- No products in the cart.
29 April 2026
Australia’s inflation rate is closing in on a three-year high with the cost of living rising by 4.6 per cent over the year to March 2026. Last month was dominated by the fallout from events in the Middle East.
Master Builders Australia Chief Economist Shane Garrett noted, “once again, housing costs are the biggest driver of inflation in Australia. The past year has seen a 4.5 per cent increase in the cost of a newly built home while rents are up by 3.7 per cent over the same period.
“Along with long-standing labour shortages, building businesses have been blitzed with notices of price increases since the outbreak of the conflict. It has become much more difficult and expensive to build new homes,” said Mr Garrett.
The peak building and construction group is urging all supply chain stakeholders, including regulators, suppliers and transport operators, to ensure levies and price rises linked to fuel and supply disruptions are rolled back as swiftly as they were imposed when fuel prices decline.
Master Builders Australia CEO Denita Wawn also said governments must get the policy settings right to increase affordability while helping to ease inflation and interest rate pressures.
“Every $1 million spent in construction delivers around $2.5 million across the economy. Increased construction and housing supply must be part of the mix to help bring inflation down and reduce the risk of further interest rate hikes.
“Builders know that supply‑side policy improves housing affordability by growing stock, not simply shifting demand around. What the industry cannot afford is a tax hike on housing that dampens investment in new builds.
“As we have said, the true test for May’s federal budget is “will the budget boost new housing and other construction or reduce it,” said Ms Wawn.
Master Builders Australia’s budget roadmap for the Government includes:
- Investment incentives: offering accelerated depreciation for capital works and increases to the Instant Asset Write Off
- Regulation reduction: streamlining the National Construction Code and commit to a radical red tape reduction across the board by at least 25 per cent as called for by the Alliance of Industry Associations.
- Workforce increases: investing in all apprentice training pathways and embracing skilled migration.
- Infrastructure investment: increasing private and public investment in housing enabling infrastructure.
Media contact: Dylan Hafey, Media Advisor
0497 330 064 | dylan.hafey@masterbuilders.com.au