Construction industry
Business types in this industry
The construction industry includes:
- trades people providing services direct to consumers
- trades people providing services to other building and construction businesses and government
- businesses providing small and large construction services to individuals and government
- businesses engaged in large construction projects
- businesses engaged in infrastructure project.
The type of work carried out by construction businesses includes:
- residential and non-residential construction
- renovations and extensions
- building structure services
- installation services
- heavy and civil engineering
- land development
- site preparation.
If you're an architect, our professional services industry information is relevant to you.
Industry Statistics
Industry research is an important part of planning for your business, it may help you identify:
- economic and industry trends
- establish or improve your business
- help you keep pace with your industry.
See statistics for the construction Industry on the Australian Bureau of Statistics (ABS) website.
The Australian Taxation Office provides industry benchmarks to help you compare your business's performance against similar businesses in your industry. Read about the benchmarks for building and construction trade services.
Check out the profile for the construction industry, on the Labour Market Insights website. This will give you an idea of what's happening in the Australian job market.
Legislation, standards and initiatives
It’s important that you are aware of the laws that apply to the construction industry including:
- Competition and Consumer Act 2010
- Australian Consumer Law (ACL)
- National Construction Code
- Disability (Access to Premises-Buildings) Standards 2010
- National Prequalification System for Civil (Road and Bridge) Construction Contracts
- Environment Protection and Biodiversity Conservation Act 1999
- Heritage protection
- National Native title Tribunal.
Licences and permits
State, territory and local governments manage the licences and permits for the construction industry.
- building licences
- plumbing licences
- gas fitting licences
- electrical licences
- development applications
- zoning approvals
- heavy vehicle licences
- obtaining a white card
- water usage or constructing a bore or well
- connection or work on sewerage/drain
- carrying out high risk work
- protecting trees and wildlife
- fire management and safety
- use of blasting explosives
- removal of asbestos
- use of public land
- work on heritage properties
- building energy efficiency
- disposal of waste
- handling, storage and use of chemicals or dangerous substances.
Find the licences and permits you need for your business
Search the Australian Business Licence and Information Service (ABLIS) to find information on the licences you may need.
Search nowTaxation
The construction industry has specific Goods and Services Tax (GST) measures. Know your GST obligations and register with the Australian Taxation Office (ATO) to ensure you can claim your GST credits.
Further taxation measures specific to the construction industry include:
- Personal services income (PSI)
- Taxable payments reporting.
Personal services income
If you’re a consultant or contractor, the income you receive for your skills, knowledge, expertise or efforts may be personal services income. The PSI rules affect what amounts you include in your assessable income and what deductions you can claim.
Taxable payments reporting
Businesses in the construction industry need to report to the ATO the total payments they make to each contractor for construction services each year.
Finance
Recover money owed to you
Security of payment laws apply to construction contractors in most states and territories. These laws provide a low cost adjudication process to recover money owed to you.
To find information on security of payment laws relevant to your state or territory:
- Use the Australian Small Business and Family Enterprise Ombudsman's Dispute Support tool.
Grants
Grants for the construction industry may be available if you:
- employ and train apprentices or trainees
- build in a region encouraging growth
- build structures to support a community activity or event.
Employ people
If you employ staff, you need to comply with Australia’s national workplace laws specific to the building and construction industry.
Use our checklist for small business owners to help you meet Australian laws when hiring an employee. We’ve also included some tips that might help you through the hiring process.
If you're ready to employ someone, create an employment contract tailored to the award and your business needs.
Workplace health and safety (WHS)
There are general work health and safety regulations for all businesses, however there are state and territory WHS requirements that apply to businesses in the construction industry:
Builders must have accreditation under the Australian Government Work Health and Safety Accreditation Scheme to enter into a contract with the Australian Government.
Health and wellbeing
Mates in Construction provides suicide prevention training and support to people in the construction industry. If you or your staff need advice or someone to talk to, contact Mates in Construction at info@mates.org.au.
Environment
Environmental conditions can dictate certain aspects of a construction project. You may need to check with your local authorities for information specific to your area. The main environmental issues that businesses in the construction industry should understand include:
- house energy ratings
- soil contaminated locations
- areas infected by a species (animal, plant, insect, or disease)
- flood prone areas
- bushfire prone areas
- tree management
- trade waste management and reduction.
The Department of Climate Change, Energy, the Environment and Water has tips for reducing your energy costs in their construction industry sector guide.
Insurance
Alongside compulsory insurances, the construction industry has specific insurances. These insurances include:
- domestic building insurance
- professional indemnity insurance
- public liability insurance
- structural defects/builders' indemnity insurance
- vehicle and heavy machinery insurance
- tools, plant and equipment insurance for tradespeople
- insurance for loss or damage to property in the course of construction.
Find Support
If you need advice or support, consider getting help from your industry association, a business adviser, accountant or legal professional.
We use cookies to give you a better experience on our website. Learn more about how we use cookies and how you can select your preferences.