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New Fuel Efficiency Standards Threaten Housing Supply And Affordability, Housing Industry Warns

In a recent statement, the Housing Industry Association (HIA) raised concerns about the potential repercussions of new fuel efficiency standards on Australia’s housing supply and affordability. 

The association revealed that these standards could drive up costs of tradies, affecting the availability and cost of housing across the country. 

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HIA’s industry and policy chief executive, Simon Croft, said the new law would add significant upfront costs and likely result in car manufacturers needing to scale back the key types of vehicles, such as utes, 4WDs, and other light commercial vehicles. 

“Over the past three years, the building industry has faced significant construction price increases…as well as a range of changes to building, work health and safety, taxation and business compliance costs,” Mr Croft said.

He said that these elevated expenses, coupled with existing cost pressures, could hinder the government’s ambitious target of constructing 1.2 million homes over the next five years.

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“Any further added costs, complexities or regulatory impediments…at this time will only make their job harder and have downstream impacts on housing supply and affordability,” he said.

He worried that the absence of viable alternatives to these vehicles may exacerbate the situation, further complicating the operations of businesses within the construction sector.

The Federal Chamber of Automotive Industries echoed these concerns, releasing modelling illustrating potential price increases of up to $25,000 for popular utes and SUVs under Labor’s policy. 

Despite the far-reaching implications of these standards, Croft pointed out the lack of direct consultation with the building industry regarding their implementation. 

He has urged the federal government to engage with the sector to address concerns and ensure that any regulatory changes align to boost housing supply.

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