SA Budget Boosts Need for Construction Materials Planning

Key Facts:

• The South Australian Government’s 2026-27 Budget includes a $29.1 billion infrastructure programme and a $2.5 billion housing package, driving significant demand for cement, concrete and aggregates.
• The cement, concrete and aggregates industry contributes approximately $950 million to South Australia’s Gross State Product and supports 4,479 jobs across the state.
• CCAA is calling for the establishment of a South Australian Heavy Construction Materials Supply Plan, backed by a statewide supply and demand study to identify future material requirements and potential supply constraints.
• Major upcoming projects – including Torrens to Darlington, the new Women’s and Children’s Hospital, and AUKUS-related defence investment – are expected to significantly increase demand for construction materials for many years.
• CCAA is urging the Government to improve planning protections for strategic quarry resources and streamline approvals processes to ensure construction materials can be supplied as efficiently as they are demanded.

Cement Concrete & Aggregates Australia (CCAA) has highlighted the importance of long-term construction materials planning following the South Australian Government’s continued investment in housing, infrastructure and economic development initiatives in the 2026–27 State Budget.

Alongside a $29.1 billion public sector infrastructure program over the next four years, the Budget includes a $2.5 billion housing package aimed at supporting the delivery of 13,500 new homes annually, including a $1.3 billion Rent to Own program, a $500 million Housing Fast-Track Fund and a $500 million Apartment Fast-Track Fund.

The Budget also provides continued investment in road, transport and school infrastructure, reinforcing demand for the heavy construction materials needed to build and maintain South Australia’s homes, communities and productive assets.

CCAA has welcomed the Government’s commitment to maintaining operating surpluses, improving public sector productivity and delivering infrastructure investment within a framework of fiscal discipline. The Budget projects operating surpluses totalling $1.4 billion across the forward estimates and includes additional savings measures targeting non-frontline areas of government.

Recent analysis shows the cement, concrete and aggregates industry contributes approximately $950 million to South Australia’s Gross State Product and supports 4,479 jobs across the State, reinforcing its role as a key enabler of economic activity, housing delivery and infrastructure construction.

“South Australia’s housing, infrastructure, renewable energy and defence ambitions all depend on a sustainable and reliable supply of heavy construction materials,” CCAA Chief Executive Officer Michael Kilgariff said.

“The Government has rightly focused on accelerating housing delivery and maintaining investment in critical infrastructure. The next challenge is ensuring the construction materials needed to deliver those commitments can be approved and supplied just as efficiently.”

CCAA’s South Australian Policy Priorities call for the establishment of a South Australian Heavy Construction Materials Supply Plan, supported by a statewide supply and demand study to identify future material requirements and potential supply constraints. The industry is also seeking stronger planning protections for strategic quarry resources and streamlined approvals processes across government agencies.

With South Australia entering the delivery phase of major projects including Torrens to Darlington, the new Women’s and Children’s Hospital, more housing developments across metropolitan Adelaide and future defence-related investment associated with AUKUS, demand for quarry materials, concrete and cement is expected to increase significantly for many years to come.

“The challenge is no longer whether demand will materialise, but rather to apply the right policy settings to ensure the heavy construction materials sector can deliver the materials needed to meet that demand,” Mr Kilgariff said.

“As the Government seeks productivity improvements across the economy, there is an opportunity to improve productivity across the construction supply chain through faster approvals, better resource planning and stronger protection of strategically important quarry resources.”

“By taking a proactive approach to construction materials planning, South Australia can secure affordable, locally sourced materials that support housing delivery, infrastructure investment and economic growth.”

About us:

About CCAA CCAA is the voice of Australia’s heavy construction materials industry, an industry that contributes $20.7 billion to GDP and supports 112,970 jobs nationwide. CCAA members produce most of Australia’s cement, concrete and aggregates, which are essential to the nation’s building and construction sectors.