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Ms Martin’s comments come as HIA made a detailed submission to the Treasurer’s Economic Reform Roundtable on behalf of HIA’s National Manufacturers’ Council. The submission outlines key reforms to ease regulatory pressure, stabilise energy policy, address workforce shortages and unlock innovation within the manufacturing industry.
“Australian-made building products are the foundation of every new home,” said Ms Martin.
“But the sector is being held back by red, white and green tape, rising energy costs, and worsening skill shortages.
“Manufacturers are increasingly burdened by overlapping regulations, from planning and environmental rules to complex building code changes.
“Our members want to invest and innovate, but governments must get out of their way and let business get on with business.
“We’re calling for a national strategy to reduce red tape, reframe energy policy to support affordable and reliable supply, and boost access to skilled workers.
“The sector is facing severe skill shortages not just on building sites, but in the manufacturing plants that produce the materials that go into new homes.
“Recent HIA analysis found the industry is short over 83,000 tradespeople if it is to meet the government’s 1.2 million homes target by 2029 and the manufacturing sector is under similar pressure.
“We need targeted training programs, streamlined skilled migration pathways, and stronger incentives for employers to take on new workers and trainees.
“HIA’s submission recommends the appointment of a Minister for Red Tape Reduction, targeted support for manufacturers and suppliers to address skill challenges. HIA also proposes the creation of a national Building Innovation Hub to fast-track the adoption of new products, materials and systems.
“With global pressures rising and housing targets looming, now is the time to back Australian manufacturing. This sector is ready to deliver, but it needs the right policy environment to do so,” concluded Ms Martin.
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.