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Master Builders Australia has called for the federal government to focus on the building and construction sectors in the upcoming budget.
The peak industry association has released its pre-budget submission that highlighted the short and long-term pressures of the sector. Master Builders chief executive Denita Wawn stated that the building and construction industry play a “critical role” in boosting economic growth.
The key priorities outlined in the submission include dealing with industry cost pressures, supporting the construction workforce, delivering on Australia’s housing needs, investing in infrastructure, enhancing the safety of everyone in the industry, and achieving the right tax settings and simplifying regulation.
Ms Wawn stated the federal budget for 2023–24 is being formulated against a “difficult economic backdrop” due to labour shortages and cost pressures for raw materials having a hand to play in inflation hitting its highest levels in 30 years.
“While this represents a challenge, it also provides a real opportunity for bold budgetary reform to be advanced and for businesses to be unshackled,” Ms Wawn said.
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“At present builders are facing a shortage of key tradespeople as well as bottlenecks in the market for key building materials while substantial industry transformation is underway for a net zero economy.”
Ms Wawn added these proposals are focused on improving productivity in the industry and allow for “more favourable outcomes” in regard to cost, quality, and quantity of building and construction output.
“We recognise the Government has a difficult balance to strike this Budget and urge them to work alongside the private sector to weather the storm together to reduce the impact on business, workers, and the broader economy,” Ms Wawn concluded.
“Master Builders is the only industry peak body that represents small, medium and large businesses in the building and construction industry and we are calling for Budget measures that will underpin construction activity for contractors and subcontractors across these sectors.”
New home building with fall significantly
In mid-January, Master Builders forecasted that new home building starts will drop steeply just short of 200,000 per year.
It forecasted that this threshold will not be exceeded until 2026.
Ms Wawn said at the time: “Our 2022–26 residential forecasts predict a bumpy road with a downturn over the next few years.
“Forecasts will trend upwards as inward migration and interest rates stabilise, and pent-up demand shifts the dial.
“Builders continue to face regulatory burdens and prolonged delays in approvals for building applications, occupation certificates and land titles.
“Additionally, land shortages in the right places, high developer charges and inflexible planning laws are restricting opportunities to meet demand, speed up project timelines, and minimise costs to both builders and their clients.”
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