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Competition law, collective bargaining and contractors
HIA’s Position statement
- HIA opposes collective bargaining by independent contractors and small business under competition laws, workplace laws and commercial laws. Such arrangements:
- can be anticompetitive;
- risk treating contractors as employees;
- risk confusing the independent status of contractors;
- can threaten housing affordability;
- can invite collectivism and interference in commercial and contracting arrangements; and
- encourage/enable union participation in the residential building industry.
Background
- Traditionally collective bargaining has only been lawful when exercised by employees in the context of the industrial relations system through unions.
- Collective bargaining by employed workers is not subject to the Competition and Consumer Act (CCA). On the other hand, contractors and other small businesses are subject to the anti-competitive conduct provisions of the legislation. These prohibit price fixing, cartels and other behaviour that would substantially lessen competition.
- In order to be able to use collective bargaining, contractors and small businesses can seek prior approval from the ACCC, which considers the public benefits against public detriment.
- It is argued that collective bargaining allows firms to share these negotiating costs, improving the level of negotiation and achieving outcomes that would not have otherwise been achieved, while also addressing an imbalance in bargaining strength.
- However, this increases the potential for anti-competitive coordination between members of the bargaining group, creating distortions that can harm competitor businesses that are not part of the bargaining group.
- The efficiency created by independent contracting is a key strength of the residential building industry, and if trade contractors were to be able to routinely collectively bargain, there would be an adverse impact on not only contractor independence, but also housing affordability.
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Minimum Financial Requirements
HIA provided a submission in response to the Minimum Financial Requirements: Consultation paper on new regulations to promote financial sustainability in the building industry and the Draft Building Amendment (Minimum Financial Requirements) Regulations 2026.
Brisbane City Plan 2014 Major Amendment Package 'More Homes, Sooner'
HIA provided feedback on the ‘More Homes, Sooner’ Amendment Package. HIA continues to support amendments to the Brisbane City Plan 2014 which will improve the commercial viability of small-infill housing projects in Brisbane.
Review of the Amended Unfair Contract Terms Protections
HIA responded to the Consultation Paper on the Review of the Amended Unfair Contract Terms Protections. The Consultation Paper canvasses a range of matters associated with the expansion of the UCT provisions in 2023 for consumers and small businesses.
Climate Change and Natural Hazards State Environmental Planning Policy – Explanation of Intended Effect
HIA commented on the Climate Change and Natural Hazards State Environmental Planning Policy Explanation of Intended Effect (February 2026), a submission to NSW Government.
Review of the Residential Building Work Contracts and Dispute Resolution Regulations 2016
HIA provided feedback on the proposed review of the Residential Building Work Contracts and Dispute Resolution Regulations 2016.
UNINSURED, UNBUILT - how Australia's small business crisis is adding risk and costing us homes
HIA has provided Federal Parliament with our submission, 'UNINSURED, UNBUILT - how Australia's small business crisis is adding risk and costing us homes, to the Small Business Insurance Inquiry currently underway. Our message is clear: the progressive failure of the system is a direct and material constraint on the construction of new homes: it is greatly contributing to homes not being built.