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“The Planning Amendment (Better Decisions Made Faster) Bill before Parliament includes many significant planning reforms industry has long called for and industry wants to see the two major parties come to the table and get these reforms passed.
“The proposed amendments to the planning permit process will speed up approvals and provide industry and homeowners with greater certainty and cost reductions in the delivery of new homes.
“One of HIA’s key asks was to remove unnecessary barriers to planning applications for simpler projects. The proposed amendments recognise that home building projects do not need to be held up by unnecessary restrictions giving local councils more ways to say no.
“The Australian Greens have moved amendments to the Bill to compel the Victorian government to introduce inclusionary zoning into the planning system – and disappointingly it appears the Labor government is considering the Greens proposals in an attempt to remove the impasse and get their planning reforms passed.
“This would be a worst case outcome for industry and homeowners as those proposals would essentially mean a new tax on housing, the so-called affordable housing contribution, to be imposed as a condition of a planning permit by local government.
“Taxes and regulatory costs already make up almost half the cost of a new home in Victoria. Now it seems that the new planning reforms are being held to ransom, and if Labor pass these laws with this new “affordable housing” tax it will make new housing projects become even less financially viable in Victoria.
“Planning reforms are too important to be held up by political point scoring. We need the planning reforms passed now without even more taxes being added to the mix.
“HIA is urging Labor and the Coalition to come to the table and pass a sensible suite of planning reforms to let homes be approved faster so builders can get on with the job of getting more Victorians into new homes sooner”, concluded Mr Ryan.
In what has been a difficult time for many Victorians, HIA welcomes the package of support measures announced by the Allan and Albanese Governments to support businesses, individuals and communities affected by the recent Victorian bushfires.
“HIA is disappointed that the Victorian government has announced new proposals to further increase property taxes,” stated HIA Executive Director Victoria, Keith Ryan.
HIA says residential builders and trades remain cautious about hiring in 2026. Not due to a lack of housing demand, but because of mounting cost pressures, regulatory hurdles, and persistent skills shortages, according to a survey of small to medium enterprise members.
Workplace laws are set for more changes in 2026.