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.

Learn about how anti-competitive conduct affects the construction industry.

Licences and permits


State, territory and local governments manage the licences and permits for the construction industry.

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 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.

Learn more about the GST requirements for the building and construction industry.

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 our checklist to work out what to do when you haven't been paid.

Find out what to do when you're in debt, from assessing your financial situation through to getting help.

Grants


Grants for the construction industry may be available if you:

Find grants and programs 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.

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:

Check out WHS advice for the construction industry, including WHS duties and how you can manage risks.

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.

Find mental health and wellbeing support, tips to help manage and reduce stress and advice on creating a healthy workplace.

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.

Read about the different types of insurance for business.

Find Support


If you need advice or support, consider getting help from your industry association, a business adviser, accountant or legal professional.

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