Today, Master Builders has released its pre-budget submission. The building and construction industry, employing over 1.3 million Australians and comprising 450,000 businesses, faces serious challenges. Productivity has halved over the past 30 years, and inflation in the sector remains stubbornly high. Despite its economic importance - every $1 invested generates $3 for the economy - government policies are dragging the industry backwards.

Housing crisis and supply issues

Master Builders warns that Australia is falling short of its 1.2 million new homes target by 166,000 homes over the next five years. Key obstacles include labour shortages, high material costs, slow approvals, and rising compliance burdens. With rents rising 6.2% over the past year, housing inflation must be tackled through supply-side reforms.

Policy solutions for economic growth

Master Builders CEO Denita Wawn urges the Federal Government to use the next Budget to boost productivity and industry capacity. She calls for:

• Expanding the National Productivity Fund to include regulatory reform and occupational licensing.
• More support for apprenticeships beyond the current $10,000 incentive.
• Reducing compliance and regulatory burdens on small businesses, which make up 99% of the industry.
• Fixing bad workplace laws and addressing CFMEU issues.
• Overhauling taxation and ensuring fair business practices.

A path forward

Master Builders lays out a clear roadmap for industry and economic growth, focusing on:

• Lifting productivity and building more homes.
• Strengthening the workforce through training and incentives.
• Supporting business development while ensuring safety and fairness in the construction chain.
• Investing in a sustainable future and defence capabilities.

The message is clear: Australia knows the problems and how to fix them - the next Budget is the time to act.

Full submission and specific policy recommendations can be found here.