Trust legislation more lead in the saddle for small business

14 October 2026

Master Builders Australia says newly introduced trust legislation has failed to address the significant concerns raised by small building businesses throughout the consultation process.

CEO Denita Wawn said despite clear industry evidence of the need to change course, the Bill before the parliament provides no meaningful relief.

“No common ground has been found. This legislation reflects a complete lack of practical understanding of the cumulative pressures the Government is placing on small businesses at the moment,” Ms Wawn said.

“Builders want to get on with the job of building homes, but every business we speak to says the administrative burden is growing and it is getting harder to operate. 2026 will go down as the year of lead in the saddle for small business.

“While some changes have been made since the original Budget announcement, businesses are still being forced to choose between reduced flexibility and costly restructuring. Around one in five small building businesses operate through a trust structure.

“Many builders will be forced to choose between paying significantly more tax or undertaking a costly and complex restructure to establish an entirely new entity, potentially creating implications for important consumer protections such as statutory warranties.”

A recent survey found 60 per cent of small and medium residential and commercial developers expect this policy will affect the timing or viability of their projects. Of those, 37 per cent said one or more projects would be cancelled altogether.

“These small builders did everything right. They followed the rules, acted on professional advice and built their businesses accordingly. Now they’re being punished for it,” said Ms Wawn.

“At a time when Australia is facing a housing supply crisis, these changes will hamstring many of the businesses needed to deliver new homes. The consequences will not be limited to builders. They will ultimately flow through to home buyers, renters and the broader economy.”

Master Builders Australia is calling on Parliament to amend the legislation by grandfathering existing businesses or, at a minimum, introducing a dedicated small business carve-out.

The current Bill should also be referred for a Parliamentary Inquiry.

Media contact: Dylan Hafey, Adviser, Media & Government Relations

0497 330 064 | dylan.hafey@masterbuilders.com.au