Building and construction is a large part of the state’s economy. When local government tax is included, it accounts for over 56 per cent of the state’s tax revenue. Total building and construction work done in the 2021-22 financial year was valued at $62.66 billion. This is equivalent to 12.2 per cent of the state’s Gross State Product (GSP).

Our industry has one of the largest multiplier effects on our economy. Every $1 million worth of building activity generates a total of almost $3 million in economic activity and supports nine full-time jobs across the economy.  

Applying this in real terms, in the December 2022 quarter, there was a total value of $11.5 billion of building work done in Victoria. This means that $34.5 billion worth of economic activity was generated along with the support of almost 104,000 jobs from building activity alone. This highlights our sector’s capability to continue to support our broader state economy throughout the economic downturn.

In our budget submission, MBV has focused on measures that will allow our industry to continue delivering crucial infrastructure and building homes for Victorians. These include supporting the future of our industry by addressing skills shortages, improving planning delivery to ensure future developments meet the needs of our communities, promoting housing affordability, and providing certainty for building and construction businesses. Such measures will ensure Victoria’s economy will continue to thrive for the months and years ahead.

Our submission draws upon feedback from across our industry and focuses on the following priority areas:

1. Supporting the future of our industry

2. Women in Construction

3. Securing the pipeline of building and construction work

4. Housing affordability

5. Futureproof the building and construction industry

Click here to view the MBV Submission for State Budget 2023/24. 

For further information, please get in touch with our assist team on (03) 9411 4555.