In a move to address the rising costs of building in New Zealand, the government has recently introduced legislation aimed at improving access to a wider variety of quality building products from overseas. The Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill, announced by Building and Construction Minister Chris Penk, is set to inject competition into the market and provide Kiwis with more choice.
The legislation comes at a time when building costs have increased by more than 40% since 2019, and building productivity has remained stagnant since 1985. The government has acknowledged that it is around 50% more expensive to build a standalone home in New Zealand compared to Australia, which is unacceptable.
The new law aims to reduce red tape and make it easier to import high-quality building products, potentially driving down costs and increasing product variety. Existing suppliers will face increased competition, which could lead to more affordable prices and a greater selection of products for consumers.
Despite the changes, Building Consent Authorities will still be required to assess proposed work to ensure compliance with the Building Code. The government has emphasized that this is part of a comprehensive package of reforms designed to make building in New Zealand easier and more affordable.The reforms include streamlining building consent changes and exempting projects under $65,000 from the building levy.
The first reading of the Bill is scheduled for later this month, after which it will be referred to the select committee for further consideration.The introduction of this legislation comes as a welcome relief to many in the building industry who have been struggling with the high costs and limited options in the market. With increased competition and a wider variety of products available, it is hoped that building in New Zealand will become more accessible and affordable for all.
The recent legislative changes in New Zealand, particularly the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill, are poised to significantly benefit Kiwi business owners in the construction sector. By facilitating easier access to a wider variety of overseas building products, the government aims to increase competition, which is expected to drive down material costs and enhance product availability.
Projects under $65,000 will also be exempt from the building levy, easing financial pressures on small to medium-sized enterprises. The reforms will streamline the building consent process, enabling quicker approvals and adaptations. These changes will not only improve project delivery and customer satisfaction but also enhance the resilience of businesses against supply chain disruptions. Overall, the new legislation promises to alleviate financial burdens and foster a more competitive and innovative construction industry in New Zealand.