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The 2026 Small Business Conditions Report was launched today in Canberra and is a survey of HIA members that work in all areas of the building sector and that identify as a small business.
“This report is not only a gauge of the level of sentiment in the small business sector but is also a measure of how the home building sector may be performing from 2026 onwards,” said HIA Managing Director, Jocelyn Martin.
“The report paints a clear picture of a small business sector under pressure, despite strong demand for new housing. Small building businesses are the engine room of Australia’s home building industry, but they are being asked to do more with less - facing rising insurance premiums, growing compliance obligations and planning delays that are stretching cashflow and eroding confidence.
“The survey found 68% of respondents have considered scaling back or closing their business due to red tape and compliance burdens, while almost three-quarters do not expect to take on additional staff in the year ahead.
“Planning delays are a major barrier to productivity, with 88% of small builders reporting approval timeframes exceeding eight weeks, and one in three experiencing delays of more than six months.
“For small businesses, time is money and lengthy approval processes mean higher holding costs, delayed starts and increased financial risk, which reduces the number of homes that can be delivered.
“The survey also highlights persistent workforce challenges, with 67% of small builders reporting difficulty recruiting or retaining skilled workers, limiting their ability to expand operations or take on new projects.
“Compliance pressures continue to mount, with more than half of small builders spending at least five hours a week on regulatory tasks, and nearly one-third spending more than ten hours.”
Other findings included:
“Streamlining planning systems, reducing compliance burdens and providing greater regulatory certainty would immediately improve productivity across the small business sector.
“Targeted support for apprentices, skills pathways and technology adoption would help small builders expand their workforce and lift output.
“With the right policy settings, small building businesses will play a central role in delivering more homes, faster, but without reform housing supply will continue to fall short,” concluded Ms Martin.
The Federal Government has announced that the Australian Taxation Office (ATO) will continue to accept credit card payments for tax liabilities until the end of the 2026-27 financial year, delaying changes that were previously due to take effect on 1 December.
The Housing Industry Association (HIA) welcomes the Federal Government's stepping in and agreeing to delay the Australian Taxation Office's (ATO) proposed ban on credit card payments, providing builders, tradies and suppliers with much-needed breathing space while a longer-term solution is developed.
The Housing Industry Association (HIA) says the Victorian results in the HIA National Housing Accord Update released yesterday, while not as poor as some other states, highlight the urgent need for a reset in housing policy after the upcoming state election.
HIA’s annual Safety Summit is being held today in Adelaide (8 October) and will bring together industry leaders, regulators and workplace safety experts, providing practical guidance to help residential builders and tradies create safer worksites and support compliance in an ever-changing world.