Interview with Tim Gilbert, Sky News

Event: Interview with Tim Gilbert, Sky News
Date: 15 March 2025, 8:10am AEDT
Speakers: Denita Wawn, CEO Master Builders Australia
Topics: Housing crisis; Federal Election; Federal Budget; CFMEU

E&OE

Tim Gilbert, host Sky News: Now many of Australian industries will have a keen eye on what our leaders roll out in the upcoming election including, of course, the building industry. Joining me is chief executive of Master Builders Australia Denita Wawn. Denita, very good morning. Welcome to the program and let’s start with the housing crisis. Can you give us an update of where we’re at – the state of play?

Denita Wawn, CEO Master Builders Australia: Morning, Tim. Yes, we’ve seen a slight uptick on building approvals over the last month. Nevertheless, we’re still forecasting that we’ll be around about 320,000-odd homes short over the Accord period of five years. We still need to be doing an awful lot to resolve the housing supply issues. It’s going to be a critical issue for us during the federal election, given the housing crisis is very much the forefront of people’s minds, whether they are an owner or a renter.

Tim: Did the one interest rate cut help? And obviously hopeful of another one?

Denita: Yeah, it’s been interesting. Speaking to a number of the volume builders and developers, in terms of high rise density homes, we are seeing a slight increase in foot traffic, looking at sales, land and house packages and so forth. But for us, it’s not enough. It might bring a few more people out from an investment point of view, but that does not resolve the increases that we’ve been facing in terms of costs. Forty per cent increase in cost to build a home over the last five years, our productivity has declined by 20 per cent over 10 years. Until we get those structural problems sorted, it doesn’t matter what interest rate cuts we will see to resolve this housing crisis in this country.

Tim: Yeah, 20 per cent is huge, isn’t it? What are you hoping, expecting, lobbying our leaders for this election, which is on our doorstep?

Denita: Tim, we’ve launched a campaign More Homes for Aussies, and really holding all parties to account, the majors as well as the minors and the independents, to say, what are you going to do about housing supply issues? Seventy per cent of Australians believe it is up to the federal government to provide leadership, even though they are not necessarily pulling all the levers. For us, the major parties have done some things, but not enough and the area that we’re most concerned about is just really a lack of focus on the economy, and also in terms of productivity of the building and construction industry. We saw a Productivity Commission report really slamming the problems that we have, and governments need to do much more heavy lifting. So we’ll be holding all the parties, minor, major and independents to account as we see this election, slowly but surely, get to its bitter end.

Tim: Yeah, well, it’s going to happen in May sometime, isn’t it? That’s the way of course, it’s looking and we’re going to have a budget. Do you have a wish list?

Denita: We have a big wish list here, as always. Certainly for us, it’s the economy. It’s more money into enabling infrastructure. It’s more money into getting more skilled people into the sector. It’s more money in terms of ensuring that we focus more heavily on our regulation, the impact of regulation. The compounding impact of regulation is stifling the industry, and certainly, we need to be working at all levels of government to resolve that. I’d love to see some reform initiatives on the table by governments to incentivise state and territories. There’s some there, but not enough. We need a big bang reform to really resolve the productivity issues that are facing not only our industry, but really the economy as a whole.

Tim: Finally, there has been some union issues over the past 12 to 18 months. How’s that all playing out?

Denita: We’ve, you know, supported the implementation of the administrator to the CFMEU. He has really calmed things down. There’s still a long, long way to go. There’s a massive amount of additional investigation to occur. There’s a lot of cases starting to mount, and we’re still seeing problems on the ground. But, you know, the administrator is in there for three to five years. We’re only about nine months in, and we’re supportive of that process while we are seeing, you know, positive outcomes which is occurring at the moment.

Tim: Denita, it’s always great to have you on the show.

Denita: Thanks, Tim, likewise, really appreciate it.

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