The Queensland Government has committed to sweeping reforms of the state's construction industry after an independent review found productivity has fallen sharply, contributing to tens of thousands fewer new homes being built. The reforms follow the release of the Queensland Productivity Commission's final report into the sector.
The Queensland Government has committed to sweeping reforms of the state's construction industry after an independent review found productivity has fallen sharply, contributing to tens of thousands fewer new homes being built.
The reforms follow the release of the Queensland Productivity Commission's final report into the sector, which concluded that construction productivity has declined by nine per cent since 2018 - equivalent to around 77,000 fewer homes - while labour productivity has increased by just five per cent over the past 30 years.
Treasurer, Minister for Energy and Minister for Home Ownership David Janetzki said the findings highlighted the need for what the report described as an "industry reset".
"The Government has carefully considered all 64 recommendations and is taking a whole-of-government approach to fixing a decade of declining productivity," Mr Janetzki said.
The Government has agreed, or agreed in-principle, to 51 recommendations, including permanently removing Best Practice Industry Conditions (BPICs) from procurement policies, reducing administrative and compliance burdens, and removing barriers to innovation and competition.
It has already acted to permanently abolish BPICs, which it says were projected to cost Queenslanders $20.6 billion over five years and were constraining productivity across the sector.
The report also calls for reforms to procurement rules, improved guidance on workplace health and safety regulation, a review of regulator powers alongside the Wood Commission of Inquiry, and changes to apprenticeship and training frameworks to better reflect modern construction methods.
The Government will also progress Queensland's participation in the Automatic Mutual Recognition scheme and streamline licensing processes for skilled migrants to help address workforce shortages.
Minister for Housing and Public Works Sam O'Connor said productivity reform was critical to increasing housing supply.
"This report lays bare why Queensland is facing a housing crisis," Mr O'Connor said.
"The actions we're taking are about building more homes, faster - while backing local tradies, small businesses and delivering better value for taxpayers."
The Government says work will continue across departments to prioritise implementation of the recommendations, with further targeted consultation planned with industry stakeholders.
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