With the Federal election now over and interest rates having been cut again this week, it is hoped that consumers will now start considering having a new home built or their home renovated. With build times improving and cost increases moderating it is possible for consumers to get a good deal at the moment. Conditions may not be so consumer friendly as the year progresses.

The Victorian government budget this year was a disappointment with the government seemingly more concerned about the symptoms of economic mismanagement than addressing the causes. Any chance of meaningful tax reforms seems unlikely for the foreseeable future. Consumers wanting a new house built will have to continue paying at least 43 per cent of the cost of their build to the Victorian government.

Interest rate cuts and certainty about the Federal government will restore some confidence as the year progress. However, the Victorian government is ultimately responsible for the major policy tools that influence the home building industry. Any failure in Victoria to reach housing targets must be the responsibility of the Victorian government. There are signs that planning and contract law reforms are heading in the right direction.

Unfortunately, the building legislation reform back before the Parliament next week will undo this good work and more. Consumer protection must be improved but it cannot be achieved by creating a dispute resolution system that purports to immediately resolve consumers' claims but leaves builders with no realistic hope of being paid for disputed bills. HIA will continue to challenge this flawed legislation even if it is passed next week.