Housing supply set to fall as thousands of new home contracts face cancellation
HIA warns housing supply targets are at risk as thousands of new home contracts face cancellation. A ban on SMSFs building new homes is blamed for undermining the government's 1.2 million home target.
1.2 million homes targeted by the government, now at risk due to the SMSF new-build ban.
The ban on SMSFs building new homes undermines the governments' objective of building 1.2 million homes - Tim Reardon, HIA Chief Economist
Will the SMSF ban on new home builds hurt my chances of landing construction contracts?
Builders and related trades face fewer new home projects if SMSF-funded builds are blocked. Reduced contract volumes mean less work for carpenters, plumbers, and electricians.
Key takeaways
- The federal government's 1.2 million home target is under threat due to the SMSF new-build ban.
- Thousands of new home contracts could be cancelled as a direct result of the policy.
- HIA Chief Economist Tim Reardon says the ban works against housing affordability goals.
- Tradies reliant on new residential construction may see a drop in available work.
Related
Construction needs an effective enforcer not a paperwork obsession
The Housing Industry Association (HIA) warns that proposed national construction standards and new procurement rules miss the mark. It says the measures land hardest on home builders and argues for an effective enforcer rather than more paperwork.
Why it matters: Home builders and small residential contractors could face extra compliance paperwork and procurement requirements, adding admin time and cost to jobs without necessarily lifting building quality.
Potential Commonwealth Standards for the Construction Industry
The Housing Industry Association (HIA) says it backs a lawful, safe, productive and sustainable construction industry and has long called for structural reform. It says the consultation on potential Commonwealth standards proposes several measures it is concerned about.
Why it matters: Commonwealth standards could add new compliance requirements for builders and subcontractors across residential construction. The article gives no detail yet, so the practical impact on trades is unclear.
Secure Australian Jobs Framework
The article argues that residential building and its supply chains should be exempt from the Secure Australian Jobs Framework and any related procurement obligations. It says government effort should go towards improving productivity instead.
Why it matters: Builders and the trades working in residential construction could avoid extra procurement obligations and compliance work if the exemption is granted. Otherwise, supply chain and tendering requirements may change.