Housing construction weakness exposes poor timing of Budget tax hikes
How will budget tax hikes affect builders during the housing construction slowdown?
ABS data shows total construction rose 3.4% in Q1 2026, but new housing work fell 6.2%. Industry groups warn federal budget tax increases are poorly timed given the housing construction slowdown.
New housing construction work fell 6.2% in Q1 2026 according to ABS data
Why it matters
Builders and related trades face reduced housing work opportunities while facing higher tax burdens, squeezing profit margins and potentially forcing job cuts in residential construction.
Key takeaways
- Total construction activity increased 3.4% in the first quarter of 2026
- New housing construction work declined 6.2% in the same period
- Federal budget tax increases coincide with weakness in residential building sector
- Industry concerned about profit margins and employment in housing construction
Related
Update The Federal budget and Housing Supply
The 2026 Federal Budget introduces major housing taxation changes. HIA Chief Economist Tim Reardon has commented on the expected impacts for housing supply across Australia.
Why it matters: Tax changes affecting housing supply could shift project pipelines and workload availability for trades businesses.
Statement on the appointment of New CFMEU Administrator
The Fair Work Commission has appointed Michael Crosby as the new CFMEU Administrator. Master Builders Australia has acknowledged the announcement.
Why it matters: A new CFMEU administrator could affect enterprise bargaining and on-site union activity for building contractors.
Master Builders' policy proposals to improve housing affordability
Master Builders Australia has submitted policy recommendations to a Select Committee aimed at improving housing and rental affordability. The proposals focus on industry-level changes to address Australia's housing supply and cost challenges.
Why it matters: Policy changes from this submission could affect project pipelines, regulations, and costs for builders nationwide.