The Queensland Government has kicked off a wide-reaching inquiry into the productivity of the state’s building and construction sector, a move that could reshape how projects are approved, delivered, and managed for years to come.

Under direction from Treasurer and Minister for Home Ownership David Janetzki, the Queensland Productivity Commission (QPC) has been given six months to dig into the barriers slowing down the sector and deliver bold, evidence-based reform recommendations. For builders on the ground, this review offers a rare chance to influence change at the policy level.

A Sector Under Pressure

The numbers are staggering. Queensland’s construction industry generated $37.6 billion in output last year and employs over 279,000 people. Yet its productivity has lagged behind the broader economy for decades, and the gap seems to be growing.

COVID-19, soaring material prices, a skills shortage, and a national housing crisis have all added pressure. But now, with a booming population, rental vacancies sitting at around just 1%, and the government committing to 1 million new homes across QLD by 2044, something has to give.

At current build rates, we’re falling behind by more than 15,000 dwellings a year.

What Will the Review Cover?

The QPC will look closely at:

• Planning delays, approval bottlenecks, and regulatory duplication across all levels of government
  
• Labour supply constraints, skills shortages, and workforce development
  
• Procurement inefficiencies, particularly how government contracts (including Best Practice Industry Conditions) affect builder margins and labour access
  
• Barriers to innovation;nlike modular construction, prefabrication, and digital tools
  
• How small and regional subcontractors are impacted by red tape and eligibility thresholds for government projects
  
• The impact of policy settings on the cost and delivery time of both residential building and infrastructure projects

Crucially, it will benchmark Queensland’s performance against other states and jurisdictions, highlighting practical reforms to fast-track improvements.

Voices From Government

Minister for Housing and Public Works Sam O’Connor said the Inquiry was a critical step toward fixing what’s broken in Queensland’s building and construction sector. 

“We’ve heard loud and clear from builders across Queensland red tape and outdated regulations are stalling housing projects and driving up costs,” Mr O’Connor said. 



Source: Property Council Australia. (L-R) Brisbane Housing Company CEO Rebecca Oelkers, Treasurer David Janetzki and Minister for Housing and Public Works Sam O’Connor.

What Does This Mean for Builders?

This inquiry isn’t just about policy, this is about productivity on site. Whether you’re dealing with inconsistent code interpretations, competing for labour against major government projects, or struggling to scale due to licensing and procurement rules, the QPC wants to hear about it.

And this time, builders at every level will have a seat at the table. The review will include broad consultation with everyone from tier-one firms to sole traders, consultants, unions, and even customers. Builders will be able to submit feedback confidentially, providing real stories from the coalface.

Real Reform…Or Another Review?

The opportunity is clear, but so is the challenge. Past reviews have offered insight without follow-through. What makes this one different is the scale, the timing, and the intent to cut through bureaucracy and unlock Queensland’s building capacity before housing pressures reach a tipping point.

And with major Olympic infrastructure looming on top of housing targets, the pressure is on to get this right.

The Good Builder Take…

If you’re a builder, tradie, or supplier in Queensland, this review could shape your future workflows, margins, and opportunities. We’ll be covering this in depth over the next six months and sharing how you can get involved in the consultation process.

Stay tuned—and if you’ve got thoughts on what needs fixing, let us know. We’re listening. And so is the Queensland Government.

For more head to: https://www.qpc.qld.gov.au/

Author: The Good Builder

The Good Builder is a media platform that provides news and insights for Australia’s home building industry. From exclusive stories and curated insights to bold industry perspectives, we deliver the news and updates that keep builders, suppliers, and the entire home building industry inspired and ahead of the curve.