The Federal Budget offers short-term relief for cost-of-living pressures, but without action on productivity, Australians will continue to face rising costs. The Australian Constructors Association (ACA) is calling for urgent reform to boost construction productivity—one of the biggest factors influencing the price of housing, infrastructure and essential services.
ACA CEO Jon Davies said real change won't come from another budget focused on short-term cost-of-living measures, but from a plan that tackles productivity at its core.
"Band-aid solutions just push the problem further down the road. We need big-picture reforms that make construction more efficient, lower costs and ease pressure on households," said Mr Davies.
Construction is one of Australia's largest industries, employing over 1.3 million people and contributing nearly 8% of GDP. Yet productivity in the sector has barely improved in 30 years, falling more than 30% behind other major industries – that's an annual $60 billion hit to the economy.
"Closing this productivity gap would ease labour shortages and reduce building costs," said Mr Davies.
With record infrastructure investment across the country—including major transport projects, defence, renewables and preparations for the Olympics—the federal government has a critical role to play in leading reform.
The ACA is part of the National Construction Industry Forum, which met this week to push for a National Blueprint to drive change. A key priority is reforming procurement, ensuring governments move away from the current 'race to the bottom' on price.
"It's widely recognised by government, industry and unions that contracts should be awarded based on long-term value—factoring in innovation, efficiency, and risk management—not just the lowest price," said Mr Davies.
"With an election on the horizon, there's a real risk of losing momentum. The next government must make construction productivity a national priority. Without change, the cost of homes, infrastructure, and essential services will continue to rise—leaving Australians to pay the price."
About us:
The Australian Constructors Association is the only representative body for contractors delivering vertical and horizontal construction projects, as well as undertaking infrastructure asset management. Our members construct and service the majority of major infrastructure projects built in Australia every year. Our goal is to create a more sustainable construction industry.
