With the Albanese government securing another term, attention now shifts from politics to delivery. Labor is on track to form a majority government, providing a level of political stability. For industry, that creates an opportunity to plan long-term with confidence.
The 2025–26 Federal Budget outlines major commitments across infrastructure, clean energy, housing, and workforce capability.
“For the construction, engineering, and infrastructure sectors, the message is clear: it’s time to move from promises to performance.”
Infrastructure Spending Signals Stability
A$17.1 billion has been committed to major road and rail projects across states including Queensland, Victoria, WA, and the NT. This sits within the government’s broader commitment to a $125 billion national infrastructure pipeline, offering long-term certainty for contractors, planners, and investors.
Despite the broader fiscal pressure, with competing demands across housing, energy, and cost-of-living priorities, the continued prioritisation of infrastructure signals its central role in long-term economic strategy and delivery.
Clean Energy Strategy is also an Industrial Strategy
The government has doubled down on its Future Made in Australia agenda, with A$3.2 billion allocated to green metals and renewables manufacturing. The Clean Energy Finance Corporation also received a fresh A$2 billion to support grid-scale clean power.
If this transition is to succeed, delivery must keep pace with ambition. That means ensuring the supply chain, workforce, and approvals process can scale accordingly.
Engineering Capability Needs a National Response
Engineers Australia has called for a more coordinated national approach. They’ve urged the government to set a target of 60,000 new engineering graduates, appoint a National Chief Engineer, and embed senior technical leadership across the public service.
They’ve also reinforced the need for infrastructure decisions to be guided by qualified, independent experts, reducing exposure to short-term political cycles.
To support broader workforce goals, the government has also announced a $78 million investment to fast-track the qualifications of 6,000 skilled tradespeople, including key civil roles.
Balancing Policy Direction With Business Resilience
Labor’s platform focused heavily on cost-of-living relief, housing access, and worker protections. Several of these initiatives—particularly those tied to infrastructure and workforce—were welcomed by industry groups such as the Civil Contractors Federation (CCF).
Key initiatives include a target to build 100,000 homes for first home buyers, $1 billion through the National Housing Infrastructure Facility to unlock land via essential infrastructure, and $10,000 payments for apprentices entering housing construction trades to support early workforce readiness.
While these priorities aim to address urgent needs, they also increase pressure on a construction sector already managing tight margins and labour shortages. Proposals related to wage growth and foreign investment restrictions may further affect delivery timelines and business confidence.
As the government moves forward, balancing social policy with a supportive environment for business will be critical to sustaining execution capacity.
The Bottom Line
With the political moment behind us, the focus is now on delivery. For companies working across infrastructure, energy, and engineering, the government’s agenda presents a real opportunity to shape long-term national outcomes.
With the right alignment between policy, capability, and execution, this term can mark a turning point, not just in ambition, but in impact.
References:
Engineers Australia. (2025, May). Post-election update: Advocating for engineers and Australia’s future.
Infrastructure Australia. (2023). 2023 infrastructure market capacity report.
Assignar. (n.d.). How the Australia federal election will shape the future of the construction industry.
McGowan, M. (2025, April 15). Australia does not have enough tradies to fulfil Labor’s housing promise, experts say. The Guardian.
Pinsent Masons. (2025). How will the federal budget 2025–26 impact the Australian construction industry?
Martin, P. (2025). We’ve heard the promises. Now it’s up to Labor to deliver its housing, wages and other economic policies. The Conversation.