Cement Concrete & Aggregates Australia (CCAA) has welcomed the significant infrastructure investment in both the NSW and Queensland 2025/26 Budgets.
CCAA has said that the industry investment has reaffirmed the need for a heavy construction materials plan.
CCAA CEO, Michael Kilgariff said that the CCAA welcomes the $17.7 million allocation in the NSW Budget towards the new Investment Delivery Authority (IDA), which needs to prioritise a coordinated plan for securing material supply, as projects face cost pressures, resource bottlenecks and delivery delays.
“Securing long-term access to quarry resources, protecting freight routes and reducing red tape across approvals processes must remain a priority for the NSW Government,” Kilgariff said.
“We have a plan for this and stand ready to help the government.”
The NSW Budget includes funding for high-impact initiatives across key infrastructure categories, including:
- $10.8 billion over four years for Sydney Metro West, linking Greater Parramatta to the Sydney CBD with major tunnelling and station builds requiring millions of tonnes of concrete and aggregates
- $5.5 billion for roads in Western Sydney, supporting population growth and access to the Western Sydney International Airport and the broader Aerotropolis precinct
- $3.9 billion over four years to build and upgrade public schools, particularly in Western Sydney’s growth corridors, driving demand for foundation and structural materials across education precincts
- $3.4 billion in health infrastructure, including Rouse Hill Hospital – the first major adult hospital to be built in Western Sydney in 40 years – as well as upgrades across Campbelltown, Blacktown and Mount Druitt
- $1.0 billion in total for the Fifteenth Avenue Upgrade, enhancing connectivity between Liverpool and the airport with new road infrastructure and stormwater assets
- $2.8 billion in regional road safety upgrades, and an additional $48 million to improve mobile coverage on major freight corridors
- Over $25 billion jointly committed by the NSW and Federal Governments in the Aerotropolis area, including $3.6 billion for the Metro to Western Sydney Airport and more than $2 billion for the toll-free M12 Motorway
“We commend the NSW Government’s commitment to long-term infrastructure investment and economic development. But the affordability and timely delivery of these projects hinges on securing a reliable supply of construction materials.”
CCAA has said that 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,” Kilgariff said.
“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 South East QLD is expected to outstrip available supply, leading to cost escalations, project delays and delivery bottlenecks.”
Kilgariff said that 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 essential heavy construction materials industry, if this extremely ambitious infrastructure plan is going to succeed.”
