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24 June 2026
Today’s ABS Engineering Construction Activity data revealed that public sector infrastructure work dropped by 3.5 per cent during the March 2026 quarter, the weakest result since September 2023.
Master Builders Australia Chief Economist Shane Garrett pointed out that the March 2026 quarter was a strong one for engineering construction activity overall, thanks to a 15.9 per cent surge in private sector work.
“March 2026 was the strongest quarter for private sector engineering construction in almost 9 years. It’s unfortunate that the ailing pipeline of public investment took some of the shine off.
“Builders are stressing the need to deliver the pipeline that has already been committed to as strong and sustained investment is vital for expanding our economy’s supply-side capacity helping crush inflation,” said Mr Garrett.
Master Builders Australia CEO Denita Wawn says the Federal Budget’s additional $2 billion in infrastructure investment, while welcome, will hardly move the dial when it comes to improving this infrastructure pipeline, let alone housing supply and affordability.
“Independent modelling shows the new enabling infrastructure funding will enable just 5,300 new homes over the next four years, not 26,000 as the Budget projected. This is further diminished by the tax changes on investment that reduce new supply by 14,000. Together, Australia will have 8,700 fewer new homes over the next four years due to this Federal Budget.
“Without roads, water and sewerage, housing projects simply can’t proceed, and those that do are hit with inflated costs. If governments want to hit the Housing Accord’s target of 1.2 million new homes, they must invest more heavily in enabling infrastructure and back it with better incentives for investment.
“We need greater investment from all levels of government in enabling infrastructure to unlock more land and opportunities in the sector. In addition, tax incentives for developments that invest in enabling infrastructure should also be strengthened to improve the feasibility of new projects,” said Ms Wawn.
Media contact: Dylan Hafey, Media Advisor
0497 330 064 | dylan.hafey@masterbuilders.com.au