Give the Building Industry a Break

Give the Building Industry a Break

We need a break from more changes to the building regulations; and less taxes

After many years, the National Construction Code (NCC) 2022 changes were fully implemented in Victoria on 1 May 2024.  It now looks like potential homeowners will need to find at least an extra $10,000, and often a lot more, to have a house built.

More Changes to Building Regulations

On the same day, the Australian Building Codes Board (ABCB) released for consultation its proposed NCC 2025 changes. There is no answer yet on when these changes will actually take effect, but it is unlikely to be in 2025.  More details about these proposals can be found on the Australian Building Codes Board at The NCC Public Comment Draft | ABCB.

What will these changes involve?

While the NCC 2025 changes are more applicable to commercial builds, apartments and townhouses, they also impact detached homes and other residential buildings.  For example, among the proposed changes are further condensation management provisions and additional energy efficiency changes, including the provision of additional switchboard capacity, electric vehicle charging circuits and pre-provisioning equipment. So, more changes are coming for an industry already suffering regulatory fatigue.

No Changes to Taxes

The Victorian government recently released its budget for the coming financial year.  There was little positive commentary about it.  However, one sensible outcome was the government not changing the tax settings for business, and particularly the home building industry, by increasing taxes or introducing new taxes. They have done no more harm and while the current tax settings are discouraging investment in Victoria, at least the situation is not getting worse.

We want to see the decision by the Victorian government not to increase taxes followed in other areas. Building regulations have changed a lot in recent years and it would be very helpful for the government to slow down if not halt these changes for a few years. Builders and trades have had a lot of adjustments to make and have spent a lot of time and money preparing. Consumers also need a break, as each change only adds to the cost of housing. Arguably the benefits from further regulation changes are also shrinking as fast as consumers financial capacity to get a home built or renovated.  So, rushing everyone through this pain is becoming increasingly pointless.

It would be beneficial for the industry if governments decided to cut taxes and put building regulation changes on hold for a while.  After all, at least 40 per cent of the cost of a new home now comes from government taxes and charges and cutting them to reduce this burden would help people get into their own home.

HIA members can contact the HIA on 1300 650 620 to get more information or guidance on these matters. For more information on the National Construction Code and the latest changes, explore the information on our blog.