Reforms to building approvals process and registration of building practitioners in Western Australia

The Centre for International Economics conducted a cost-benefit analysis of proposed reforms to Western Australia's building approvals process and registration requirements for builders. The purpose was to estimate the scale of problems from building defects, assess the costs and benefits of implementing the comprehensive reform package, including expanded inspections, documentation and registration, and determine whether the reforms represent a net economic benefit to society. Through economic modelling and industry surveying, the analysis aimed to inform decision makers by evaluating the overall value proposition of pursuing the regulatory changes.

The proposed building reforms in Western Australia are estimated to provide a net economic benefit to society of $453 million over 10 years by reducing building defects. With a benefit-cost ratio of 1.43, the reforms are a sound investment expected to cut rectification costs and associated problems for households and businesses by around half.

Link to the WA DEMIRS Building industry reforms website

LINK TO CIE REPORT