As the Federal Budget looms, business leaders in building and construction have asked for measures to boost building confidence.

Builders say subdued investments and increased industrial action in Queensland have slowed the scene, Master Builders Australia (MBA) wants a pick-me-up.

The MBA’s latest national survey of building and construction shows builders' confidence has dipped in the quarter to March 2015.

Industrial relations tension in Queensland has been a major source of this concern – with disputes and strikes at the highest level since September 2013 due to ongoing Fair Work Building and Construction action.

“The 2015 budget and policy agenda must be about rebooting confidence as conditions elsewhere in the economy have the potential to drag down building and construction,” the survey said.

“Business remains extremely reluctant to invest. Despite signs of recovery, commercial building continues to suffer the effects of weak non-mining business investment despite low interest rates.

“Poor sentiment is affecting 'animal spirits', keeping a lid on investment needed to drive economic growth and generate jobs.”

MBA chief economist Peter Jones wants “temporary and targeted short-term tax concessions” to boost commercial activity.

“We are asking for these initiatives as insurance to ensure the economy continued to tick over while we are waiting for structural rebalancing to come to bear,” he told Fairfax Media.

“Parts of residential development are doing well but the wider economy [is] still vulnerable.”