Building levy increase of 50% to hit affordability

Today’s increase in the building levy from 0.09% to 0.137% will impact on the cost of construction of a new home in WA.

The levy applies to the value of work which is subject to a building permit or demolition permit valued over $45,000.

Master Builders Director of Housing, Mr Geoff Cooper, said the levy would increase the price of a $350,000 home by $165.

“The 50% increase in the building levy will be another government impost on home buyers in WA,” Mr Cooper said.

“If the WA Government is taking more money from home buyers, it is going to need to use it wisely to tackle planning delays and land supply restraints.”

"We want to ensure that the government doesn't make it harder for young Western Australians to afford a new home.”

“We urgently need the government to deliver reforms to outdated R-Codes in our state and to speed up the slow turning processes of local governments that ultimately push up housing costs.”

“If we don’t see these planning reforms implemented by 1 July as previously promised, this levy increase will not help people wanting to build a new home in our state.”

The increase is in addition to waste levy increases of 500%, plus land tax and stamp duty revenue increases in the last budget.

"It is vital that the government restrain from further punitive tax increases in the upcoming budget that could push home ownership aspirations further out of reach of our next generation in WA."

The increase in levy is designed to fund a range of operational projects which have the potential to benefit the building industry and home buyers. These projects include:

  • Extending the registration of builders to the whole of WA
  • Reforming the estate’s housing indemnity insurance regime
  • Introducing an electronic lodgement process for building permits
  • Free access to the National Construction Code.”  

“What’s needed within each of these initiatives is a transparent budget and accountable time frames to achieve their objectives,” Mr Cooper concluded.