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“HIA has been calling for this measure for a number of years, so we welcome today’s announcement,” said Greg Weller, HIA Executive Director ACT/Southern NSW.
“Blocks over 800 square metres will be allowed to be build a secondary dwelling up to 120 square metres plus a garage, which can then be unit titled. This will assist in potentially bringing more homes to the market in Canberra, which are desperately needed.
“While the change is a positive one, it is disappointing that the secondary dwelling has been limited to a relatively small home. This seems at odds with the overall design of the new planning system, which is promoted as being outcome-focused rather than prescriptive.
“It would also have been preferable for the blocks size to be set at 700 square metres, as it was for the former Mr Fluffy blocks.
“Changes to RZ2 that allow for additional dwelling types and a relaxation on the sale of blocks that have been subdivided without development are also welcome.
“The release of the final documents will allow industry to finally have all the detail to start preparing for the new system when it comes in later this year. Before that however, we expect the Legislative Assembly will also spend some time reviewing it and we look forward to contributing to that process.
“We also welcome the focus from the ACT Government on managing this transition, with a number of education options also announced, along with a dedicated information hotline,” concluded Mr Weller.
The HIA 2026 Small Business Conditions survey shows that while small builders remain resilient, they are facing significant challenges heading into 2026.
The Housing Industry Association (HIA) has reaffirmed its support for the Tasmanian Government’s 2025 decision to expand Greater Hobart’s Urban Growth Boundary (UGB), noting that recent commentary underscores the scale of Tasmania’s housing challenge and the urgent need to bring more land forward for new homes.
Australia’s small businesses are warning that housing supply will continue to fall short of targets unless all tiers of government urgently address rising regulatory costs, planning delays and workforce shortages, according to the Housing Industry Association (HIA) 2026 Small Business Conditions Report.
The Housing Industry Association (HIA) has called on the Federal Government to use the 2026–27 Budget as reset on housing policy, warning Australia’s housing shortage is now a structural economic challenge.