Budget Reply recognises important role of business in solving housing crisis

Peak building and construction industry association Master Builders Australia has this evening applauded the Coalition’s recognition and support for employers in tackling the housing crisis.

Over the last decade, construction costs have increased by almost 60 per cent, residential build times by 48 per cent (homes) and 60 per cent (apartments), while productivity has declined by 18 per cent.

The building and construction industry is plagued by chronic and critical workforce shortages. Demand is far outpacing capacity to build.

A Coalition Government has committed to introducing a two-year wage subsidy of 10 per cent (up to $12,000) for small and medium-sized employers taking on apprentices and trainees whose occupations are on the Skills Priority List.

This is in addition to their matched commitment of a $10,000 payment to apprentices in residential construction.

Master Builders has long advocated for incentives to employers to offset the significant costs associated with employing and training apprentices, and we thank the Coalition for listening to our concerns.

Other measures committed to this evening that will help ease construction cost pressures and restore integrity to the industry include:

• Halving the fuel excise to 25.4c per litre of fuel for one year;
• $30,000 instant asset write-off on an ongoing basis;
• $5 billion fund for critical infrastructure to unlock shovel-ready land;
• Changes to fringe benefits tax to include business-related meal and entertainment expenses;
• A review and removal of regulatory burdens where there is overlap with states;
• Install a building and construction industry watchdog; and
• Establish an AFP-led taskforce into criminal conductin the industry, involving AUSTRAC, ASIC, ATO and other financial service regulators.

Quotes attributable to Master Builders Australia CEO Denita Wawn:

“Without a thriving building and construction industry, we won’t be able to build more homes for Aussies.

“The Coalition has tabled a range of policies aimed at bringing down the cost of doing business which has skyrocketed over the last few years.

“We need to attract and retain our next generation of tradies, and Master Builders supports the Coalition’s sensible training pipeline and supporting incentives for both workers and their employers.

“Should the Housing Australia Future Fund be scrapped, Master Builders urges the Coalition to ensure that investment in the social and affordable housing market continues to be supported and build on innovative ways of funding this market through NHFIC and bond aggregators.

“It is clear the industrial relations system in building and construction is broken, and law enforcement is inadequately resourced to fix the corrupt, unlawful, and violent behaviour we have seen reported in recent months.

“While both the Government and Opposition have put forward some sensible housing measures, there is still a long way to go.

“This Federal Election, Master Builders will hold both major parties to account and advocate for policies that are focused on increasing supply and productivity while reducing construction costs and build times,” Ms Wawn concluded.

Media contact:

Dee Zegarac | National Director, Media & Public Affairs

0400 493 071 | dee.zegarac@masterbuilders.com.au