Australia has set ambitious sustainability targets, including doubling its circularity rate of 4.6% and reducing greenhouse gas emissions to 42.7% below 2005 levels by 2030. The construction industry (CI) is both the largest generator of waste and a major contributor to carbon emissions. Circular Business Models (CBMs) and Nature-based Enterprises (NBEs) offer promising solutions, where CBMs aim to close resource loops through circular economy (CE) strategies, while NBEs apply Nature-based Solutions (NbS) to generate economic and ecological value. Yet, business transition towards CBMs and NBEs in construction remains limited. Prior research identifies inadequate financial and policy support as critical barriers. This exploratory study aims to addresses this gap in Australian literature by reviewing national and state-level policies and initiatives introduced since 2015 that promote CE and NbS implementation. The policy review identified 22 initiatives aimed at supporting net-zero emissions and the implementation of NbS. However, none were specifically targeted toward facilitating NbS adoption within the CI. Of these, 9 initiatives were voluntary, highlighting the need for stronger regulatory mechanisms to optimise impact. In relation to CE strategies, 6 national and 10 state-level CE policies and initiatives were reviewed. Notably, 9 out of 10 state-level initiatives were voluntary. National CE policies predominantly focused on packaging, fast-moving consumer goods (FMCG), and manufacturing sectors, with CI only addressed tangentially despite its significant environmental footprint. State-level policies, by contrast, demonstrated a comparatively greater focus on the CI. Nevertheless, only 3 national and 4 state-level policies provided direct or indirect economic incentives, highlighting a critical gap in business support and market enablement. The findings offer practical insights for policymakers and industry stakeholders to advance sustainable construction practices. This study supports Sustainable Development Goals 11 (Sustainable Cities and Communities) and 13 (Climate Action) by advancing policy-driven pathways for circularity and carbon reduction in CI.