Master Builders Victoria (MBV) says yesterday’s Victorian State Budget delivered a ‘mixed bag’ for the Victorian building and construction industry.

MBV CEO Michaela Lihou says while the organisation understands the Government’s need to rein in the budget and decrease spending, it was disappointed that more specific measures to tackle some of the industry’s current challenges had not been considered for funding. 

“Obviously we’re keen to continue working with the Government on the ongoing challenges for our industry and the broader Victorian community but had hoped for more specific measures in this Budget to support the stabilisation and forward growth of an industry facing ambitious building targets set by both the State and Federal governments,” she says.

“We do welcome the additional funding provided to support a program of rapid reform to strengthen the powers of the Victorian Building Authority (VBA) to deliver a building regulator that Victorians can trust, and we look forward to working with the VBA to ensure they are a pragmatic and transparent regulator.”

“Additionally, we also welcome the announcement of reform delivery to support the use of modern methods of construction and the development and delivery of a new legislative model, which we have long advocated for.”

“And the $11.4 million announced to continue support for apprentices, trainees, and their employers to meet Victoria’s workforce priorities, including through Apprenticeships Victoria and the Apprenticeship Support Officer program is a great step on the right direction.” 

However, Ms Lihou says MBV was disappointed there was no announced change in stamp duty for the domestic sector of the market, a smaller increase in payroll tax exemptions than it had hoped for, and a major reduction in overall infrastructure expenditure, which would impact the industry.

“We do welcome the increased funding to the VPA to facilitate the delivery of new communities and create more employment opportunities in Melbourne and regional Victoria, however it remains unclear exactly what this will translate as,” she says. 

“And while there was no mention of the creation of a new portfolio for a specific Minister for Building, Construction and Infrastructure, we remain convinced of the importance of such a role and will continue to actively lobby for it.”

Ms Lihou says MBV understands the Government’s prioritisation of fiscal restraint but remains hopeful of working with Government to develop meaningful strategies to deliver tangible results in the face of the current funding limitations.

Master Builders Victoria CEO Michaela Lihou is available for comment.