Legislation to reduce construction industry red tape applauded by Master Builders

Master Builders have welcomed the new legislation introduced in Parliament this week looking to repeal red tape, applauding it as an important signal of support for an industry dealing with over regulation and associated compliance costs.

CEO of Master Builders Australia, Wilhelm Harrisch, said that this should be just the start of other changes to come, saying that “Red Tape Repeal Day” needs to be backed up.

“Red tape may sound mundane until you connect it with business people spending hours grappling with excessive paperwork instead of directing their energies to the productivity of their businesses and creating new jobs,” said Harrisch.

“Building and construction is one of Australia's most intensely regulated industries and the nation's third largest employer. Cutting red tape will boost the productivity of the industry allowing it to generate more jobs and provide better value to consumers,” he said.

A report for the Australian Building Codes Board found that the simplification of national regulation covering the building industry would benefit the economy by $300 million a year.

“We will continue to champion regulation review and reform of the national building standards National Construction Code, and of the work of Standards Australia, both of which have large regulatory footprints on the building and construction industry,” he said.

The reforms are also being pushed to help tackle the undersupply of housing and housing affordability, as well as to accelerate projects in the commercial sector.

Some of the inefficient regulations being changed include the requirement to register with the Commonwealth any construction equipment hired for more than 90 days. Another mentioned was the requirement for contractors to report to the ATO for each transaction they have with another contractor, which he claimed was a measure that penalised the masses to catch the few breaking the law.

“New regulation should only ever be considered following a rigorous assessment about whether it is needed in the first place including a requirement to closely consult with business. Where a need is established there needs to be a greater discipline and rigour in the Regulatory Impact Statements,” he said.