Queensland Puts Construction Sector Inquiry in Motion

The Queensland Government has begun its landmark inquiry into the state building and construction sector, appointing Angela Moody as Productivity Commissioner to lead the investigation.

The inquiry is the first order of business for the Queensland Productivity Commission after Moody’s appointment.

Treasurer David Janetzki issued the first referral to the newly re-established Queensland Productivity Commission, asking it to investigate conditions in residential and non-residential construction, and examine policy and regulatory factors affecting industry productivity.

“The commission’s first inquiry will review the factors driving productivity in the Queensland construction sector and make recommendations for reform to improve productivity without compromising quality and safety outcomes,” Janetzki said.

“This important work by the productivity commission will drive up productivity and drive down cost pressures.”

The current housing shortage and the Government’s capital investment program, including Brisbane 2032 Olympics infrastructure, highlighted the importance of improving construction productivity, Janetzki said.

The inquiry comes after revelations that the existing Best Practice Industry Conditions were adding up to 25 per cent to the cost of major projects and hindering the construction of thousands of new homes.

The Crisafulli Government has paused these conditions pending the commission’s review.

According to the Terms of Reference document, the Queensland construction sector contributed $37.6 billion to the state’s economy and employed 279,000 people in 2023-24.

It points out that productivity growth over the past three decades has lagged the broader economy.

After the pandemic the industry had faced “surging construction input prices, rising insolvencies, and constraints on the supply of labour and materials”, according to the document.

The Government’s target outlined in the Terms of Reference is “one million new dwellings across Queensland by 2044—approximately 50,000 per year”—compared to recent annual completions below 35,000.

▲ The inquiry delivers on a key election commitment by the Crisafulli Government and aims to address declining productivity and rising costs in construction.

The state said vacancy rates across major centres were sitting at about 1 per cent, emphasising the need for “correct regulatory environment and policy settings” to address housing supply and affordability issues.

The commission’s inquiry will investigate what the Terms of Reference describe as “factors shaping Queensland’s productivity performance including commonwealth, state and local government legislation, industrial relations matters, procurement policies, and barriers to entry, investment and innovation in the sector”.

It will also examine “how government procurement and contracting arrangements, including Best Practice Industry Conditions, affect productivity in the construction sector”.

A separate direction document assigns the commission responsibility for administering the Queensland Government Better Regulation Policy and the Queensland Government’s Regulator Performance Framework, both dated March 2025.

The Commission will undertake public consultation with stakeholders, including industry peak bodies, construction businesses, subcontractors, and professionals.

According to the terms of reference, participants may submit confidential written input, and draft reports will be issued for stakeholder feedback before final recommendations are delivered within six months.

The commencement follows the appointment this week of Greg Chemello as chair of the Queensland Building and Construction Commission board, with Angelo Lambrinos as commissioner and chief executive, and Amelia Hodge joining the board.

The QBCC overhaul aims to focus on consumers and transparency as part of plans to increase residential construction activity.