded Mr Ryan.
October marks the beginning of National Safe Work Month – a time for us all to pause, reflect, and reinforce our commitment to creating a safe and healthy workplace for everyone,” said HIA Hunter Executive Director Craig Jennion.
The Victorian government has introduced changes to OHS regulations that expressly requires employers to identify psychosocial hazards and how they intend to manage the risks to health and safety.
New data from the Housing Industry Association (HIA) shows that ‘gentle density’ is on the rise in a number of states.
Applications for Property Developer Licences under the ACT Property Developers Licensing Scheme opened yesterday. There is a one year phase in, meaning that by 1 October 2026 it will be mandatory for those undertaking regulated residential building work (essentially projects involving three or more dwellings) to hold a Licence.