Engineers Australia has called on the Federal Government to prioritise manufacturing capability alongside engineering, infrastructure productivity and skills reform in the 2026 Budget, arguing that stronger foundations are needed to support long-term economic growth and competitiveness.
In a statement accompanying its 2026 Pre-Budget Submission, Engineers Australia said manufacturing is among the key sectors dependent on engineering capability and warned that without policy action Australia risks falling behind globally on productivity, resilience and competitiveness.
The peak body, which represents more than 140,000 engineers, outlined seven reforms it described as practical and cost-effective, aimed at strengthening the engineering workforce, improving infrastructure delivery and ensuring taxpayer-funded projects, including those supporting manufacturing, deliver long-term value.
Engineers Australia Chief Executive Officer Romilly Madew AO said engineering plays a central role in Australia’s economic performance, including its manufacturing base.
“Engineering is the backbone of Australia’s STEM workforce and underpins almost half of our economic value add,” Madew said.
“If Australia wants to lift productivity, deliver housing and infrastructure faster, and compete globally, we must invest in engineering capability and remove the barriers holding it back.”
According to Engineers Australia, Australia has more than 450,000 engineers, with engineering accounting for 45 per cent of business expenditure on research and development and contributing across infrastructure, energy, manufacturing and technology.
A key recommendation in the submission is the introduction of a nationally consistent registration scheme for engineers, replacing the current system of eight separate state and territory regimes.
Engineers Australia said this would improve workforce mobility, reduce regulatory complexity and align Australia with international best practice.
“A national registration scheme would improve workforce mobility, reduce red tape, strengthen public safety and align Australia with international best practice,” Ms Madew said, describing it as a productivity reform with benefits for government, industry and the community.
The submission also addresses productivity across the nation’s $213 billion public infrastructure pipeline, calling for measures such as digital-by-default delivery, standardised documentation, modern methods of construction, circular economy principles and enhanced workforce training, all of which Engineers Australia said would support more efficient outcomes for sectors including manufacturing.
Engineers Australia further urged the Government to use the current pause in the National Construction Code to deliver more streamlined regulation and to fund free public access to standards incorporated into legislation.
It said this would improve compliance and competitiveness, particularly for small and medium-sized businesses.
To address skills shortages identified across all states and territories, the organisation recommended a national approach to growing engineering capability.
Proposed measures include extending Commonwealth Prac Payments to engineering students, setting a target of 60,000 additional engineering graduates by 2035.
The submission also calls for the appointment of a National Chief Engineer to provide independent technical advice across government, with Engineers Australia arguing this would reduce project risk and improve value for money in major investments.
“With fewer engineers in the public sector and increasingly complex infrastructure challenges, embedding senior engineering expertise in government is essential,” Madew said.
In addition, Engineers Australia recommended reforming road user charging to establish what it described as a fairer and future-ready funding model for transport infrastructure, drawing on international best practice.
“These reforms are practical, achievable and focused on lifting productivity and prosperity for all Australians,” Ms Madew said.
“The 2026 Budget is a critical opportunity for government to clear obstacles so that engineers can do what they do best, helping secure a more productive and prosperous Australia.”
