Building Industry

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The COAG meeting of state and territory leaders with the Prime Minister presents a golden opportunity to bring the VET sector back into the frame of Australia’s education system.
Vocational education and trade training must receive the same recognition as other education pathways.
The VET sector has always underpinned the delivery of a skilled trade workforce in Australia.
It is vital for Australia’s residential building industry that governments come together and heed the warnings of industry and business regarding the challenges facing the VET sector, to reach a cooperative agreement on reforming and improving the VET sector.
For too long our VET sector has been regarded by both governments and communities as being inferior to the university sector. Nothing could be further from the truth.
Australia needs both sectors to be strong and efficient. Building a career in a skilled trade is just as important an opportunity as building a career as a doctor or a lawyer.
The building industry offers a range of jobs, onsite and offsite, which rely on training being available through both VET and university education.
As pointed out today by NSW Premier, Gladys Berejiklian, there needs to be a holistic approach to tertiary education. Committing to a policy framework where the VET sector is afforded rightful equal status with the university sector is a crucial early step to achieving success.
Vocational Education and Training is on the COAG agenda tomorrow. The Federal Government brings to the table a starting commitment in the form of its $525bn Skills Package announced in the April budget, while the Joyce Review into the VET sector provides a comprehensive foundation for discussion.
In discussing the challenges facing the VET sector a cooperative strategy and way forward needs to emerge from the COAG meeting. From there government consultation with industry can create a platform for success in co-designing a refreshed VET sector that provides the residential building industry and the broader economy with the skilled workforce required to match the jobs that need to be filled.
KRISTIN BROOKFIELD is the HIA Chief Executive of Industry Policy
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VET agreement essential to renew focus on trade training: HIA's Kristin Brookfield

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GUEST OBSERVATION
The agreement by Building Ministers to establish a national approach to the implementation of the Shergold-Weir Report will assist the building industry, governments and the community to move forward with greater certainty and provides a significant recognition that a nationally consistent approach to improve community confidence in the building system is needed.
Whilst each state needs to take on board the recommendations of the Shergold-Weir report in a way that suits their existing regulatory frameworks, it is important that the end result after implementation will essentially be to deliver a consistent approach to the way buildings are approved, to the way building professionals are held responsible and to providing greater certainty for building owners.
HIA called on Ministers to include in this approach consideration of the current disjointed professional indemnity insurance arrangements with a view to ensuring that once implemented building professionals can move back to a situation where they can obtain affordable and appropriate insurance coverage.
National guidance is needed to limit the introduction of exclusions which go beyond combustible cladding.
HIA was pleased to once again be part of the Industry Forum with the Building Ministers, and we look forward to the Ministers releasing more details on the national approach and an ongoing dialogue.
Kristin Brookfield is HIA Chief Executive Industry Policy.
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Agreement on national approach to combustible cladding building reforms an important step: HIA

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Building standards in NSW will be investigated by a parliamentary inquiry. It will be conducted by the NSW upper house public accountability committee.
After the Mascot and Opal Towers disasters, the Greens MP David Shoebridge, Labor MP John Graham and Shooters, Fishers and Farmers leader Robert Borsak succeeded in securing an upper house inquiry into the issue.
The state government has been accused of being flat-footed since the first cracks emerged last December at Opal Tower in Sydney’s Olympic Park. 
<a href="https://www.parliament.nsw.gov.au/committees/inquiries/Pages/inquiry-details.aspx?pk=2540#tab-members" target="_blank">The inquiry, established on 4 July 2019</a>, will inquire into and report on the regulation of building standards, building quality and building disputes.
“We want to see the public’s submissions on this because some politicians think it’s just Mascot and Opal Towers, but there are hundreds of thousands of these across the state,” Shoebridge said. 
“This is a chance for people to speak directly to politicians and set out the scale of the problem.
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"Due to widespread public concern this issue needs to be addressed urgently," said Mr Shoebridge.
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The committee will look at the role of private certification in protecting building standards, the adequacy of consumer protections for owners of new buildings, limitations on insurance and compensation schemes. 
It will also look at instances of flammable cladding use on NSW buildings.
The inquiry will hold hearings in August with submissions from the public to be made by July 28.
In February, the NSW government promised to appoint a Building Commissioner to protect homeowners after agreeing there were "significant and concerning" industry problems following the Opal matter.
The Mascot Tower cracks, which had been evident in the 2008-built block since 2011, hit the headlines last month.
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That the Public Accountability Committee inquire into and report on the regulation of building standards, building quality and building disputes by government agencies in New South Wales, including:
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(a)  the role of private certification in protecting building standards, including:
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(i)  conflicts of interest
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(ii)  effectiveness of inspections
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(iii)  accountability of private certifiers
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(iv)  alternatives to private certifiers,
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(b)  the adequacy of consumer protections for owners and purchasers of new apartments/dwellings, and limitations on building insurance and compensation schemes, including:
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(i)  the extent of insurance coverage and limitations of existing statutory protections
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(ii)  the effectiveness and integrity of insurance provisions under the Home Building Act 1989
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(iii)  liability for defects in apartment buildings,
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(c)  the role of strata committees in responding to building defects discovered in common property, including the protections offered for all strata owners in disputes that impact on only a minority of strata owners,
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(d)  case studies related to flammable cladding on NSW buildings and the defects discovered in Mascot Towers and the Opal Tower,
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(e)  the current status and degree of implementation of recommendations of reports into the building industry including the Lambert report 2016, the Sherwood/Weir report 2018 and the Opal Tower investigation final report 2019, and
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(f)  any other related matter.
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That the committee table an interim report as soon as practical and its final report by 14 February 2020.
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NSW parliament launches inquiry into apartment building standards

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The taxable payments reporting system (TPRS) protected $2.7 billion from being lost to the black economy in the building and construction industry in the 2015-16 financial year, according to the ATO.
Businesses in building and construction are required to lodge a TPRS annual report each year on any payments to contractors and subcontractors within the industry.
This data allows the ATO to identify contractors who fail to lodge returns or activity statements, fail to register for GST, use false ABNs or fail to report all of their income to the ATO.
Deputy commissioner Deborah Jenkins said the TPRS is a key weapon in fighting the black economy and helps protect the integrity of the tax system.
“The significant revenue increase we’ve seen from the building and construction industry as a result of the TPRS shows how effective it is in improving tax compliance in an industry.”
“TPRS strengthens our ability to match income tax returns from contractors against what businesses report paying, allowing us to detect those trying to hide income and evade tax. The success of this system proves that if you’re trying to evade your obligations it won’t go unnoticed.”
“Businesses who are doing the right thing don’t need to worry, however if you’re not meeting your tax obligations there will be consequences.”
Following a recommendation from the Black Economy Taskforce, the TPRS has now been extended to cleaning, courier, road freight, information technology (IT), security, investigation and surveillance services. The Taskforce identified these industries as high risk for black economy activity.
Jenkins said the ATO is focused on supporting businesses in these industries to meet their reporting requirements.
“For the financial year 2018-19, businesses that supply courier or cleaning services need to report payments made to contractors they use to deliver those courier or cleaning services using the Taxable payments annual report (TPAR). This will need to cover all relevant transactions from 1 July 2018 to 30 June 2019. The annual report for these businesses is due by 28 August 2019.”
“If your current record keeping isn’t accurately capturing this, I urge you to review the way you keep records or contact your professional advisor immediately to assist you.”
“If a contractor provides you with an invoice which includes labour and materials, you are required to report the total amount of the payment regardless of whether it’s itemised or combined.”
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