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{{propApi.successMessage}} {{region}} Change locationHousing industry welcomes focus on red tape reduction
Housing industry welcomes focus on red tape reduction
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“No where else in the economy is feeling the productivity drain of excessive and poorly considered regulation quite like the residential construction industry,” said Simon Croft, Chief Executive Industry & Policy.
“At a time when the nation desperately needs more homes, the industry is being constrained by red tape across all tiers of government.
“In acknowledging decades of falling productivity in the construction sector, the Productivity Commission recently called out the complicated and slow approval processes for building, the volume of regulation, barriers to uptake of innovation including modern methods of construction and inconsistent licensing regimes.
“A recent survey of HIA’s small business members revealed that 56% of respondents has either taken on new staff or redeployed existing staff, to deal with administrative or regulatory tasks over the past twelve months.
“These are all resources that should be applied to actual construction work, rather than paperwork.
“HIA has raised concerns about the burden of regulation on the industry in a recent Federal Pre-Budget Submission, and posed solutions to increase productivity and efficiency in building, including:
- Greater recognition of the disproportionate impact of many regulations on small business and applying exemptions accordingly when introduced.
- Changing the frequency of amendments to the National Construction Code (NCC) to every five years, to increase certainty and reduce the burden on builders.
- Removing the paywall for critical Australian Standards, that effectively charges builders to access the rules they need to follow.
- Simplifying planning systems, including encouraging more use of fast-tracked complying development pathways for less complex projects, and also trial the use private certification for the same.
- Reforming codes, planning systems and finance models to encourage the uptake of innovative construction techniques.
“Demand for new housing is strong, but rising costs, skills shortages, complex regulations, and planning delays are making it increasingly difficult for builders to keep up, which threatens the ambitious housing target agreed by national cabinet of 1.2 million homes by 2029.
“We welcome the chance to talk to all decision makers in Canberra about the challenges being faced by the industry, and look forward to contributing further to the discussion,” concluded Mr Croft.
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