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“The Federal Government has stated that the new emissions standards won’t increase the costs of utes, 4WD’s or other light-commercial vehicles nor restrict access to these types of vehicles going forward.
“But other industry experts claim to have modelling that shows the new laws will add significant upfront costs and are likely to result in car manufacturers needing to scale back the key types of vehicles our industry relies on to run and operate their businesses.
“At the moment there is no viable alternative to replace these vehicles.
“The building industry hasn’t been directly consulted on these new emission standards, despite their potential direct impacts and we encourage the Federal Government to engage with our industry on the timing and introduction of the proposed new laws.
“Over the past three years, the building industry has faced significant construction price increases, arising from material and labour shortages, as well as a range of changes to building, WHS, taxation and business compliance costs.
“Any further added costs, complexities or regulatory impediments being layered over the top of our industry at this time will only make their jobs harder and have downstream impacts on housing supply and affordability.
“HIA understands the intent of the proposed emission standards in reducing fuel costs and lowering emissions, however, the uncertainty of new laws and lack of information being released is not helpful.
“Therefore, we would encourage the Government to release their modelling to provide clarity and certainty on the new proposed laws to allow industry to adequately gauge the impact of the laws.
“If the Government wants to build 1.2 million houses in five years it needs to consider the needs of the workers who are responsible for reaching that target,” concluded Mr Croft.
Workplace laws are set for more changes in 2026.
Australia’s residential building industry has entered the new year with confidence still on shaky ground for small businesses as rising costs and policy uncertainty continue to cloud the outlook.
Tasmania’s housing market slowed in November, with building approvals falling sharply compared to October. Approvals for new homes dropped almost 20 per cent, and even after seasonal adjustment, the decline was 5.8 per cent.
Australia’s home building industry is expected to strengthen through 2026, supported by gradually improving building approvals and a recovery in demand, but the pace of growth will ultimately depend on how quickly interest rates can fall further, according to the Housing Industry Association.