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“HIA has worked with the Government to ensure long-standing contracting arrangements in the residential building industry are preserved. With 80 per cent of the workforce in the sector based on independent contracting, HIA were intent on ensuring the Bill maintained a person’s right to work for themselves,” said Jocelyn Martin, HIA Managing Director.
“HIA raised concerns with the new definition of employment, specifically how that would impact independent contracting arrangements in the residential building industry. The measures as passed provide some comfort that the status quo for independent contractors can be maintained.
“During our consultation with the Government, the Minister committed to giving HIA the opportunity to work directly with the Fair Work Ombudsman to develop industry specific information and advice to support the industry navigate these reforms.
“The residential building industry is just starting to turn a corner after the impacts of the COVID-19 pandemic begin to dissipate, now is not the time for further disruption via complex regulatory changes that simply add a layer of uncertainty and risk.
“Measures that also passed through Parliament that will empower the Fair Work Commission to deal with business-to-business arrangements and excessive increases in penalties remain of concern and will simply act as a disincentive to run a business and employ staff.
“HIA stands by the Government’s commitment to build 1.2 million homes over the next 5 years, but we need a flexible, and buoyant housing industry coupled with policy settings that make employing attractive. Complex and cumbersome change will only serve to do the opposite,” concluded Ms Martin.
“The HIA Trades Availability Index recorded -0.47 in the December Quarter 2024, representing only a modest improvement in the availability of skilled trades in the second half of last year,” stated HIA Senior Economist Tom Devitt.
“Long-standing constraints on new home building in NSW, particularly land supply and planning system inefficiencies, are locking more and more first home buyers out of home ownership,” stated HIA Executive Director, NSW, Brad Armitage.
HIA has welcomed the Tasmanian Government’s announcement of a Density Incentive Grant Scheme for medium and high-density housing developments.
“Restrictions on lending have been progressively tightened over the past 15 years making it increasingly difficult for banks to lend to first home buyers. Despite this increase in lending restrictions and the cost of lending, mortgage delinquency in Australia remains exceptionally close to zero,” stated HIA Economist, Maurice Tapang.