The housing industry is calling for the Federal Government to cut $12 billion in red tape costs which is making housing unaffordable.
It says reducing red tape costs by 25% could make the construction sector more productive.
In its budget submission, Master Builders Australia says the cut is critical if the government wants to meet its housing targets.
Master Builders chief executive Danita Wawn says to have any chance of meeting the National Housing Accord target, productivity needs to return to the level it was at ten years ago.
In 2025 the Australian Productivity Commission estimated that regulation added up to $320,000 to the cost of a new house and $175,000 to the cost of a new unit.
It says that for units, paperwork costs make up about 33% to 36% of the total regulatory cost.