Up to $4 million will be granted by the State Government to support the restart of operations at the Austral Brickworks site in Cardup, which has been inactive since 2023.
The decision has been made in order to boost domestic brick supply given the strong growth in demand for new homes in Western Australia, following recent years’ reduction in building activity.
The recommissioning of the shuttered facility is currently projected to boost the State’s brick production by about 10-15 per cent once operational.
The $4 million in assistance will comprise of a $3 million upfront contribution to support recommissioning, including repairs and maintenance to the facility. A further $500,000 incentive payment to resume operations by March 2027 will be issued and a $500,000 incentive payment to deliver 17 million Maxibricks within 12 months of the restart of operations.
The Department of Water and Environmental Regulation will also work with Brickworks to finalise updates to the licence, including a potential 10-year extension for the operations.
The Cardup brickworks were mothballed in April 2023, having also closed and reopened in both 2012 and 2019. Since 2023, housing commencements have grown to over 24,200 homes.
This includes around 19,500 detached homes, up more than 50 per cent over this period, which has driven strong demand for bricks, given that Western Australia has by far the highest proportion of new double brick homes being built in the nation.
The recommissioning of the Cardup facility is in addition to further measures being undertaken by Midland Brick to increase capacity through its existing operations at South Guildford and Middle Swan.
The WA building industry is currently receiving further grants to boost capacity for other modern methods of construction, including $49 million through the Housing Innovation Fund, including increased production of framing and roof trusses, modular homes and housing components, as well as $48 million for two new Advanced Manufacturing Facilities to boost production of prefabricated medium and high-density apartments.
“We welcome this pragmatic decision to increase brick supply and provide greater certainty for builders and their clients,” Master Builders CEO Matt Moran said.
“Our focus must remain on increasing supply as quickly as possible, while supporting builders who are already dealing with significant cost and supply pressures.
“Increasing local brick production is an important step, and we will continue working with the State Government and industry on solutions to support builders and their customers.”
Housing Industry Association Executive Director Michael McGowan said he is also optimistic about the potential of Cardup Brickworks following its reopening.
“It is fantastic to see Brickworks restarting its manufacturing operations in Western Australia at a time when housing demand remains exceptionally strong,” he said.
“With a substantial pipeline of work set to deliver more than 20,000 homes for Western Australians, additional brick supply will play an important role in meeting demand and reducing construction delays.
“Increased brick availability not only helps get homes completed sooner, but it also provides continuity for the trades and businesses that have worked tirelessly over the past four years to deliver the homes our State so desperately needs.”
Mr McGowan has nonetheless warned that, while today’s announcement would provide welcome support, the industry still has a challenging 12 months ahead to deliver the thousands of homes already in the pipeline as it waits for the additional brick supply to make an impact.
“The new supply from Cardup will be welcomed by builders and customers alike, however, it will take time for that capacity to flow through the system,” he said
“We recognise that many customers are eager to move into their new homes, and we encourage them to work closely and constructively with their builder as the industry navigates ongoing supply challenges.”
