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.
Related
Increases to annual minimum wage
Fair Work Commission has increased the national minimum wage and modern award minimum wages by 4.75 per cent in its Annual Minimum Wage decision announced today.
Why it matters: Affects all trade businesses including plumbers, electricians, builders, and HVAC technicians who employ award-rate workers. Will increase labour costs and may require adjustment to quotes and pricing.
Approvals reflect good momentum heading into 2026
Building approvals fell 3.4% in April, with detached houses down 0.9% and multi-units down 7.2%. HIA's Senior Economist Tom Devitt reported the figures.
Why it matters: Builders and carpenters should expect slightly reduced work pipeline in coming months as fewer new projects get approved across both house and apartment sectors.
2026 review of the Workers Compensation and Rehabilitation Act 2003
A 2026 review of Queensland's Workers Compensation and Rehabilitation Act 2003 is underway, with focus on balancing system improvements against impacts on housing affordability and industry sustainability.
Why it matters: All Queensland tradies (builders, plumbers, electricians, carpenters) will be affected as workers comp reforms could change insurance costs and claims processes, directly impacting business overheads and job pricing.