Master Builders makes case for reform at productivity hearing

22 April 2026

At today’s hearing of the Senate Select Committee on Productivity in Australia, Master Builders Australia made the case for reform and laid bare the reasons that have led to seven years of productivity decline in the construction sector.

In Master Builder’s prepared opening statement, National Director for Policy and Legal Melissa Byrne said productivity is 21.5 per cent lower than it was just over a decade ago, with the Productivity Commission estimating that regulatory burden is costing up to $320,000 per new house.

“The rules that our industry must obey are onerous and inflexible. They make it more expensive to perform work, in addition to slowing it down. Current workplace relations settings are riddled with productivity impediments,” said Ms Bryne.

Master Builders Australia Chief Economist Shane Garrett explained it now takes 33 months, just under 3 years, to build a new apartment. This is in stark contrast to the 21-month build time of a decade ago.

“There are many cases where unfavourable productivity torpedoes the financial viability of prospective housing developments. This deprives us of many of the new homes that Australians needs,” said Mr Garrett.

Ms Byrne added, “In these uncertain times, our industry needs to be spared destabilising policy changes that do not improve productivity on worksites. Increased housing taxes through restrictions on the capital gains tax discount or negative gearing would also be counterproductive.”

Master Builders called for the following productivity lifting measures:

• Reduce regulation by 25 per cent, as called for by the Alliance of Industry Associations. The National Construction Code streamlining process must also be allocated adequate resources.
• Increase investment attractiveness by offering accelerated depreciation for capital works and increases to the Instant Asset Write Off.
• Make regulated Australian Standards available free of charge.
• Shore up the supply chain by investing in local manufacturing through a focus on reducing input costs and one that doesn’t impede the flow of good quality and compliant building materials to the Australian market.
• Establish an independent regulatory authority with robust investigatory and enforcement powers to oversee industrial conduct in the construction sector.
• Uplift the domestic skills pipeline while embracing skilled migration in the meantime. If done right, Activate Australia Skills estimates an improved system could deliver 2.4 houses per skilled migrant offsetting increased demand on housing and helping to reach construction targets including the National Housing Accord.
• Improve bargaining, completion laws and preserve freedom of association. Provisions covering cartel and secondary boycott behaviour must apply in the industrial context and productivity sapping clauses in enterprise agreement need to be banned.

Media contact: Dylan Hafey, Media Advisor

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