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Labor’s IR laws making housing crisis harder to solve

Published July 29, 2026 at 6:02 AM UTC

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Australia's housing crisis is deepening, with new data showing a significant shortfall in the construction of homes needed to meet demand. Industry experts point to recent changes in industrial relations laws as a contributing factor to this slowdown. The Housing Industry Association (HIA) has raised concerns that the current workplace laws are imposing additional costs and complexities on builders, potentially deterring them from taking on new projects. HIA's Senior Executive Director, Stuart Collins, stated that the residential building sector's productivity issues are directly linked to a workplace relations system that drives up compliance costs and fuels dispute risks. These challenges are particularly pressing given the government's ambitious housing targets, which now appear increasingly difficult to achieve. The HIA has called for targeted reforms, including a presumption of independent contractor status for licensed residential trade contractors and a sector-specific employment standards framework. As the debate continues, the question remains: can the government balance the need for fair labor practices with the urgency of addressing the housing shortage?