- Productivity Commission's National Competition Policy report identifies construction and manufacturing as key reform priorities, highlighting issues with fragmented standards and inconsistent regulation
- Report calls for modernisation of standards and reduction of regulatory fragmentation to improve productivity and support decarbonisation in construction materials sector
- CCAA supports Commission's recommendation to review mandatory standards relating to construction and waste reduction
- Focus on road user charging reform welcomed, given construction materials account for 39% of national road-freight tonnage
- Report advocates for nationally consistent regulatory approach focused on outcomes rather than inputs to reduce costs and encourage innovation
Cement Concrete & Aggregates Australia (CCAA) has welcomed the release of the Productivity Commission’s National Competition Policy analysis 2025.
CCAA notes that the final report reflects a number of issues raised by CCAA in its submission and provides a constructive pathway to improve productivity, regulatory coherence and sustainability across Australia’s construction materials supply chain.
CCAA CEO Michael Kilgariff said the Commission’s analysis appropriately recognises construction and manufacturing as priority sectors for reform, acknowledging that fragmented standards, inconsistent regulation and outdated regulatory frameworks impose unnecessary costs on nationally operating industries, including cement, concrete and aggregates producers.
“The Productivity Commission has clearly identified that construction is a high-value area for standards reform, and that better alignment across jurisdictions can deliver significant economic benefits while supporting innovation,” Mr Kilgariff said.
“It is encouraging to see the final report reflect many of the principles outlined in CCAA’s submission, particularly the need to modernise standards, reduce regulatory fragmentation and avoid unnecessary barriers to productivity and decarbonisation.”
Mr Kilgariff said CCAA particularly supports the Commission’s recommendation that governments review mandatory standards relating to construction and waste reduction.
“When standards and regulatory settings differ unnecessarily, it adds cost, complexity and delay to project delivery,” he said.
“The report recognises that prescriptive regulation can unintentionally inhibit innovation, highlighting the importance of regulatory frameworks that focus on outcomes rather than inputs.”
CCAA has also welcomed the Productivity Commission’s continued focus on road user charging and heavy vehicle reform, which is particularly important for the heavy construction materials industry given the freight-intensive nature of cement, concrete and aggregates supply.
“A sustainable, nationally consistent approach to road user charging is essential to ensure Australia can continue to fund, maintain and expand the road network that underpins construction, housing and infrastructure delivery,” Mr Kilgariff said.
“This is critical for heavy construction materials, where the freight task is among the largest in Australia, accounting for around 39 per cent of national road-freight tonnage and 21 per cent of tonne-kilometres.
“CCAA has consistently advocated for a nationally coordinated model based on mass, distance and location, which would support productivity and safety outcomes for heavy vehicles while providing a stable and equitable funding base for roads as the vehicle fleet decarbonises.”
The report provides a strong foundation for the next phase of National Competition Policy reform, with CCAA continuing to work constructively with governments and stakeholders to improve productivity.
About us:
About CCAA
CCAA is the voice of Australia’s heavy construction materials industry, an industry that generates over $15 billion annually and directly employs 30,000 Australians, with a further 80,000 employed indirectly. CCAA members produce most of Australia's cement, concrete, and aggregates, which are essential to the nation’s building and construction sectors.
Contact details:
Contact: Mitch Itter, Manager Communications | 0431 542 660 | [email protected]