RBA decision another sign the Federal Parliament should reject the tax hikes on housing – Statement from Master Builders Australia CEO Denita Wawn

16 June 2026

Today, the Reserve Bank has decided to hold interest rates at 4.35 per cent.

The RBA observed in its Monetary Policy Decision that “following the three increases in the cash rate target since the beginning of the year, financial conditions are now tighter than they were, and there are signs that the economy is slowing as expected.”

Over the last month, new data has revealed the first quarterly decline in residential activity since June 2025, with building approvals falling in both March and April as well as GDP slowing sharply.

Our nation is currently tracking to fall 204,000 homes short of the National Housing Accord target.

These economic headwinds require policy settings that enable, not discourage, building activity.

Master Builders Australia is calling on the Senate to reject the business tax hikes in the Federal Budget Bill.

Independent Modelling shows that the Budget over the next four years will cause:

• 3,800 Australian construction jobs to be lost
• 8,700 fewer new homes
• Up to $9 a week increases to rents
• $864 million less in GDP.

Instead of increasing taxes, Government needs to work toward policy settings that incentivise investment in the construction sector, boost its workforce, cut down on unnecessary regulation and streamline infrastructure.

The alternative is Australia still grappling with a housing crisis into the next decade.

Media contact: Dylan Hafey, Media Advisor

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