Queensland Budget to Drive Unprecedented Demand for Heavy Construction Materials

The Queensland Government’s 2025–26 Budget signals a historic uplift in demand for cement, concrete, and aggregates across the state, underpinned by a record $116.8 billion (over the forward estimates) infrastructure pipeline and large-scale transport, housing, education, and Olympic precinct construction.

“This Budget sets in motion a once-in-a-generation wave of major project delivery that will be deeply materials-intensive,” said Michael Kilgariff, Chief Executive Officer of Cement Concrete & Aggregates Australia.

“As a result, the industry is preparing to meet sustained demand for quarry materials, concrete and cement over the next decade.”

Key drivers of materials demand in this Budget include:

  • Bruce Highway ($9B): Safety and capacity upgrades will require significant volumes of road base, asphalt aggregates and precast concrete for bridges and interchanges.
  • The Wave ($5.5B) and Faster Rail to the Gold Coast ($5.75B): New heavy rail corridors and urban transit will require tunnel linings, ballast, pre-mix concrete and structural elements.
  • Brisbane 2032 Games Delivery Plan ($4.7B): Venues, athlete villages and precinct infrastructure will necessitate bulk materials over a compressed delivery window.
  • Housing and Land Supply ($7.6B): The combined investment in social housing and the Residential Activation Fund will intensify demand for ready-mix concrete and subdivision infrastructure across greenfield and infill locations.
  • Education and Health Builds ($21.9B and $33.1B respectively): New schools, hospitals and expansions across regional and urban areas will increase demand for foundation and structural concrete products.

“The delivery of these projects will hinge on coordinated access to essential heavy construction material inputs. That includes efficient quarry approvals, high-productivity freight routes, operating conditions that enable just-in-time delivery of material to sites, and workforce attraction and retention strategies across all segments of the construction supply chain.

“The Infrastructure Australia 2023 and 2024 Market Capacity Reports highlighted that demand for quarry products, concrete and bitumen in SE QLD is expected to outstrip available supply, leading to cost escalations, project delays and delivery bottlenecks. The report called for early engagement with materials suppliers and more proactive planning across governments to secure long-term access to extractive resources and mitigate the impact of global supply chain volatility and domestic regulatory constraints.

“With the industry ready to play its part, now is the time for government to engage with CCAA and its members to prioritise productivity and planning reforms of Queensland’s essential heavy construction materials industry, if this extremely ambitious infrastructure plan is going to succeed.”