Government Announces Building Law Reforms

These changes include:

• Improving building consent processes for prefabrication and off-site manufacturing;
• Increasing the transparency of building product information;
• Strengthening CodeMark product certification;
• Reducing the building levy from $2.01 to $1.75 (including GST) per $1,000 of consent building work above $20,444; and
• Increasing penalties for offences against the Building, including setting higher penalties for companies (rather than individuals)

When the Government was consulting on the above changes in June, we submitted on the proposals. Generally we welcomed the Government’s proposals, with the exception of the reduction to the building levy. We disagreed the levy should be reduced, as we considered there are numerous opportunities for greater Government investment in the building system to support improved building performance. We note that MBIE was originally proposing to decrease the levy to $1.25 but have confirmed $1.75 (including GST) per $1,000. We look forward to what MBIE will do with the building levy income going forward.

With the exception of changes to the building levy (which will be confirmed before the end of 2019), all the changes above require amendments to the Building Act. MBIE expect these changes will be introduced to Parliament in the first half of 2020. There will be further opportunity to provide feedback through select committee processes before the changes come into effect (anytime from mid-2020 onwards).

For further information, please refer to the Ministry of Business, Innovation & Employment (MBIE)’s website.