Queensland Productivity Commission backs MMC reforms as Master Builders reinforces urgent need for change

A new report from the Queensland Productivity Commission (QPC), released earlier this week, has confirmed that the state’s construction sector is being constrained by outdated regulation, procurement inefficiencies and misaligned policy settings—findings that Master Builders Queensland says align with long-standing industry warnings.

The Opportunities to Improve Productivity of the Construction Industry interim report identifies four priority areas for reform: procurement, land use regulation, building activity regulation, and labour market operation. It also highlights the role of modern methods of construction (MMC), including prefabricated and modular systems, recommending the removal of regulatory barriers to support their wider uptake.

“We must make it easier for manufacturers of prefabricated and modular construction to meet NCC requirements and speed up housing delivery,” said Master Builders Queensland CEO Paul Bidwell.

According to the report, construction productivity in Queensland has declined by around 9 per cent since 2018. If previous productivity levels had been maintained, the industry could have delivered approximately 77,000 additional dwellings—enough to make a significant dent in the state’s housing shortfall.

Master Builders Queensland, which contributed to the QPC consultation, said the findings expose the consequences of burdensome compliance measures such as Best Practice Industry Conditions (BPICs), unnecessary National Construction Code (NCC) changes, and complex payment account requirements. The Commission found that if BPICs remain in place until 2029–30, they could drive project cost increases of up to 25 per cent, with as many as 26,500 fewer homes constructed and up to $20.6 billion in economic losses.

“The decline is attributed to growing regulatory burdens and sub-optimal procurement practices—and reaffirms what we have been saying all along,” Bidwell said. “We need to scrap any measures that don’t deliver a clear net benefit to the community.”

The Commission also recommended that changes to the NCC’s livable housing and energy efficiency requirements be made voluntary until they can be justified by cost-benefit analysis. Master Builders research shows these provisions can add between $22,000 and $44,000 to the price of a new home.

“The report backs our calls for a Queensland Housing Code and for NCC changes to be adopted only where a clear net benefit can be shown,” Bidwell said.

With only 37,924 homes approved across Queensland over the past 12 months—well short of the state’s 50,000 annual target—Master Builders says the QPC report must lead to policy reform.

“This report is a turning point. Let’s seize the opportunity to build a more productive, affordable, and sustainable future for Queensland,” Bidwell said.

The QPC’s final report will be delivered on 24 October 2025.

Download the interim report (PDF) HERE