MBA doubts inquiry

THE Federal Government’s Housing Affordability Inquiry has not taken into account the major cause of higher building costs in Western Australia, according to Masters Builders Association of WA housing director Gavan Forster.

Mr Forster said there had been too much focus on increases in stamp duty, which only applied to the land component of new home packages.

“The debate so far has ignored the primary cause of rising building costs – home indemnity insurance premiums,” he said.

Over the past two years, indemnity insurance premiums had trebled for some builders, whereas WA stamp duties had risen by 30 per cent, Mr Forster said.