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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.
New federal anti-money laundering and counter-terrorism financing laws (AML/CTF laws) will take effect from 1 July 2026.
Housing Industry Association (HIA) has welcomed the Tasmanian Government’s commitment to set the First Home Owner Grant for new homes to $20,000, saying the measure will provide meaningful support to first home buyers while underpinning confidence in the state’s residential construction sector.
HIA successfully lobbied for an expansion of fast-track planning approvals in NSW. Now the NSW Government is proposing to introduce two new planning pathways designed to streamline the assessment process for for low rise residential development. These new pathways are part of the NSW Government's planning system reforms.
“New home sales in the month of April increased by 4.9 per cent despite rising interest rates and domestic and global uncertainty,” stated HIA Chief Economist Tim Reardon.