Housing construction weakness exposes poor timing of Budget tax hikes
ABS data shows total construction rose 3.4% in Q1 2026, but new housing work fell 6.2%. Industry groups warn federal budget tax increases are poorly timed given the housing construction slowdown.
New housing construction work fell 6.2% in Q1 2026 according to ABS data
How will budget tax hikes affect builders during the housing construction slowdown?
Builders and related trades face reduced housing work opportunities while facing higher tax burdens, squeezing profit margins and potentially forcing job cuts in residential construction.
Key takeaways
- Total construction activity increased 3.4% in the first quarter of 2026
- New housing construction work declined 6.2% in the same period
- Federal budget tax increases coincide with weakness in residential building sector
- Industry concerned about profit margins and employment in housing construction
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