Builders: Budget tinkers at the edges but misses crucial measures to ease construction cost pressures

25 March 2025

Tonight, the building and construction industry was seeking a Budget that supports the very businesses who have the opportunity to boost economic growth, bring down inflation and build for all Australians, said Master Builders AustraliaCEO Denita Wawn.

“The Federal Government has made a range of sensible, modest measures that look to make inroads in tackling keychallenges around labour shortages, infrastructure, and modern methods of construction.

“Unfortunately, the very businesses who are expected to solve the housing crisis have been left disappointed thisevening with minimal support to bring down business costs, incentivise growth, and reduce regulatory barriers.

“A $150 energy bill deduction is welcome but falls short of much-needed support for the 440,000+ small businesses in the building and construction industry.

“We have heard from the Government in recent weeks that the economy is at its best when it’s powered by business, but the Budget missed the opportunity to make that a reality.

“We are not going to solve the housing crisis and meet the Housing Accord target without bold reform to reverse construction cost, time and productivity trends,” Ms Wawn said.

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.

“Overall, the Budget has seen some welcome measures to support new entrants but very little for the businesses who employ them and are struggling to keep their doors open.

“With cost of living being felt by millions, businesses continue to be ignored and left in the lurch. How many more businesses need to stare down the barrel of insolvency before something is done?”

RESPONSES TO SPECIFIC POLICY AREAS

Industrial relations

“We have all seen the stories around corrupt, unlawful and violent behaviour in the industry recently but the Budget missed an opportunity to put in place the adequate resources to support law enforcers and regulators.

“When the ABCC was abolished, the industry was reassured by the Federal Government that the Fair Work Ombudsman would be given the resources and support it needed to uphold workplace laws, but we have not seen that happen.

“Master Builders Australia calls on the Federal Government to introduce an industry-specific regulator with real teeth to clean up increasing disruption and unlawful behaviour on construction sites which ultimately blows out construction costs and timeframes.

“The industrial relations landscape continues to hold the industry back and stops thousands of new homes from getting built.

“Changes to industrial relations laws under this Government will see at least 15,000 fewer homes, almost 8,000 fewerjobs and cost the economy over $113 billion over the next five years,” Ms Wawn said.

Infrastructure

“In some good news, increased funding for infrastructure to support new home building reinforces the important roleof commercial and civil construction in building sustainable communities,” Ms Wawn said.

Skills

“Master Builders welcomes previously announced funding to encourage more people to pick up the tools but without employer incentives, the program risks not achieving its full potential,” Ms Wawn said.

Master Builders welcomes a series of measures announced this evening, including: 

• $10,000 Key Apprentices Program incentive for a select range of residential trade roles;
• $54 million to speed up advanced manufacturing of prefabricated and modular home construction;
• Expanding Help to Buy eligibility;
• A national licensing scheme for electrical trades;
• Extension of energy bill relief for small businesses;
• $1 billion investment to protect the corridor for the South West Sydney Rail Extension;
• Funding to support construction of Olympic Games infrastructure.

Media contact:
Dee Zegarac | National Director, Media & Public Affairs
0400 493 071 | dee.zegarac@masterbuilders.com.au