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In its submission to the Productivity Commission’s productivity reform consultation, Master Builders is calling on the Federal Government to back sensible policies to unlock productivity, boost housing supply and ease cost pressures across industry.
Productivity in the building and construction industry has fallen 18 per cent over the past decade, even as the cost of building a home has jumped by over 40 per cent. Urgent action is needed to reverse this decline.
This is not about cutting corners or doing more with less. It is about working smarter, eliminating waste, streamlining processes, and empowering the industry to deliver higher quality outcomes more efficiently and sustainably.
The delivery of new homes and the broader built environment is being increasingly hampered by a mix of compounding pressures.
Builders are grappling with ongoing supply chain disruptions, rising material costs, and fixed-price contracts that no longer reflect market realities.
Profit margins have all but disappeared, labour shortages are delaying projects, and recent workplace relations changes are restricting flexibility on site.
High inflation, elevated interest rates, and growing layers of regulation, particularly burdensome for small businesses, are further stifling progress.
Weak enforcement of existing rules has also created space for bad actors, adding to the challenges facing the industry.
The Federal Government has indicated an appetite to pursue reform to lift productivity, but it must go beyond tinkering at the edges.
Master Builders encourages the Government to work hand-in-hand with industry on bold, practical reforms that will make a real difference.
Key recommendations:
- A full review of the National Construction Code, including better alignment and reduced reliance on performance solutions.
- Free access to all regulated building standards, removing paywalls on legal obligations and supporting small businesses with compliance.
- Bold tax reform, including changes to company tax, review of land and construction taxes and charges across state and federal jurisdictions, and incentives for businesses who do the right thing.
- Workplace relations reform via competition law, including removal of industrial exemptions and stronger powers to tackle anti-competitive conduct.
- Faster planning approvals and build-ready land through coordinated state-federal reform, supported by Minister Clare O’Neil’s national planning reform blueprint.
- Stronger digital uptake support.
Quotes attributable to Master Builders Australia CEO Denita Wawn:
“Australia’s productivity challenge begins with the built environment and so does the solution.
“Our industry is under intense pressure, from broken planning systems to skills shortages, red tape, and regulatory creep.
“It’s not governments that build homes, it’s private businesses. What we need is for them to clear the path so we can get on with the job.
“Boosting productivity is essential to building a better, safer and fairer building and construction industry.
“Productivity reform allows the industry to deliver quality outcomes more efficiently, reduce cost pressures, lift safety standards and ensure businesses of all sizes can thrive and compete on a level playing field.”
Media contact: Dee Zegarac, National Director, External Affairs & Engagement
0400 493 071 | dee.zegarac@masterbuilders.com.au