Wage ruling will increase housing costs and hit small builders hardest
The Fair Work Commission has increased minimum award wages by 4.75%, which the Housing Industry Association warns will raise housing construction costs and particularly impact small building businesses.
4.75 per cent increase to Minimum Award Wages
How will the 4.75% wage increase affect building costs?
Builders, especially small operators, will face higher labour costs that may be passed to clients or squeeze profit margins, potentially affecting project viability and competitive quoting.
Key takeaways
- Fair Work Commission has approved a 4.75% increase to minimum award wages for construction workers.
- The Housing Industry Association warns the increase will raise housing construction costs.
- Small building businesses are expected to be hit hardest by the wage rise.
- The wage increase may make it harder to deliver new homes at required scale.
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