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Opposing Labor's IR reforms for exacerbating housing crisis

Published July 30, 2026 at 6:02 AM UTC

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Critics argue that Labor's industrial relations (IR) reforms, while well-intentioned, may inadvertently exacerbate Australia's housing crisis. The Housing Industry Association (HIA) has highlighted that the current IR framework increases operational costs and reduces flexibility, deterring small businesses from hiring and expanding. These challenges are compounded by a shortage of trade apprenticeships, with completions down 8.6% and commencements down 11.8%, further straining the construction sector. The Liberal Party has criticized the government's handling of the housing crisis, pointing to the decline in building activity and the unmet housing targets. They argue that the current IR laws are a significant impediment to addressing the housing shortage effectively. As the situation unfolds, stakeholders are calling for a reassessment of IR policies to balance worker protections with the need to stimulate housing construction. The government's response to these concerns will be pivotal in determining the trajectory of Australia's housing crisis.