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“HIA welcomes these latest announcements which will provide more clarity about activity centres, a new townhouse code, and specific housing targets for local governments.
“Together these reforms will encourage more variety in housing choices and follows HIA long term advocacy to boost housing supply and increase housing choices.
“Many consumers prefer a detached home or at least a duplex, townhouse or low-rise apartment. Builders regularly get this feedback from consumers and their purchasing decisions reflect this preference as well. These lower density homes can be built more quickly and will be more affordable. They are also capable of being built in locations closer to family, friends, and workplaces.
“The Townhouse and Low-Rise Code announcement today is particularly important to fast track delivery of this missing middle type housing. If a lower density housing project can meet the standards it does not make sense to have a planning permit subject to a third party review.
“There is still more work to be done by the government to encourage more small secondary dwellings and a continued need for dependent person units (DPUs). Reforms to encourage second homes on a lot and easier subdivisions into two lots are also eagerly awaited.
“Further reforms are also needed across tax settings and infrastructure contributions, and long overdue contract law and insurance reforms.
“These planning reforms announced are an important step towards boosting housing supply and in turn providing a better business environment for the home building industry in Victoria,” 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.