Key points:

• 140 NSW construction firms went insolvent in June 2026.
• Across the country 339 building businesses became insolvent in 2026.
• 1.7% fewer NSW construction firms became insolvent in the 2025/26 than the previous year. 

The latest insolvency data presents a mixed picture for the construction industry.

Nationally, June 2026 was a particularly difficult month, with 339 construction businesses entering external administration. Of those, 140 were based in New South Wales, highlighting the ongoing pressures facing builders and subcontractors across the state.

However, there are also some encouraging signs emerging from the longer-term data. The latest figures confirm that 2025-26 was the first financial year since 2020-21 to record a decline in construction industry insolvencies nationally. In NSW, the number of building businesses entering external administration fell by 1.7 per cent compared with the previous 12 months.

The data shows that fewer construction firms became insolvent during 2025-26 than in 2024-25, marking the first annual improvement the industry has experienced in five years. While this is a welcome development, insolvency levels remain historically high.

Construction continues to account for a disproportionate share of business failures across the economy. During 2025-26, the industry represented almost one quarter (24.5 per cent) of all insolvencies, with 14,152 businesses across the Australian economy entering external administration during the year.

Historical trends underline the severity of the challenges the industry has faced in the post-COVID period. Escalating costs, labour shortages, supply chain disruptions, rising interest rates and ongoing pressures on project margins have combined to place many businesses under sustained financial strain

Total number of construction businesses entering external administration by financial year 2013-14 to 2025-26

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