Builders: New funding for housing infrastructure welcome, but budget must go further

9 May 2026

Master Builders Australia welcomes the Federal Government’s announcement of an additional $2 billion over four years to fund critical housing‑enabling infrastructure. This follows the announcement that the Instant Asset Write‑Off for small businesses will be made permanent.

Master Builders has persistently advocated for these measures, including in the peak body’s budget roadmap.

“These are positive announcements, however we will need to see the full budget construction package to determine whether it will genuinely shift the dial and holistically increase housing supply.”

“We do welcome the Minister for Housing’s acknowledgment that more housing supply means more housing affordability,” said Denita Wawn, Master Builders Australia CEO.

“This is exactly what builders have been saying, improving housing affordability means growing supply, not simply shifting demand around through taxation arrangements.

“The budget’s flagged measures to cut unnecessary red tape has also been appreciated, with a positive National Construction Code Modernisation Interim Report, including intentions to make the Australian Standards referenced in the code free to access,” said Ms Wawn.

These measures are showing the potential for this to be a pro- housing supply budget that boosts construction activity and affordability.

However, Master Builders Australia has warned that it shouldn’t be counteracted by other new policies that would send supply backwards.

“We need a range of supply focused announcements on Tuesday when the budget is handed down, and to turbocharge housing supply Australia’s builders will need more support than what has been announced so far.

“Here are the facts: the National Housing Accord is forecasted to be over 200,000 homes short of target. Building a new detached house now costs almost 50 per cent more than before the pandemic, with the Productivity Commission estimating that regulation adds up to $320,000 of the cost of a new house.

“Additionally, construction productivity has faced seven years of decline and at the same time, the workforce shortfall is growing faster than the training pipeline.”

Master Builders Australia has today reiterated what it has been consistently advocating for in its budget roadmap including accelerated depreciation for capital works, increases to the newly permanent Instant Asset Write Off, a reduction in unnecessary red tape by at least 25 per cent and investment in the construction workforce domestically as well as activating skilled migration.

“What builders don’t need is policies that reduce the incentives to build new homes.

“Tuesday’s budget must make it easier to deliver the homes, infrastructure and buildings Australians rely on,” said Ms Wawn.

Media contact: Dylan Hafey, Media Advisor

0497 330 064 | dylan.hafey@masterbuilders.com.au