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Builder levy rise hits new homes

Builder levy rise hits new homes

Building a new house or renovating will become more expensive under a State Government levy rise that amounts to a "cash grab", the building industry says.

Industry bodies warned yesterday that a 52 per cent increase in the building services levy would be passed on to customers and add to WA's housing affordability problem.

But the Government said the levy increase would be less than $100 in most cases and homeowners would benefit from more transparency and faster access to information under the reforms to be funded by the higher levy.

They include electronic lodgement and processing of building approval applications and plumbing notices.

From July 1, the levy, which is paid by builders and funds the Building Commission, will increase from 0.09 per cent of the cost of the work being done to 0.137 per cent. For a $350,000 house, the levy would increase the price by $165. Commerce Minister Michael Mischin said the changes would cut the time to process applications, reduce red tape and boost productivity.

"Consumers and owners can monitor progress, check what has been approved, search builder turnover and times for completion," he said. "Builders can quickly check codes, building information, approvals on site."

HIA executive director John Gelavis said the levy rise was "well above" the rate of inflation and a further blow on top of other costs such as the landfill levy.

Master Builders WA director of housing Geoff Cooper said without wider planning reforms, the changes would not help people wanting to build a new home.

"If the WA Government is taking more money from homebuyers, it is going to need to use it wisely to tackle planning delays and land supply restraints," he said.

Builder Dale Alcock said the levy increase was a "blatant cash grab". "Homebuyers shouldn't be hit with higher building costs under the guise of a solution to WA's inadequate building approval process," he said.