Under the previous government housing starts fell to record 50-year lows, putting pressure on house prices, Fair Trading Minister Anthony Roberts claimed.
He has announced reforms to the Home Building Act 1989.
In July last year the government released an Issues Paper Reform of the Home Building Act for consultation and more than 600 responses were received.
"There has been 15 months of consultation with the community, key building and industry representatives to help deliver a world-class system," Mr Roberts said.
"The proposed reforms cover various aspects of the home-building legislation — dispute resolution, statutory warranties, home building contracts, owner-builder's obligations, home warranty insurance and licensing."
The reforms will:
- ensure the level of regulation of home building contracts is equal to the associated risks;
- provide greater clarity about the rights and obligations that flow from the statutory warranty provisions and change the focus of what constitutes a defect requiring a greater warranty period;
- encourage timely and efficient resolution of home building disputes;
- ensure owner-builder permits are not used to circumvent licensing requirements and manage health and safety risks associated with owner-builder work and
- help keep phoenix companies and other poor performing builders out of the industry.
Housing Industry Association executive director David Bare said clear attempts are being made by the government to reduce disputation.
Master Builder's Association executive director Brian Seidler, said the reforms provide a common-sense approach and sound foundation to improve the industry.
"Lifting the general works contract threshold from $5000 to $20,000 will remove the unnecessary red tape for small jobs," he said.
Riverstone MP Kevin Conolly said: "Protecting home owners as they renovate, build or buy their homes ensures the great Australian Dream while also setting clear ground rules for builders."