Australia’s struggling construction industry is facing another setback, with fewer builders starting new homes.

Industry leaders say recent tax changes and rising costs are making it harder for builders to take on new projects.

New figures show housing approvals remain below the level needed to meet the Federal Government’s national housing target.

Construction groups warn the slowdown could worsen Australia’s housing shortage and push home prices and rents even higher.

They are urging the Government to reduce red tape, address labour shortages, and introduce policies that encourage more home building.

The latest figures add to growing concerns about the future of Australia’s housing supply and affordability.