From Recognition to Revolution: How Australia's Smart Building Mission Gained Unstoppable Momentum

prefabAUS's systematic advocacy has transformed Modern Methods of Construction from an industry outlier to a central pillar of national housing strategy in just 24 months

In what prefabAUS Executive Chairman Damien Crough describes as "extraordinary gains," Australia's Smart Building sector has achieved a dramatic transformation that seemed almost impossible just two years ago. From near-invisibility in national housing policy to securing hundreds of millions in federal and state commitments, the sector has moved decisively from recognition to implementation—and now to genuine momentum.

Speaking at the industry's flagship conference on the Gold Coast, Crough reflected on the sector's remarkable trajectory: "In a few short months we have advanced from almost nonrecognition to major uplift in support for MMC in these critical national areas. We are winning nationally, and winning state by state.

A Strategic Fight Worth Winning

The turnaround didn't happen by accident. At the 2024 industry gathering, prefabAUS leadership acknowledged they were "frankly downbeat" about progress. Modern Methods of Construction remained conspicuously absent from major national programs despite offering clear solutions to Australia's housing crisis.

"Smart Building was barely recognised within the Housing Accord," Crough noted, referring to the government's ambitious target of 1.2 million affordable, well-located, energy-efficient homes by 2030. The sector was similarly overlooked in the government's flagship reindustrialisation policy, "A Future Made in Australia."

But rather than accept this marginalisation, prefabAUS declared it "a fight we simply must win" and embarked on a systematic campaign to elevate Smart Building to national priority status.

Federal Breakthrough: $174 Million in Commitments

The campaign's success is now evident in concrete policy outcomes. The federal government has committed $54 million specifically to MMC development—$49.3 million supporting state and territory programs to grow the prefab and modular housing industry, plus $4.7 million for a voluntary national certification process.

This followed November's $900 million National Productivity Fund, which included specific incentives for states to accelerate prefabricated housing adoption, and an additional $120 million in National Productivity Fund competition payments to fast-track prefab housing.

Industry Development Specialist Lance Worrall emphasises the strategic importance of this recognition: "Smart Building is now explicitly recognised within the National Housing Accord, and in the Future Made in Australia industry programs. Furthermore, the 2025 election delivered a definitive outcome that implies the government can act with greater urgency."

The Australian Building Codes Board has also responded with new national standards for offsite construction, addressing design, approvals, production, and performance requirements—alongside a framework for manufacturer certification that could deliver a $2.9 to $5.7 billion boost to the national economy.

State-by-State Victories Build Critical Mass

Perhaps even more impressive than federal recognition is the systematic state-by-state adoption of Smart Building priorities. Queensland has set a 50% MMC target for government projects while preparing for the 2032 Olympics build.

At the conference, Assistant Minister for Planning, Housing and Better Regulation, The Hon Rebecca Young, announced that a dedicated MMC sub-group would be added to the Queensland Building Ministerial Advisory Council (BMAC). This provides Modern Methods of Construction with focused attention within an influential reform body where prefabAUS already serves as a council member.

New South Wales launched a $10 million Modular Housing Pilot with Pattern Book fast approvals for modular construction.

Victoria committed $50 million to a Future of Housing Centre of Excellence, Western Australia allocated $50 million to its Housing Innovation Program, and both South Australia and Tasmania established dedicated MMC social housing programs.

The financial sector has also shifted dramatically. CommBank now offers prefab-specific products allowing 80% contract price access before home installation—a crucial breakthrough that addresses the sector's unique procurement requirements. A Federal Treasury Working Party is actively addressing remaining MMC finance barriers.

Innovation Hub Network: From Strategy to Reality

The momentum extends beyond policy recognition to tangible infrastructure development. The Melbourne Polytechnic Future of Housing Construction Centre of Excellence represents a $50 million Commonwealth-State co-investment that will become Australia's first national MMC training and applied research facility.

Worrall describes the facility's significance: "It will deliver MMC workforce skills within purpose-built facilities, demonstration equipment and Industry 4.0, including a holographic training suite, digital design labs and modular construction workshops."

This centre anchors an emerging national Innovation Hub network. New South Wales features a $400 million BlueScope-TAFE partnership developing 200 hectares in the Illawarra for education, training, and industrial development, potentially creating 30,000 jobs. South Australia is developing an MMC node at the Tonsley Innovation Precinct—the former Mitsubishi auto assembly site—featuring a Cross Laminated Timber facility focused on robotics and automation testing.

Queensland is exploring similar development at the Sunshine Coast University's Moreton Bay campus, while all nodes operate under a national partnership agreement ensuring coordinated development.

Manufacturing Mission: Building the Future Here

For prefabAUS leadership, this momentum represents more than industry development—it's about Australia's economic future. Worrall frames the choice starkly: "Smart Building is more than manufacturing and production, but make no mistake: there is no Smart Building without a strong, capable onshore manufacturing sector."

The organisation warns against what it terms "Stupid Building"—a race-to-the-bottom scenario involving basic imports that would "reinforce inequality" rather than counter it, delivering environmental mediocrity instead of climate-effective solutions.

"The future for Australian Smart Building is a future built here, manufactured here," Worrall emphasises. "We will not have a Smart Building future unless it is A Future Built in Australia."

The mission encompasses productivity, affordability, speed, climate and resource efficiency, quality and mass customisation, social inclusion, and industry development—all delivered through offsite factory production using digital manufacturing.

Strategic Coordination Creates Compound Impact

PrefabAUS's approach demonstrates sophisticated strategic thinking. Rather than attempting everything simultaneously, the organisation's ten-year roadmap targets actions that build momentum over time. The "Building the Future We Want" strategy operates as both "a map of where we have been and where we are today, and a compass pointing us to where we need to go," according to Crough.

The coordinated approach is delivering compound benefits. Federal recognition enables state programs, which create demand for Innovation Hub development, which builds manufacturing capability, which supports workforce development—creating a virtuous cycle of sector growth.

The Momentum Accelerates

As Year 3 of the decadal strategy begins, prefabAUS challenges the sector to accelerate engagement across investment, advocacy, collaboration, and innovation. Crough's assessment captures both achievement and ambition: "Our campaign has taken Smart Building and MMC from Nonrecognition, to Recognition to making critical Investments, to Implementation, starting Year 3."

The momentum is undeniable. With $174 million in federal commitments, systematic state adoption, emerging Innovation Hub infrastructure, financial sector engagement, and national standards development, Australia's Smart Building sector has achieved systemic transformation in record time.

As Worrall concludes: "A future built in Australia starts here, starts now, starts with you, and with all of us. Now is the time to come together to seize the opportunities and build more momentum."

The question is no longer whether Modern Methods of Construction will transform Australian building. The question is how quickly the sector will embrace the future that prefabAUS has systematically created.