The Federal Government has announced a significant new initiative aimed at addressing productivity challenges in the building and construction industry.
Treasurer Jim Chalmers revealed plans to establish a $900 million National Productivity Fund, which will provide incentives for state and territory governments to streamline building approvals and modernise construction methods.
The announcement comes as data shows labour productivity in the construction sector has declined by 18 per cent over the past decade.
Master Builders Australia CEO Denita Wawn welcomed the initiative, highlighting the urgent need for reform in the sector.
“Productivity is more than a buzzword. When productivity is down, prices go up and our ability to build the homes and surrounding infrastructure communities need is slowed down,” Ms Wawn said.
Recent analysis from Master Builders revealed that construction times have increased significantly, with the average time to build a stand-alone house rising from 9 months to 12.7 months over the past 15 years.
The fund will focus on supporting modern construction methods, including prefabricated and modular housing solutions, which could help accelerate housing delivery.
Property Council Chief Executive Mike Zorbas said this was an important move in addressing the housing crisis.
“This housing crisis demands we pull every lever, and making our planning systems fit for purpose is the golden lever,” Mr Zorbas said.
“We would have 1.3 million extra homes today if our planning systems retained the efficiency they had in the twenty years before 2001.”
“With welcome and much-needed Federal funding for social housing, planning reform and housing infrastructure, this new fund will help to cut through housing red tape and boost home construction,” Mr Zorbas said.
