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"At a time when housing supply and affordability are the most challenging in our history, industry and homeowners should be afforded more time to implement and prepare for such significant changes.
"Whilst today’s announcement on some moderate transitional arrangements by NSW Planning Minister Paul Scully provides some relief, it will only address a limited number of building projects.
"HIA remains deeply concerned on the timing for adoption of the BASIX changes given the scale and complexity of reforms.
"Victoria, South Australia, Western Australia, and Tasmania have all recognised the significant impacts to affordability of increased material and labour costs, interest rate rises and supply chain constraints.
"Providing the housing sector in those states with much needed relief by delaying implementation of the new energy targets.
"HIA calls on the NSW Government to follow the sensible lead of other states and provide a full 12-month delay for the BASIX Standards increases," said Mr Bare.
The key reasons why industry is calling on the NSW Government for additional 12 month phase in period are:
"Given these issues, there is simply not enough lead time for the industry to prepare and adapt their plans, specification and contracts given the scale and complexity of the changes," said Mr Bare.
"It is vitally important that industry has all the tools and criteria in place to enable it to deliver the BASIX changes at the lowest possible cost for new home buyers.
"The bottom line is that housing supply and affordability is being put at risk unnecessarily. The home building industry can adjust and deliver the most cost-effective solutions given sufficient time.
"HIA also called for the new energy measures to only be applied to contracts signed from the implementation date, to spare those already with fixed price contracts or with approved loans being blindsided by the additional retrospective compliance costs.
"We welcome the changes announced on this aspect by Minister Scully and urge the Government to adopt this approach in all such cases in the future," concluded Mr Bare.
“Adelaide, Brisbane and Perth are seeing residential land values grow at a rapid rate, while Sydney and Melbourne’s values remain relatively stable,” stated HIA Senior Economist Matt King.
Plumbing and drainage inspections in the Huntlee and North Rothbury areas are moving from Cessnock City Council to Building Commission NSW.
The BASIX Transition period for eligible signed building contracts will end on 30 September 2024. BASIX Certificates must be generated by this date to apply the pre-1 October 2023 BASIX standards.
“As the number of new homes under construction continues to decline builders are reporting fewer difficulties scheduling skilled trades workers on their jobs, although availability of skilled workers remains worse than prior to the pandemic,” stated Geordan Murray, HIA Executive Director – Future Workforce.