Builders plead for help amid cost crisis
South Australian builders are pleading for help from the Labor State Government, as global instability drives up construction costs and fuels the state’s housing crisis.
Gary Holland, Director at Daruma Constructions, is among those raising the alarm about the rising cost of materials and the impact it’s already having on the price of building a home.
“I’ve received an email from a plumbing contractor to say that the cost of PVC pipe has risen 30% and that this cost will need to be passed on,” Mr Holland said.
“Unfortunately, that’s just the start – basically any material that is being delivered to our building sites now comes with a fuel surcharge.
“If you’re a South Australian looking to build a modest family home right now, then you should expect to pay at least $30,000 more than you would have a few months ago.”
State Liberal Leader Ashton Hurn said the increases could deter people from building homes at a time when the state is already falling short of its construction targets set under the National Housing Accord.
“South Australia desperately needs more homes built, and we need them built now,” Mrs Hurn said.
“Builders are being squeezed by rising material and freight costs, at a time when margins are already tight – and ultimately it’s passed on to the client wanting to build their dream home.”
Shadow Minister for Housing Josh Teague said there are simple steps the government can take to ensure builders – and their clients – are protected from enormous price hikes and the threat of business closures.
“First, the State Government should work closely with the Australian Competition and Consumer Commission (ACCC) to ensure transparency around pricing,” Mr Teague said.
“It’s important that any increases across the supply chain are fair and clearly justified.”
Mrs Hurn also called for payroll tax on apprentices and trainees to be scrapped in June’s State Budget.
“This is a practical step that would help businesses keep apprentices employed and maintain the pipeline of skilled workers,” she said.
South Australian builders are pleading for help from the Labor State Government, as global instability drives up construction costs and fuels the state’s housing crisis.
Gary Holland, Director at Daruma Constructions, is among those raising the alarm about the rising cost of materials and the impact it’s already having on the price of building a home.
“I’ve received an email from a plumbing contractor to say that the cost of PVC pipe has risen 30% and that this cost will need to be passed on,” Mr Holland said.
“Unfortunately, that’s just the start – basically any material that is being delivered to our building sites now comes with a fuel surcharge.
“If you’re a South Australian looking to build a modest family home right now, then you should expect to pay at least $30,000 more than you would have a few months ago.”
State Liberal Leader Ashton Hurn said the increases could deter people from building homes at a time when the state is already falling short of its construction targets set under the National Housing Accord.
“South Australia desperately needs more homes built, and we need them built now,” Mrs Hurn said.
“Builders are being squeezed by rising material and freight costs, at a time when margins are already tight – and ultimately it’s passed on to the client wanting to build their dream home.”
Shadow Minister for Housing Josh Teague said there are simple steps the government can take to ensure builders – and their clients – are protected from enormous price hikes and the threat of business closures.
“First, the State Government should work closely with the Australian Competition and Consumer Commission (ACCC) to ensure transparency around pricing,” Mr Teague said.
“It’s important that any increases across the supply chain are fair and clearly justified.”
Mrs Hurn also called for payroll tax on apprentices and trainees to be scrapped in June’s State Budget.
“This is a practical step that would help businesses keep apprentices employed and maintain the pipeline of skilled workers,” she said.
South Australia desperately needs more homes built, and we need them built now.
