Federal Budget 2025-26 breakdown for construction suppliers

The 2025–26 Federal Budget outlines a significant pipeline of major infrastructure projects and housing developments across New South Wales, Victoria, Queensland, and other key regions. For construction suppliers, contractors, and tradies, these investments signal a strong demand for skills, machinery, and services in the year ahead.

Below, we unpack the key announcements, project details, and what they mean for suppliers looking to get involved.

Find government-funded projects looking for suppliers like you on iseekplant

Major infrastructure spending

Bruce Highway upgrade ($7.2 billion)

Stretching from Gympie to Townsville, the Bruce Highway Upgrade is one of the most significant road investments in this year’s budget. With $7.2 billion allocated by the federal government—covering 80% of the cost—the project targets critical safety issues, including high-crash zones, narrow shoulders, and flood-prone sections.

Project summary:

Location: Queensland (Gympie to Townsville)
Project value: $7.2 billion (80% federally funded)
Estimated minimum tender value: $250K
Procurement status: Opening mid-2025
Key project features: Overtaking lanes, bridge replacements, safety barrier upgrades
Sourcing needs: Earthmoving, asphalt, concrete, traffic control
Services required: Civil construction, roadworks, safety infrastructure

Whyalla Steelworks revitalisation ($2.4 billion)

The Whyalla Steelworks is set for a major transformation, with $2.4 billion in federal funding committed to revitalising domestic steel production and building a new green iron facility aimed at future export. This project involves a transition to hydrogen-powered manufacturing—placing Whyalla at the forefront of low-emissions industrial innovation.

Project summary:

Location: Whyalla, South Australia
Project value: $2.4 billion (includes green iron manufacturing facility)
Objective: Boost domestic steel production and enable export capability
Project involves: Hydrogen-powered transformation of steelmaking
Partnered organisations: Steel manufacturers, renewable energy suppliers
Industries impacted: Manufacturing, green energy, logistics
Planning status: Underway in partnership with state development authorities
Sourcing needs: Heavy lift equipment, renewable infrastructure suppliers, industrial services
Services required: Steel fabrication, plant upgrades, hydrogen systems integration

Melbourne intersection improvements ($125 million)

The federal government is investing $125 million to upgrade key intersections across Melbourne’s northern suburbs, including congestion hotspots like Donnybrook Road. With planning well underway, these are fast-moving, small-to-medium projects with shorter delivery windows—ideal for nimble civil crews and local subcontractors ready to mobilise quickly.

Project summary:

Location: Northern suburbs, Victoria (incl. Donnybrook Road)
Project value: $125 million
Project involves: Intersection upgrades, smart signals, pedestrian improvements
Open bidding: Expected mid-2025
Details: Quick turnaround tenders; suitable for SMEs
Sourcing needs: Civil works, traffic management, paving contractors
Services required: Road widening, line marking, signal systems

big moves in housing construction

Expanded "Help to Buy" scheme ($800 million)

The federal government is allocating an additional $800 million to expand the “Help to Buy” scheme, bringing total funding to $6.3 billion over four years. The scheme offers shared equity support—up to 40% for new builds and 30% for existing homes—requiring as little as a 2% deposit from eligible buyers. With price caps of up to $1.3 million in Sydney and $1 million in Brisbane, the program is expected to fuel significant housing demand, particularly in southeast metro areas. Fast-tracked planning approvals mean builders and tradies can expect an uplift in activity, especially across mid-tier residential developments.

Key takeaways:

Location: Southeast metro areas (Sydney, Brisbane, outer suburbs)
Project value: $800 million (part of a $6.3 billion total scheme)
Description: Shared equity homeownership model
Objective: Boost access to affordable housing
Market impact: Surge in mid-tier residential builds
Planning status: Approvals fast-tracked by state departments
Sourcing needs: Residential trades, builders, prefab suppliers
Services required: Home construction, carpentry, electrical, plumbing

Prefabrication and modular housing ($50 million)

A $50 million commitment in the budget is set to accelerate Australia’s modular housing capacity, with a focus on off-site construction to support fast, scalable residential builds. The funding targets facility development, technology upgrades, and training programs in South Australia and Tasmania—regions already positioned as leaders in prefabricated construction. As demand rises across regional and growth-zone areas, the export potential for modular housing components is also gaining traction. State boards and operators like Modular Co. are among those already partnered to deliver outcomes for affordable housing programs.

Key Takeaways:

Location: South Australia and Tasmania (national rollout potential)
Project value: $50 million
Project involves: Development of modular housing facilities and technologies
Objective: Expand housing capacity, speed up delivery in growth zones
Partnered: Modular Co., local state departments and housing boards
Export potential: High for off-site components in regional markets
Sourcing needs: Precast, lightweight panels, steel frames, tech integration
Services required: Modular construction, manufacturing, logistics, training

Other notable budget announcements

Beyond the headline projects, the 2025-26 Federal Budget includes a range of measures aimed at supporting small construction businesses and improving industry conditions:

Key Takeaways:

Procurement reform: Government contracts now require 20-day payment terms, reducing the long wait times that stall small business cash flow.
Energy relief: Power bill discounts extended through 2025, offering up to $800 in savings per year for eligible businesses.
Training incentives: Additional funding to support hiring and training apprentices—critical as labour shortages continue across the industry.
Economic outlook: GDP growth is forecast at 2.25%, with inflation stabilising near 2.5%, setting a positive tone for investment.
Tax relief: New offsets and deductions offer contractors more flexibility to develop, expand, and reinvest in their operations.

The Opposition's Budget Reply

The Opposition has outlined alternative proposals that also have implications for the construction industry, including:

$5 billion infrastructure fund to unlock up to 500,000 new homes
Superannuation access for first home buyers (up to $50,000)
A National Gas Plan to reduce energy costs and boost domestic supply
Migration changes and restrictions on foreign property investment to increase housing availability

While the policy focus and delivery mechanisms differ, both major parties are prioritising construction as a pillar of economic growth—underscoring its continued relevance in the year ahead.

Match your capabilities to government-funded opportunities with iseekplant

The 2025–26 Federal Budget marks a major uplift in government investment across infrastructure, housing, and industrial development—creating immediate opportunities for construction suppliers and service providers nationwide.

As procurement opens for these upcoming construction projects across Australia in 2025, contractors and project managers are actively using iseekplant to source plant, equipment, and specialised services. Whether you're supplying road upgrades, modular housing, or industrial builds, now is the time to get in front of demand.

Here’s what you can do to give your business the best chance of securing a slice of the action:

Ensure your iseekplant profile is up to date with the machinery and services you offer—so you're visible when contractors are actively searching.
Browse the iseekplant job board to view live sourcing requests and stay updated on project demand as it unfolds.
Don’t have a profile yet? Click here to set one up and get discovered by the people delivering this year’s biggest projects.

The opportunity is real, the work is coming—and iseekplant is where it starts.