The property and construction sector is playing a key role in the post-pandemic recovery of our economy and communities. Being one of the largest employers in Australia and a key contributor to our national GDP, the sector is well-positioned to achieve immediate impacts in terms of jobs creation and industry support, while addressing our most pressing construction related needs.

At the same time, buildings present a significant – and largely untapped – opportunity for an energy efficiency driven rebound. As governments move to mobilise the sector, support for energy-efficient buildings can provide an effective boost of economic activity and increased labour demand, while delivering on a number of policy objectives. Benefits range from labour-intensive projects that are rooted in local supply chains to improved energy affordability for consumers, reduced stress on the electricity network and a least-cost pathway to decarbonisation.

Recommendations:

The Australian governments to fund a major overhaul of the building sector to reignite the economy:

1. Improve the comfort and performance of residential homes through targeted equipment upgrades and incentives for deeper retrofits, with a priority for social housing and low income and vulnerable households
2. Drive commercial building upgrades through tax incentives and establish a ‘Smart Building Fund’ to support mid-tier building owners to rate and guide the upgrade of their buildings
3. Embark on an ambitious program to upgrade schools and hospitals and other government-owned and occupied buildings with the Commonwealth committing to match funding from state and territory governments up to $150m in each jurisdiction
4. Empower building owners, buyers and renters with a single national rating scheme for home energy performance and prioritise its development in line with the recent recommendations from the King Review
5. Undertake a rapid review of skills needs around energy efficiency, and roll out priority measures to support workers transitioning from other sectors