A recent report warns that Australia’s construction and fit-out waste could reach $64 billion over the next five years unless it urgently course-corrects.
The report, Australia’s Waste[d] Opportunity 2025, revealed the average building project wastes 141 kilograms of material per square metre – the equivalent of a fully-stocked fridge for every square metre constructed.
The report, developed by Coreo in partnership with the Green Building Council of Australia (GBCA), and funded by the Clean Energy Finance Corporation (CEFC) and the Bradfield Development Authority, calls for immediate action to improve the way the property sector designs, builds and recovers resources.
“Reducing material waste is a win for Australia’s circular economy,” CEFC head of Property Michael Di Russo says.
“By rethinking material selection, increasing circularity and reusing materials, we can reduce emissions, save money and build stronger supply chains. These benchmarks help the industry make better decisions – backed by data, not guesswork.”
The scale of the problem
While 83 percent of projects reported landfill diversion rates over 90 percent, actual recovery rates for materials like plastic were as low as 14 percent, according to the report.
Nearly a quarter (22 percent_ of materials used to construct a typical apartment never make it into the final building – costing owners an estimated $52,000 per apartment.
The report finds that the most commonly wasted materials are typically high-cost and high-impact. Concrete, masonry and tiles accounted for the largest volume of discarded material, followed by excavated soil, timber offcuts, metals and plasterboard.
These are typically over-ordered, mishandled or discarded during installation.
“Green Star projects have led the industry in transparency, but this data shows that even high-performing developments are being held back by inconsistent reporting and broken waste systems,” GBCA chief impact officer Jorge Chapa says.
“It’s time to shift from measuring what’s diverted from landfill to tracking where materials actually go – and how much we’re losing along the way.”
Coreo CEO Ashleigh Morris terms the current predicament of the industry as a “tools-down moment” for the sector. “When we cut a length of timber and discard the remainder, we’re not just losing materials – we’re throwing away profit margins,” Morris says.
The report provides an action plan to help the industry cut costs, reduce emissions and recover more value from materials.
The report includes national benchmarks for material waste per square metre for new builds and fitouts.
It also has a new ‘leadership challenge’ under Green Star to reward projects that avoid waste altogether. The report advocates for mandatory waste reporting requirements for all Green Star Buildings projects from 2027.
It also includes freely available templates and tools to help project teams measure, track and report material flows with greater accuracy. It offers practical guidance for improving design, procurement and recovery across the building lifecycle.
Read more: Victorian households opting for ceiling insulation to be rewarded
