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Signed Commonwealth funding agreements covering seven Australian states and territories contain an identical requirement to allocate 60 per cent of programme funding to Building 4.0 under the Federal Government’s $39.3 million Advancing Prefabricated and Modular Construction programme.
The published agreements cover New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania and the Australian Capital Territory.
On page two, under Estimated financial contributions, the agreements state:
“60% of the Commonwealth funding to States and Territories will subsequently need to be allocated to Building 4.0. This allocation will apply to each milestone individually.”
Applied to the full national programme allocation, this represents $23.58 million earmarked for Building 4.0.
The Northern Territory is included in the programme’s funding table, although a separately signed Northern Territory agreement has not been identified among the seven published schedules reviewed. The $23.58 million therefore represents 60 per cent of the national allocation, rather than an independently verified total across eight signed jurisdictional agreements.
The agreements do not establish whether the full amount has been transferred.
Funding arrangements and programme responsibilities
The programme, which commenced in August 2026 and runs until 30 June 2028, is intended to support the development and adoption of a publicly available national kit of parts for residential construction.
Building 4.0, an established publicly funded research and industry development initiative, is identified as having a central role in further developing the system and working with participating jurisdictions to encourage its adoption.
The agreements identify activities including demonstration projects, manufacturer engagement, production of compatible components and integration into government and private housing programmes.
However, the published schedules do not provide an itemised breakdown of how Building 4.0’s allocation will be spent across technical development, implementation, staffing, external contractors or administration.
Clause 4 requires separate activity appendices to be agreed between the Commonwealth and individual jurisdictions, specifying funding provisions, reporting obligations and endorsed workplans.
Clause 9 gives the Commonwealth responsibility for final funding decisions, while noting that it expects to object to activities agreed between states and Building 4.0 only in exceptional circumstances.
The agreements establish Building 4.0’s central role in developing and implementing Australia’s national kit of parts system. However, the published schedules do not provide a detailed breakdown of how the funding allocated to Building 4.0 will be distributed across programme activities.
Further clarification of the approved workplans, expenditure arrangements and delivery milestones would provide greater insight into how the national programme will support manufacturers and housing delivery.
Find the Federal Finance Relations agreements HERE
