08 May 2026
Shay Singh, Head of Policy, shares his thoughts ahead of the 2026 Budget
As we head into the Budget announcement for 2026, it can be safe to assume there will be a focus on the issues of costs of living, the housing crisis, and declining productivity. And, like most industry bodies, we have advocated to government for a comprehensive list of actions that would catalyse positive change for our sector. While climate change and impacts on nature remain increasingly urgent challenges, sustaining attention on these issues amid immediate cost-of-living and economic pressures can be difficult. The game-changing funding commitments needed for these challenges are facing long odds.
So, ahead of Budget night we’re spotlighting two key opportunities where significant, targeted funding could deliver benefits for multiple issues.
One of the best examples (we’ve got plenty more, it was a tough choice) is committing more funding for retrofitting existing buildings.
Two of the priority areas in the Built Environment Sector Plan (BESP) - released last year to map a path to net zero by 2050 - are to electrify where possible and increase energy efficiency.
The 2023 Budget saw commitment of a $1 billion fund, the Household Energy Upgrades Fund (HEUF) which has now helped finance more than 10,000 energy upgrades to over 4,100 homes across Australia. The 2023 and 2024 Budgets collectively committed $800 million to co-fund the $1.1 billion Social Housing Energy Performance Initiative (SHEPI) program in partnership with all state and territory governments. An important initiative to upgrade social housing which is making a real difference for families.
We need more of this, but one size does not fit all. We need funding to back a wider range of initiatives to support the diversity of Australia’s households and building owners to make the decision to improve their home or building.
Make no mistake, this will be money well-spent.
Electrification and thermal upgrades to existing buildings – especially residential buildings – are some of the most cost-effective emissions reductions available in the economy in terms of direct emission reduction. Not only do such programs ensure long-term relief for households and businesses from high energy bills, but they also deliver progress on climate and energy security objectives, sustain jobs and return economic and health benefits well beyond the initial outlay.
In response to the release of the BESP, GBCA released the Built Environment Ambition report in partnership with the Property Council of Australia and Climateworks Centre. This report details the size of the opportunity and benefits if government were to invest in existing building retrofits at scale and pace.
The second opportunity comes in the form of modernising the National Construction Code (NCC) which will improve productivity and empower Australia’s construction industry to deliver better homes and buildings.
The NCC made the agenda for the Treasurer’s high-profile roundtable discussions last year focused on solutions for lifting Australia’s productivity. From those discussions came an announcement to pause the 2028 NCC update until 2029 and a commitment to explore how to modernise and streamline the NCC. The Treasury has just released an interim report which includes five priority reform directions which align closely with GBCA’s long-standing advocacy to modernise the NCC and support a more productive, nationally consistent building system.
The reform directions are:
1. Simplify access and use
2. Recommit to a national market
3. Tougher, more rigorous cost-benefit analysis
4. Enable innovation and new products
5. Reduce the cost of demonstrating compliance
If Australia is serious about tackling housing supply and improving construction sector productivity, while ensuring new homes and buildings are fit for a changing climate, the Budget must support the work identified in this report.
The costs of solving our biggest challenges continue to grow. This Budget is an opportunity to invest in solutions that can address affordability, productivity and sustainability in one fell swoop.