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“There are many existing blocks of land across Victoria that can be subdivided or have a second home, or two new homes built on.
“This policy is something HIA has long called for and it has the potential to deliver thousands of new homes quickly and inexpensively.
“These homes can be built near existing homes, jobs and families. They would allow for a moderate and gradual increase in housing density without unnecessary or excessive disruptions.
”Today’s announcement is an important boost to housing supply and fast track dual occupancy style housing which is an essential missing middle in the housing mix,” concluded Mr Ryan.
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.