The Urban Development Institute of Australia (UDIA) has urged the Commonwealth Government to create reforms in order to address the crisis facing the building and construction industry.
UDIA National Executive Director, Connie Kirk, said risks around a collapse of the insurance market for building professionals and concerns around consumer confidence needed to be resolved.
“There is going to be a reckoning in the residential construction market without action on reforms needed to sustain confidence and activity across the supply chain,” Ms Kirk said.
“Building industry consultants are in danger of being stranded without full professional indemnity insurance – with building surveyors at the tip of the spear.
“We understand it is ultimately states and territories that have responsibility for legislating and regulatory building and construction standards.
“However, the prospect of a patchwork response is real, as we’ve seen an inconsistency across the states in the pace and scope of movement in response to the essential elements of the Shergold-Weir Report.
“The Morrison Government was re-elected with an agenda that gives hope to the housing industry – retention of negative gearing, reduced red tape, work to close the deposit gap and better housing market analysis.”
Ms Kirk said that matched with the prospect of sustained lower interest rates and more realistic loan serviceability requirements for the banks, the potential for an upswing in investments, jobs and new housing is real.
“We hope the Commonwealth appreciates those gains could be undermined by the challenges facing the building and construction industry.
“Playing a leadership role in resolving issues around the insurance market for building professionals and the need to drive outcomes that will restore consumer confidence in building standards makes sense.”