Construction Industry Fact Sheet

This fact sheet provides an overview of the legal, operational and business issues relevant to the construction industry, which includes businesses in residential and non-residential construction. It includes services such as building structure, installation, heavy and civil engineering, land development and site preparation. You may also be interested in our Professional services industry fact sheet for information relevant to architects.

As well as the information in this factsheet, you should see our Business topics for additional regulations and obligations relevant to your business, in particular our Independent contractors topic. For further advice and assistance, contact your accountant, solicitor or business advisor.

See our topics on this page for detailed information on the construction industry:

Research

Industry research is an important part of planning for your business. It may uncover economic and industry trends, establish or improve your business and help you keep pace with your industry.

Key government sources for industry specific statistics on the construction industry include:

Australian Bureau of Statistics (ABS)
The Construction section of the ABS website provides information such as the rate of building approvals, the amount of building work done and the type of work done. All these figures are available on of the topics at a glance.
Australian Workforce and Productivity Agency (AWPA)
The Australian Workforce and Productivity Agency’s Construction Industry snapshot contains statistics and information on the recent growth and current trends of the industry.

Key legislation & initiatives

Legislation often plays a large part in how you run your business, so it’s important to be aware of the laws that apply to your industry. Key legislation that may affect businesses in the construction industry includes:

Competition and Consumer Act 2010
Australian Consumer Law (ACL)
National Construction Code (includes Building and Plumbing codes)
The National Construction Code Series for 2015 is now available as a free download.
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
Native title legislation
State Building Acts.

You can have your say on government policy and regulation affecting the future of your industry by registering on the Business consultation website.

Licences & permits

Licences and permits specific to the construction industry are often managed by state or territory governments and mainly relate to:

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.

Search the Australian Business Licence and Information Service (ABLIS) website to find out what licences and permits you need for your industry.

Employment

If you employ staff, you need to comply with Australia’s national workplace laws and the specific requirements in your industry:

Visit the Fair Work Ombudsman website for awards specific to your industry.
Find answers to your workplace enquiries or issues by contacting Fair Work Building and Construction.
See our Employing people topic for further information on employment rights and obligations.

Contractors

The building and construction industry often use contractors to perform specialist skills such as plasterers, concreters, draftspersons, bricklayers, electricians and plumbers. For tax, workers compensation and superannuation purposes it’s important to be clear about whether these specialists are hired as an employee or a contractor. Use our independent contractors decision tool to help you determine the employment status of your workers.

Apprentices and trainees

With flexible hours and on the job training, the construction industry lends itself easily to taking on apprentices and trainees. If you take on an apprentice or trainee, you can access a range of government support and financial help. See the Australian Apprenticeships Centre website to find out more.

Finance & tax

There are a number of finance and tax measures specific to construction businesses, including:

Personal services income (PSI)
If you’re a consultant or contractor, the income you receive for your skills, knowledge, expertise or efforts may be classified as PSI. The PSI rules may 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 Australian Taxation Office (ATO) the total payments they make to each contractor for building and construction services each year.

To find more finance and tax guidance, take a look at:

Record keeping in the plastering industry , for advice from the ATO about what records primary producers need to keep
the Building and construction page on the ATO website for specific tax details for your industry
our Taxation topic, for general taxation information
our Business finances topic, for more detailed information on how to manage your finances.

Levies & charges

Levies and charges are largely used to fund activities that benefit the construction industry and its workers, such as improved skills, increased safety and better leave entitlements.

The main levies that apply to the building and construction industry are payable at the state or local government level and vary between states. Some examples of levies in Australia include long service leave levy, industry training levy and industry waste or landfill levies.

Contact your state government department or local council for further information on levies applicable in your state. Search our Directory of government and business associations for council or state government contact details.

Grants

There are very few grants available for the construction industry, unless you are:

employing and training an apprentice or trainee
building in a region encouraging growth
building structures to support a community activity or event.

Search our Grant finder to find more grants and assistance programs for the construction industry.

Workplace Health & Safety (WHS)

As well as the general occupational health and safety regulations, there are also some state-specific WHS requirementsrelevant to the construction industry, including:

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 that wish to enter into a contract with the Australian Government need to also be accredited under the Australian Government Building and Construction OHS Accreditation Scheme

Need help understanding your WHS obligations? Try these government resources:

for information specific to the Construction industry as well as comprehensive information on WHS regulations, Visit the Safe Work Australia website.
For details on your general health and safety obligations, visit our Workplace Health and Safety topic.
For state specific occupational health and safety information, see your state or territory workplace health and safety agency.

Insurance

As well as compulsory insurance such as workers compensation, there are also a number of specific insurance options required of businesses in the construction industry.

In most states, builders must be licenced and must obtain specific insurance cover before they can obtain a licence. Insurance requirements often vary depending on your business type and state licensing requirements, but can include:

domestic building insurance
professional indemnity insurance
public liability insurance
structural defects/builders indemnity insurance.

Additional insurance options available to businesses in the building and construction industry include:

vehicle and heavy machinery insurance
tools, plant and equipment insurance for tradespeople
insurance for loss or damage to property in the course of construction.

Visit our Insurance topic for details on general insurance options for business.

Intellectual Property (IP)

As well as trade marks, there are other IP rights that may be relevant to construction businesses:

Design protection (e.g. for the design of machinery)

IP Australia is the federal government agency responsible for granting rights in patents, trade marks and designs. Visit the IP Australia website to find out more about your IP options.

Industry training

Industry training can be an important part of your business survival. New construction methods or safety practices can often help improve your business and save lives. Need some help getting started?

Obtain your Construction industry white card
Complete asbestos awareness training if you work in the ACT. From the 1 July 2014, all building and construction workers who will be working with asbestos are required to complete asbestos awareness training. For a full list of occupations and your employer obligations, access Worksafe ACT’s Guidance Note on Asbestos Training .
If you are a qualified tradesperson and you wish to move interstate, visit the Licence Recognition website to learn how to transfer your qualifications.
See our Skills & training topic for tips on training yourself and your staff.
Search our Event finder to find government events, seminars, training courses and workshops.

Environment

Environmental conditions can often dictate certain aspects of a construction project. Learning how to work within these conditions and also reduce your impacts on the environment can often greatly improve your success. Some of the main environmental concerns that businesses in the construction industry should be aware of include:

House energy ratings
soil contaminated locations
aeas infected by a species (animal, plant, insect, or disease)
flood prone areas
bushfire prone areas
tree management
trade waste management and reduction.

Visit our Environmental management topic for detailed information and advice. Search the Australian Business Licence and Information Service (ABLIS) website to find specific licences and permits relevant to these environmental concerns.

Key government organisations & websites

The key federal government agencies and websites relevant to the construction industry include:

The key state government agencies relevant to the construction industry include:

ACT

NSW

NT

QLD

SA

SA Consumer and Business Services (for licensing and of tradespersons)
SA Department of Planning, Transport and Infrastructure
Safe Work South Australia

TAS

TAS Department of Justice (for licensing and accreditation of tradespersons)
WorkSafe Tasmania

VIC

VIC Department of Transport, Planning and Local Infrastructure (for planning applications and building policy)
Victorian Building Authority
Energy Safe Victoria(electrical & gas professionals)

WA

WA Department of Planning
WA Building Commission
WA Plumbers Licensing Board
WA Energy Safety (Includes electrical & gas fitters licensing).

Key advisors

Business advisors can be a valuable tool when establishing and developing your business in your industry. Search our Advisor finder tool to find one near you.

Industry groups

You may also wish to consult with an industry association or group for more information and advice on your industry. Search our Directory of government and business associations to find one relevant to your business.

Useful topics

Topics that may be particularly relevant to the construction industry include: