Updated April 13, 2019 08:14:55The Commonwealth Building Material Program, which pays for a wide range of building materials including building insulation, roofing materials, exterior finishes and structural systems, will cost the government about $8 billion over the next 10 years, the Australian Government’s first full budget estimate shows.
The funding comes as part of the $1.8 trillion package that will be delivered in the next 12 months.
The budget document said the Commonwealth program would also contribute to a $2.5 billion investment in new infrastructure.
“This program will provide a new source of income for the Commonwealth Government,” the budget document stated.
“The Commonwealth Government will invest in the Commonwealth building material program through a range of projects, including the purchase of insulation for Commonwealth buildings and the purchase and delivery of roofing insulation to Commonwealth buildings.”
It said Commonwealth funding would also be provided to help the Government achieve its ambitious target of building 20,000 homes by 2020.
But the government is not sure how many homes it is investing in.
Under the Building Materials program, Commonwealth funding will go to provide insulation for buildings, such as those for public housing and housing associations, and to purchase building materials and other services.
Building insulation is typically manufactured in a factory and sold to governments through an online auction.
The insulation industry is booming with more than 1,500 companies operating in Australia.
Some of those companies have been granted a special “bidding” program to bid on Commonwealth building materials contracts.
Under the program, the Government will provide about $6 billion over five years, which will be allocated over the coming three years and will be used to fund building projects, such for roofing, insulation and other insulation, in NSW, Victoria, Queensland, South Australia and Tasmania.
According to the Department of Housing and Urban Renewal, building insulation is the second largest construction industry in Australia after cementing.
The government is looking to secure up to $2 billion in government funding over the 12 months of the budget, with a total of $8.5 million from the Building Construction Fund and $3.5 in the Building Forestry Fund.
However, it is not clear whether Commonwealth building funds will be provided for the construction of Commonwealth building facilities or whether Commonwealth funds will go directly to the projects.
Sources: Department of Finance, Department of the Prime Minister and Cabinet, Department for Planning and Infrastructure, Department in Council, Department Communications, Department Media, Department Parliamentary Library, Australian Bureau of Statistics, Department Office of the Parliamentary Under-Secretary-General, Australian Capital Territory, Australian Council of Trade Unions, Australian Institute of Architects, Australian Tax Office, Australian Strategic Policy Institute, Australian Museum of the Australian Capital Region, Australian Conservation Foundation, Australian Human Rights Commission, Australian Academy of Science, Australian Law Reform Commission, Council of Australian Governments, Commonwealth Building materials program, Building Materials Fund, Department and Council of the Commonwealth, Commonwealth building building materials program