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The Albanese government will splash almost $40m on innovation in the construction sector as the political firestorm over housing and migration heats up.
Housing Minister Clare O’Neil is expected to announce the $39.3m investment in a speech before the National Press Club in Canberra on Thursday, only weeks after the government pledged to massively overhaul investor tax benefits in a bid to further address housing inequality.
Until now, the government has largely focused on boosting supply, including better access to trades, in addressing the crisis.
With costs steadily increasing, however, Ms O’Neil is expected to announce that funds will go toward expanding used of an innovative open source “kit of parts” housing system developed by the Building 4.0 Cooperative Research Centre.
The funds are expected to give states and territories the opportunity to trial the construction systems through “practical housing projects that suit local needs and conditions”.
That could include pilot projects, design work, technical advice, training, and supply chain development.
“If we want housing to be more affordable, we need to find smarter ways to build more homes,” Ms O’Neil said.
“Today’s announcement is about backing new building methods that can speed up construction and lower costs.”
The “kit of parts” system uses standardised building components manufactured offsite and assembled onsite, which the government says will help reduce delays.
Different manufacturers can produce compatible parts using common standards under the system, unlike proprietary modular systems owned by a single company.
“Most homes use the same basic components – walls, windows, roofs, bathrooms, kitchens,” Ms O’Neil said.
“So instead of designing everything from scratch every single time, we can standardise some parts of the process and make construction more efficient.
“That means building homes faster, reducing waste, lowering costs, and getting more people into homes sooner.
“When parts are designed to work together efficiently, you can build things faster, cheaper and more reliably.”
In a statement, Building 4.0 CRC CEO Professor Mathew Aitchison said they were excited to work with governments across Australia and industry to support implementation.
“This is about improving the system that delivers housing, making it more efficient, more consistent and better able to scale over time,” he said.
Earlier this month, the Albanese government announced it would slash the capital gains tax discount and reform negative gearing ina backflip of its pre-election promise.
It has also pledged to deliver 1.2 million new homes by mid-2029 as part of the National Housing Accord, including affordable and social housing through the Housing Australia Future Fund.
However, those targets have been largely missed.
Instead, the Coalition has pledged to peg migration to housing completion and cut red tape as it faces down the threat of One Nation.
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