{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationHIA warns of fresh housing cost rise without fuel excise extension
HIA warns of fresh housing cost rise without fuel excise extension
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
“Home builders are still absorbing the last wave of material price hikes into fixed-price contracts. They simply don’t have capacity to take another hit,” said HIA Managing Director Jocelyn Martin.
“Fuel excise relief has been critical in containing costs across the construction supply chain. Removing it now, while diesel prices remain elevated, will push costs higher again.”
HIA said the scheduled end of the relief would lift diesel costs by over 10 per cent, flowing directly into construction through transport, logistics and on-site activity.
“Fuel is a core input - from earthmoving equipment and freight to tradies moving between jobs. When fuel costs rise, everything rises,” Ms Martin said.
“Changes in fuel costs flow through to many parts of the home building process and contribute to the overall cost of delivering new housing.”
The warning comes as the industry faces a convergence of new pressures, including a 4.75 per cent lift in award wages, budget-driven housing tax changes, and more complex superannuation obligations from 1 July.
HIA said that policymakers should consider the effect of rising transport and logistics costs on housing delivery, particularly at a time when Australia is seeking to increase the volume of new homes being built.
“At a time when Australia needs 1.2 million new homes, the policy settings are moving in the wrong direction,” Ms Martin said.
“Treasury’s own modelling points to 35,000 fewer homes being built over the next decade directly due to the federal budget decisions.
“Government cannot afford to pile further costs onto an industry already under severe strain.”
While acknowledging longer-term infrastructure commitments in the federal budget, HIA said these would not ease immediate cost pressures or increase short to medium term supply.
“The industry needs relief now, not in a decade,” she said.
“A further three month extension of fuel excise relief is a practical, short-term measure that would help the industry absorb existing cost increases and avoid another price shock.
“Letting it lapse risks delivering another avoidable shock to builders, tradies and ultimately home buyers.
“While fuel costs represent only one component of overall construction costs, they remain an important consideration for businesses involved in the delivery of new housing and residential infrastructure.
“The industry will continue to assess the impact of changing fuel and transport costs on housing construction activity and supply," concluded Ms Martin.
For more information please contact:
Apartment surge sets the stage for missing middle era
“The strong pipeline of multi-unit dwelling approvals recorded during the second half of 2025 has begun to translate into construction activity,” said Geordan Murray, HIA Executive Director ACT & Southern NSW.
Top end apprentices helping build Australia's housing future
The Housing Industry Association (HIA) has welcomed Leader of the Opposition Angus Taylor and Shadow Minister for Skills and Training Senator Jacinta Nampijinpa Price to the HIA Skills Centre in Darwin this week to meet apprentices and discuss the workforce challenges confronting Australia's residential construction industry.
Approvals increase a welcome but further work needed on regulatory burdens
Tasmania's home building pipeline is filling up faster than it is emptying. Building approvals are well up over the past year, but the number of homes actually getting underway continues to lag.
Home building falls to almost 30 per cent below Government's target
“Australia needed to deliver an annual rate of 240,000 new homes to reach the 1.2 million new homes target, but in the 12 months to March, just 197,340 new homes commenced construction,” stated HIA Senior Economist, Tom Devitt.