Victorian Housing and Construction Industry Calls for Immediate Halt to Quarry Fee Hike Threatening State’s Housing Supply

The Urban Development Institute of Australia Victoria (UDIA), the Housing Industry Association (HIA), Master Builders Victoria, the Property Council of Australia and the Civil Contractors Federation (CCF) have united to urge the Victorian Government to withdraw proposed increases to minerals and extractive industry fees that would significantly raise construction costs and place further pressure on the state’s already strained housing supply.
The industry groups agree with the Cement Concrete and Aggregates Association (CCAA) that the proposed fee increases — which are 253 per cent higher on average than current rates — would substantially increase costs for essential construction materials such as sand, rock and gravel. These costs flow directly through to housing delivery at a time when Victoria is already struggling to meet its housing targets.
UDIA CEO Linda Allison said that additional costs will further jeopardise Victoria’s housing targets. “The Victorian Government wants 80,000 new homes a year, but at every turn, industry hits another roadblock at the hands of the Government. These fee hikes are another cost pressure that undermines affordability, reduces project viability and slows the delivery of new housing across the state,” she said.
HIA Executive Director Keith Ryan says that the Government has not demonstrated a clear policy rationale for the fee hike, nor provided evidence that current arrangements are failing or that higher fees will improve regulatory outcomes.
“There is no justification for such exorbitant fee increases, particularly at a time when industry is already under pressure,” he said.
Small and medium-sized builders who are responsible for the majority of new home construction are expected to be disproportionately affected, as they have limited capacity to absorb sudden increases in material costs.
The five organisations are calling for genuine consultation with industry before any changes proceed, including a transparent assessment of cost impacts, supply chain risks and the broader consequences for housing affordability.

Property Council Executive Director Cath Evans said that the dramatic fee changes bring into question the Carroll Government’s commitment to work more closely with the business community.
“Whether it’s Work from Home legislation or exorbitant and unexpected increases in taxes and charges like this one, it only further confirms Victoria’s unfortunate but growing reputation as the least appealing state to do business in,” she said.

Master Builders Victoria CEO Michaela Lihou said that increasing quarry fees will hit housing affordability.
“Quarries are the foundation of Victoria’s construction sector. Imposing additional costs on builders, who are already buckling under the weight of red tape and rising material costs, will have a ripple effect throughout the economy, increasing the cost of housing, major infrastructure and community projects,” she said.
Civil Contractors Federation Victoria (CCF) Executive Director Annie Kessell said, “Quarries underpin Victoria’s construction and infrastructure pipeline; supplying essential materials that our state relies on. Increasing fees on these operations will flow through the supply chain, increasing construction costs and placing further pressure on delivery and affordability.”
UDIA Victoria, HIA, Master Builders Victoria, the Property Council and CCF stand ready to engage constructively with the Government and CCAA to ensure any future changes are evidence-based, proportionate and aligned with Victoria’s housing and economic priorities.

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