Queensland Treasurer Cameron Dick unveiled the 2023-24 budget on the 13th of June. This state budget showcases a record surplus of over $12 billion, which the Palaszczuk government will put towards its biggest building and cost-of-living programs.  How is this possible? State government revenue received a massive boost in 2022-23, thanks to a $10 billion revenue windfall from coal and oil royalties and higher tax revenue. “We can deliver our state’s biggest cost-of-living program, our state’s biggest building program and deliver lower debt for one simple reason – progressive coal royalties,” Minister Dick said. Let’s take a closer look at some of the spending earmarked for the construction industry, and what a few industry experts have to say about it. To sum up briefly:  This budget has generally received positive feedback regarding infrastructure spending and other initiatives, but copped some criticism about limited housing support (more about that further down). Infrastructure spending grows by 21 per cent The Palaszczuk government added $7.7 billion to Queensland’s infrastructure budget from last year. This means $45 billion will be spent on infrastructure projects over the next four years. Queensland’s infrastructure funding is now at its highest level in over a decade, representing 12.9 per cent of general...

On the 9th of May, the Albanese government unveiled its first budget to a nation still recovering from economic shocks caused by the COVID-19 pandemic.  Treasurer Jim Chalmers had a clear message: it's time to invest in the nation's prosperity and foster a fairer society.  In summary: The federal budget is expected to deliver a small surplus of $4.2 billion this financial year – influenced by robust employment figures, high commodity prices and nominal wage growth that performs better than anticipated.  Early predictions from NAB Group Economics flag a neutral economic impact over the coming years. What budget measures can the Australian construction industry look forward to, as we grapple with ongoing rising costs and labour shortages? At a glance:   Master Builders Australia welcomed the federal government’s $2 billion investment in new social housing nationwide; but also criticised a lack of support for productivity measures that would help construction businesses to get more done. What about commercial construction specifically? We’ll discuss the key talking points, including current uncertainty around infrastructure spending (as an independent review gets underway). Independent review into infrastructure spending The federal government pledges to continue Australia’s $120 billion infrastructure pipeline over a 10-year timeframe, however, funds are likely to be reprioritised...

Good news: Australia’s building industry has achieved an impressive feat, hitting record highs for employment numbers across the nation. Data from the Australian Bureau of Statistics shows the seasonally adjusted number of people employed in construction stood at 1.28 million when measured in November 2022. This is 12 per cent higher than levels recorded a year earlier in November 2021. Having said this, we still don’t have enough skilled workers to fill thousands of job vacancies. Research from the National Skills Commission shows that vacancy levels continue to soar for construction, architecture and engineering jobs. In particular, there’s enormous demand for positions such as plumbers, electricians, carpenters, crane operators, forklift drivers, civil engineers and mining engineers.  Why is demand so high? The pipeline of construction projects is overflowing, thanks to record investment in public infrastructure and residential buildings. Despite the impressive employment numbers, it isn’t enough to fill the gaps. Infrastructure Australia predicts we will face a shortage of 111,800 skilled infrastructure workers by September 2023 (as reported in Sourceable). As the construction sector continues to evolve, it’s critical that we see more initiatives that support skills training and diversity.  On that note, Master Builders Australia recently welcomed the federal government’s decision to expand...

Please be aware that persistent heavy rain impacts the ground and creates an excavation hazard.  The number of excavation accidents has risen on construction sites and farms, according to the NSW regulator for workplace safety. Tragically in June, a 33-year farmer died from fatal head injuries acquired while extracting a bogged bulldozer.  In a separate incident, a 19-year old apprentice was injured when a two-metre-high unsupported trench collapsed on a residential building site. These are two of the most serious examples of the recent excavation accidents. Although the SafeWork NSW report focuses on NSW, its warning should be heeded by construction workers and farmers across Australia. This is particularly important as we enter the new year, because above-median rainfall is expected to continue from January to March for NSW and Queensland due to La Nina and record warm waters.  Natasha Mann, Head of SafeWork NSW, says it’s crucial to monitor ground conditions on a regular basis. “Proper planning before work begins and ongoing monitoring of ground conditions is essential, especially following flooding or heavy rain. If in doubt we recommend consulting further with a geotechnical engineer,” Ms Mann said. “The consequences of failing to properly assess site conditions can be fatal.” Irrespective of weather,...

The Australian construction industry faces a number of short-term challenges amid rising interest rates and inflation. Despite these setbacks, the latest forecasts by Master Builders Australia predict that overall construction activity is still expected to expand modestly over the coming years. However, a decline is expected for residential construction (particularly medium-high density projects). Every year around 200,000 new homes need to be built in order to cater to long-term population growth, but it’s likely that builders won’t meet this target until 2026. “While pandemic conditions brought forward some residential building demand, the current economic conditions of interest rates hikes, inflation increases, and continued shortage of workers and materials, are significantly contributing to the decline”, according to Master Builders Australia Chief Executive, Denita Wawn. “Our members continue to be frustrated with lengthy delays in approvals for land title, building applications, and occupation certificates. Shortage of land in the right places, high developer charges, and inflexible planning laws also restrict opportunities to meet the housing needs of our future. These long-term supply challenges are the responsibility of State and Territory Governments”. Master Builders Australia welcomes the federal government’s decision to set up the Housing Supply and Affordability Council, alongside state and territory governments.  The Council aims...

As you probably know, our industry has endured a timber shortage for around two years.  We’ve faced project delays, budget blowouts and high levels of stress as a result of the global timber supply problem and associated price hikes. It’s been tough.  However, there’s some good news. It seems that price hikes for structural timber have slowed down on a quarterly basis since the start of this year (based on data covering the first three quarters of 2022).  Although timber prices continued to rise in the September quarter, the rate of price growth has stalled. For example, prices for timber products rose by 2.75 per cent in the September 2022 quarter, which is significantly lower than the 28 per cent hike for 2021-22.  It will be interesting to see what the data shows for the final quarter at the end of this year! How bad is the timber shortage (Australia)? Over the last two years, builders have struggled to source timber, which delayed construction projects by months. The sourcing of suitable wood came with a high price tag. Timber costs surged by as much as 50 to 100 per cent in 2021 alone. In September 2021, Queensland timber supplier Drew Parker told The Urban...

As the end of 2022 draws closer, let’s reflect on a significant policy change that impacts how we address fire safety in class two buildings. … Safety standards for Australian apartment buildings have recently improved. This year has ushered in some of the biggest changes in passive fire protection laws over five decades.  Class two buildings must now be tested to the latest standards for passive fire protection testing methods. It’s no longer acceptable to rely on fire safety tests that were performed with outdated standards, as previously occurred.   As such, any passive fire protection system that relies on older tests won’t be permitted when constructing new buildings or retrofitting existing properties. The changes were implemented in September 2022 to prevent tragedies such as the Grenfell tower fires in London.  What is passive fire protection? These systems consist of different components, such as walls, floors, doors, electrical cables and plumbing. In the event of a fire, these systems contain the outbreak to one compartment of a building so that people in other areas can safely exit and firefighters have better access.  This crucial element of fire safety was previously overlooked because a loophole in the National Construction Code (NCC) didn’t require for products to...

Happy anniversary to TPM Builders! We’ve been delivering quality commercial building design and construction projects for 20 rewarding years. Our team has worked hard to foster long-term relationships with clients in Queensland and Northern NSW, since Todd Mason founded the company in 2002. We work closely with architects, town planners, engineers, developers and industry experts on multi-residential, industrial and retail projects. TPM Builders never compromises on quality and integrity – and our contractors meet the highest standards in commercial building design and construction. Over the years, we’ve earned a reputation for delivering the best outcomes for clients. Our signature no-nonsense approach minimises costly delays and overruns! We’re committed to delivering reliable services on time, with a strong focus on honesty, collaboration and professionalism. TPM’s processes are transparent and easy to understand. We keep clients informed every step of the way, so they can steer the direction of their commercial building design project. There are no nasty surprises at the end of the project, as we offer fixed contract prices. This includes an exhaustive inventory of inclusions and exclusions, for complete transparency from the start of the project. Are you looking for reliable commercial builders (QLD and Northern NSW)? Call 1300 733 891 or fill...

Like the rest of Australia, Queensland’s construction industry faces rising material costs, project delays and other logistical challenges related to the COVID-19 pandemic. It’s been a tough year for many of us. Despite this, the building industry has continued to support the state economy and this contribution has paid off: Queensland presents annual growth rates that surpass the national average.  How does the construction sector benefit from the Queensland budget 2022-23?  Building and infrastructure spending At a glance: The 2022-23 budget delivers funding for new houses, schools and hospitals, but the bulk of capital spending is for transport infrastructure. What funding is there for building properties and general infrastructure? $200 million will go towards building high-level shared infrastructure services; while also increasing housing in priority development areas. This investment will support the growing numbers of people choosing to live in Queensland, which is experiencing its highest interstate migration rates in almost 20 years!  Demand for land is particularly strong in Southeast Queensland, according to Minister for Planning Steven Miles. As such, a new Growth Acceleration Fund will develop essential infrastructure in that region. “The new Growth Acceleration Fund will focus on growth areas in South East Queensland including the Sunshine Coast, Moreton Bay, Brisbane,...