Building and construction industry
Last Updated: 07 April 2021
Business types in this industry
The types of businesses operating in the industry range from:
- 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 scope of work carried out includes:
- residential and non-residential construction
- renovations and extensions
- building structure services
- installation services
- heavy and civil engineering
- land development
- site preparation
Our professional services industry information is relevant to you if you are an architect.
COVID19 support
If your business has been affected by COVID-19, you can find financial assistance and support on our coronavirus information and support page.
COVID-19 work health and safety for your industry
It’s important to keep workers safe and limit the spread of COVID-19. You can find the latest information and resources for your industry on the Safe Work Australia website.
COVID-19 support in your state or territory
Legislation, standards and initiatives
You must be aware of the laws that apply to the building and construction industry. Key legislation includes:
- 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 building and construction industry.
Licences and permits you may need
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.
Taxation
The building and construction industry have 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 building and 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 building and construction industry need to report to the ATO the total payments they make to each contractor for building and construction services each year.
Finance
Recover money owed to you
Security of payment laws apply to building and 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.
- Read the Security of Payments information on the Australian Building and Construction Commission website.
Find out what to do when you haven't been paid. This information covers:
- debt collection
- dispute resolution
- where to find help and advice
- legal action
Manage business debt
If your business is in debt and you want to get your finances back on track, read our information on what to do when you're in debt. We provide steps and advice to help you manage and reduce your debt, including:
- prioritising your debt
- how to deal with creditors
- where to find advice and help
Prevent unpaid debt
Simple steps can help you prevent disputes and unpaid debt by your creditors.
Other resources
The Australian Taxation Office provides a range of industry benchmarks which may be of assistance when setting up or managing your business. Visit ATO Benchmarks for Building and construction trade services to learn more.
Grants
There are very few grants available for the construction industry, unless you:
- employ and train apprentices or trainees
- build in a region encouraging growth
- build structures to support a community activity or event
Search Grants & Programs to find grants that may be relevant to the construction industry.
Employ people
If you employ staff, you need to comply with Australia’s national workplace laws specific to the building and construction industry.
Workplace health and safety (WHS)
All business must comply with general occupational health and safety regulations. The building and construction industry also has state specific WHS requirements. These include:
- induction cards (white card)
- asbestos training (ACT)
- approved clothing
- managing noise
- preventing falls
- electrical safety
- excavation work
- demolition work
- high risk building work
- sun safety and heat stress
Builders must have accreditation under the Australian Government Building and Construction OHS 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 information@matesinconstruction.org.au.
You can find more organisations that provide information and support to help you with your health and wellbeing on the ATO website.
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 building and 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
Insurance
Alongside compulsory insurances, the building and 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
Government organisations
Open all
button toggle all accordionsFederal government organisations
State and territory government agencies
Government industry research
Further advice and assistance
Check our general business information for additional regulations and obligations relevant to your business.
For further advice and assistance, consider contacting your accountant, solicitor, business adviser or industry association.