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“The 65 per cent increase for new single and multi-unit dwellings, which takes effect from 6 August this year, comes on top of the substantial 43 per cent increase last September. It is another hit to an already suffering home building industry in Victoria.
“It means new home buyers face more fees and charges, with the typical home in Melbourne already paying more than 40 per cent of the cost of a new house and land package in taxes, fees and charges – which is locking thousands of Victorians out of home ownership.
“For example, premiums for a new single dwelling with a contract value of $300,000 will rise from $2,635 to $4,348. For a new home costing $500,000 they will increase from $3,872 to $6,388.
“Home builders are already struggling from increased building materials and labour costs and will be further tested by this latest increase which ultimately will be borne by home buyers.
“Equally it is disappointing that these increases are not accompanied by any changes to the insurance benefits for home buyers.
“At a time when the Victorian government is looking to significantly boost housing supply and deliver 800,000 desperately needed new homes over the coming ten years, the industry and consumers need all parts of Government working together to lower home building costs.
“While it is acknowledged that pressure on the VMIA continues to rise due to its exposure to builder insolvencies and increased costs in recent years, such large premium increases unfairly impose the burden of responding to these claims on home builders and their clients.
“Today’s announcement is unfortunately yet another reminder to consumers and home builders that the housing crisis in Victoria cannot be solved while government agencies continue to impose more costs and taxes on home building in Victoria,” concluded Mr Ryan.
The Housing Industry Association (HIA) has welcomed the focus on housing in the 2025/26 ACT budget to be handed down tomorrow, according to HIA Executive Director for ACT & Southern NSW, Greg Weller.
"Today's announcement of skills funding in the upcoming budget is welcomed by the housing industry," said Brad Armitage, HIA NSW Executive Director.
HIA welcomes the release of the NSW Government’s draft Guideline to speed up the delivery of new homes and infrastructure through works-in-kind agreements with developers.
“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.