From infrastructure investments and housing policies to workforce shortages and sustainability initiatives, this election has the potential to shake things up in a big way. But don’t worry—we’re here to break it all down for you.
Why Should the Construction Industry Care About the Election?
Elections aren’t just about barbecues and democracy sausages. They set the policy agenda for years to come. For the construction sector, government priorities often dictate everything from infrastructure funding to workforce strategies. A small change in policy could mean the difference between a booming order book and project deferrals.
With both major parties proposing distinct policies affecting housing, infrastructure, and the workforce, contractors need to be prepared for what lies ahead.
Key Areas to Watch
1. Infrastructure Investments
Infrastructure funding is always a top talking point in elections, and 2025 is no different. Both major parties are prioritising infrastructure spending, but their approaches vary.
- Labour’s Plan: Labour promises $17.1 billion for road and rail projects over ten years, with a record $7.2 billion earmarked for upgrades to Queensland’s Bruce Highway. Additionally, they aim to invest in social and affordable housing, with a goal of building 55,000 homes over the next five years.
- Coalition’s Focus: The Coalition plans to unlock funding for up to 500,000 new homes, with an emphasis on infrastructure supporting residential developments.
What You Can Do ✨
If you’re a subcontractor working on government projects, the promise of substantial investments could mean more work heading your way. However, make sure to stay informed about which party’s policies align with your region or specialty.
2. Workforce Challenges
Labour shortages are plaguing the construction industry, and both parties are proposing solutions to recruit and retain skilled workers.
- Labour Incentives: Labour plans to double apprenticeship incentive payments for housing construction starting in mid-2025, which could increase the pool of skilled workers entering the market.
- Coalition’s Approach: The Coalition is focused on improving training programs and migration policies to address workforce gaps.
What You Can Do ✨
Labour shortages have been a challenge for years, and while there are some great programs out there, construction struggles to attract talent—especially from younger generations. The good news? Companies focused on innovation and fresh approaches are overcoming this hurdle and bringing new people into the workforce every day. From redefining roles and positions to using modern software, there are countless ways to stand out. Leverage marketing strategies, create engaging videos, and highlight equipment that creates less burden for crews. Take inspiration from companies like Mortenson as noted by Construction Dive, that are reshaping the industry and attracting forward-thinking professionals with AI, robotics, and solar technology.
3. Sustainability Mandates
With sustainability becoming a critical focus, both parties have ambitious plans. Labour’s climate strategies include significant investments in renewable energy and green building initiatives, while the Coalition is advocating for a “balanced energy mix” that includes renewables, gas, and nuclear.
New sustainability regulations will likely require mid-to-large firms to enhance reporting and compliance processes, starting as early as 2025.
What You Can Do ✨
Start assessing whether sustainability reporting requirements will affect your projects. Consider making eco-friendly upgrades, such as opting for recycled materials or energy-efficient equipment, to stay ahead of compliance changes and appeal to environmentally conscious clients.
4. Housing Affordability and Build-to-Rent Boom
Housing affordability remains a major issue, and both parties are addressing it through distinct policies. Labour’s Housing Australia Future Fund will aim to tackle the supply crisis, while the Coalition plans to accelerate residential development by supporting essential infrastructure.
The growing build-to-rent (BTR) market is also gaining government attention. This model provides long-term revenue opportunities while alleviating the housing crisis.
What You Can Do ✨
If you’re involved in residential or mixed-use projects, the housing affordability focus and rise of BTR developments may open new streams of work. Consider diversifying your portfolio to include projects aligned with government priorities.
5. Union Dynamics and Cost Reforms
The Coalition has pledged to reinstate the controversial Australian Building and Construction Commission (ABCC), which it claims will reduce costs and improve efficiency across commercial projects. Labour, on the other hand, is more union-friendly, prioritising workers’ rights and safety.
What You Can Do ✨
Stay informed about potential changes to workplace regulations. These could affect project timelines, costs, and hiring practices, depending on which party prevails.
Practical Steps to Navigate the Post-Election Landscape
Regardless of the election outcome, preparation is key. Here are three actionable steps contractors can take to future-proof their business:
- Align with Government Priorities – Begin aligning your project bids and operational strategies with the government-funded initiatives most relevant to your skill set. Infrastructure, renewable energy, and housing projects are likely to dominate the agenda.
- Diversify Your Offerings – Consider branching out if your services primarily cater to private developments, as they may face headwinds from rising costs and investor constraints. Public sector tenders and build-to-rent opportunities could be more stable.
- Proactive Compliance Planning – Tackle new regulations head-on. Sustainability reporting, workforce mandates, and safety guidelines could all see updates post-election. Investing in legal or compliance workshops now could save headaches (and fines) later.
Looking Ahead
The stakes are high for the Australian construction industry as the federal election looms. Both major parties present opportunities and challenges, but one thing is clear—staying informed and agile will be your greatest assets.
Want to stay prepared no matter the election outcome? Schedule a demo with us to see how Assignar can help your operations thrive in the long run.
Sources
- “How Will the Federal Budget 2025-26 Impact the Australian Construction Industry,” Pinsent Masons, accessed April 30, 2025, pinsentmasons.com/out-law/analysis/how-will-the-federal-budget-2025-26-impact-the-australian-construction-industry.
- Commo. “Election 2025: Potential Impacts on Commercial Property Markets.” April 10, 2025. commo.com.au/news/2025/04/10/election-2025-potential-impacts-commercial-property-markets-rwc/1744236934.
