Master Builders Australia has warned in its submission to the Australian Trade Remedies Commission’s (ATRC) investigation on aluminium windows and doors (AWD) that proposed tariffs on imported products from China will drive up the cost of building a home.
The warning comes as the ATRC’s investigation moves towards a final decision by the Minister for Industry.
The decision will be made against a backdrop of rising material costs, with the ABS reporting that the cost of building materials has increased by 43.7 per cent since 2019. During the same period, the cost of AWD products rose by 45.4 per cent.
Master Builders CEO Denita Wawn said the affected building materials could face cost increases of up to 75 per cent if the tariffs proceed.
“We are talking about cost increases worth tens of thousands, and in some cases hundreds of thousands or millions of dollars, on construction projects across Australia, depending on their size.
“The impact is two-fold. On one hand, builders operating under fixed-price contracts will be unable to pass these costs on, leaving them to absorb the hit themselves or face difficult decisions about whether projects remain viable.
“On the other, future projects will also be affected. As we’ve seen in the United States, tariffs flow through to the customer. Mums and Dads building a home pay the price.
“Domestic manufacturing is better supported through policies that don’t push up the cost of materials, but tackle local input costs, including energy prices, transport costs, regulation and taxes.
Master Builders has told the Commission that AWD specifications are often decided early in the design process and cannot simply be swapped for another product without redesign, new compliance assessments, delays and additional costs.
“Window types are often locked in during the design stage and become embedded in a building’s architectural, engineering and façade. Changing products halfway through a project is rarely a simple substitution. It can trigger redesigns, additional compliance work, delays and significant extra costs.
Master Builders Australia is calling on the Federal Government not to impose these tariffs. At a minimum, any measures should exempt residential apartment projects (Class 2), where demand for high-performance aluminium window and door systems more often exceeds available domestic supply.
“If these tariffs proceed, builders delivering apartments and other high-density housing projects risk facing higher costs, project delays and reduced feasibility at a time when Australia is already struggling to build the homes it needs. This also includes Government funded social and affordable housing projects being delivered through the HAFF.”
Media contact: Dylan Hafey, Adviser, Media & Government Relations
0497 330 064 | [email protected]
