Federal Budget maintains momentum for sustainable, net-zero buildings

The Green Building Council of Australia (GBCA) welcomes the Albanese Government’s Federal Budget, which underscores the critical role that efficient buildings play in improving the quality of life of all Australians.

“We support the Albanese Government’s $1.8 billion in energy bill relief – not as a short-term measure, but because it recognises the essential role of affordable, efficient energy for Australian households and businesses,” says GBCA Chief Executive Officer, Davina Rooney.

“However, true affordability isn’t about subsidies alone; it’s about long-term investment. Efficient buildings lower emissions, reduce running costs and create healthier, more comfortable spaces to live and work. To deliver lasting relief, we must move beyond bill support and prioritise sustainable, resilient buildings.”

Several key budget investments signal positive momentum towards sustainable, resilient buildings:

• $54 million will accelerate the uptake of modern methods of construction, supporting faster, more efficient housing solutions. “Addressing the housing affordability crisis requires innovation. By supporting prefabricated and modular construction, the federal government is unlocking opportunities to improve material efficiency, reduce carbon emissions and improve circularity – all essential elements in a sustainable, resilient housing sector,” Ms Rooney says.
• $626.9 million over four years will reframe the New Energy Apprenticeships Program, and the Albanese Government has committed to working with states and territories, unions and employers, on a national occupational licence for electrical trades. “We see both these measures as important to delivering the ‘green collar’ jobs we need for a net zero future.”
• $56.7 million in grants of up to $25,000 for more than 2,400 businesses under the Energy Efficiency Grants for Small and Medium-Sized Enterprises program. “These grants will provide much-needed funding for a range of energy upgrades, including replacing inefficient appliances and improving heating systems.”
• $3 billion for Australian Made Metals will support Australian manufacturers to reduce embodied carbon in critical building materials such as aluminium and steel. “This initiative shows that sustainability has multifactorial benefits – we can create local jobs, strengthen our supply chains and cut emissions at the same time.”
• The federal government will extend the Environmentally Sustainable Procurement Policy, launched April 2024, to capture an additional $4.5 billion in public procurement. “This increased funding underscores the Albanese Government's commitment to driving investment and innovation in sustainable goods and services,” says Rooney.

The 2025-6 Federal Budget does not introduce major new sustainable building initiatives. However, Ms Rooney notes: “Over the past few years, the GBCA has worked closely with the Albanese Government on the recommendations outlined in Every Building Counts. Nearly 50% of these – 19 of 39 recommendations in total – are already on a pathway to implementation.”

Launched in 2023, Every Building Counts outlines a comprehensive strategy to achieve zero-carbon-ready, all-electric, resilient buildings.

“While major new funding initiatives have not been outlined in this budget, we recognise the substantial funding allocated in the previous budget. This steady progress is a positive signal for Australia’s transition to a net-zero built environment.

“We will be watching closely during the upcoming election campaign for clear commitments that support NABERS, the Australian Building Codes Board and other measure which play a crucial role in driving a sustainable and energy-efficient built environment,” Ms Rooney concludes.