How to resolve AdBlock issue? New inflation data highlights need to tackle construction cost pressures say Master Builders
TODAY's Australian Bureau of Statistics (ABS) data showed Australia’s inflation rate eased to 3.8%, the lowest in four months -- but housing cost pressure remains a major issue according to Master Builders Australia.
Master Builders Australia chief cconomist, Shane Garrett said the result comes after Reserve Bank Governor Michele Bullock signalled that further interest rate increases could be required if inflation was not brought under control.
“While it’s encouraging that the headline rate of inflation is softening, today’s figures continue to show that housing cost pressures remain a problem,” Mr Garrett said.
“The cost of buying a new home is rising at its fastest in three years with a 5.8% increase over the past year. This is the result of a range of unfavourable settings on the supply side of the housing market. Rental inflation also remains stubborn with a 3.6% increase over the year to June 2026,” he said.
The peak body is also warning that inflation cannot be addressed without also tackling the productivity challenges that continue to drive up costs across the economy.
Master Builders Australia will appear before the Parliamentary Select Committee on Productivity this afternoon. They plan to present evidence that productivity-reducing and cost-increasing provisions in CFMEU-backed enterprise agreements make construction projects significantly more expensive to deliver and drive inflationary pressures.
Master Builders Australia national director of policy and legal, Melissa Byrne will tell the committee that unlawful behaviour, poor procurement frameworks and excessive industrial interference undermine productivity, increase costs and fail to deliver safer worksites.
"We will be telling the Senate that the administration of the CFMEU was an important first step, but it cannot be the last," Ms Byrne said.
"Long-term reform is needed to ensure history does not repeat itself when the administration period ends.
"Our six-point plan includes stronger witness protections, the removal of productivity-sapping enterprise agreement provisions, tougher action against anti-competitive conduct, stronger fit-and-proper-person requirements for officials, and the establishment of a dedicated industry regulator.
"These reforms would improve productivity, reduce unnecessary costs and help ease inflationary pressures. The Federal Government must now focus on improving productivity, strengthening accountability and restoring confidence in one of Australia's most important industries,” Ms Byrne said.
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