on-site insight 3-2012

12
Fair Work Ombudsman (FWO) Nick Wilson has served notice on business to get its house in order, warning the workplace regulator is going to take a closer look at companies intent on "pushing the boundaries" of workplace laws in the name of productivity. In a recent speech Wilson said scrutiny of "high-risk" behaviour by SMEs and big business was a "high priority" for the agency. "We're increasingly finding that our focus is on businesses who seem intent on 'pushing the boundaries' of workplace relations and, as a consequence, the treatment of their workers, sometimes under a reference to 'productivity'," Wilson said. "Increasingly, what is beginning to concern us is the appetite of some for high-risk behaviour in order to gain modest workplace efficiencies and competitive advantages." He said FWO had encountered cases where "businesses use industrial relations, sometimes crudely, as the primary tool to push the boundaries with workplace entitlements". "While I am all for innovation and productivity improvement in the workplace, it should not be at the expense of individual's rights." Wilson said he was "alive to the concerns" that the agency has "overly concentrated on what are said to be heavy-handed small business compliance or litigation activities". However, while that deterrence activity would remain on a "solid footing", the FWO's "regulatory focus is as much on medium to large enterprises and that we are now working differently in this area", Wilson said. Spotlight on business procurement Wilson warned employers to take a closer look at their procurement processes. "There is without question an invisible workforce around many large businesses - cleaners, security guards, truckies and IT professionals are just a few. They work for, and within, an enterprise and often have very different pay arrangements to the core workforce. Sometimes these arrangements are unlawful," he said. Wilson stressed he saw contracting as "a good thing, as it can provide flexibility and efficiency in resource allocation". However, "in some instances" procurement had become "a vehicle to undermine entitlements to employees", he said. "Procurement chains become problematic when the competitive nature of tendering drives down costs in a way that results in underpayments. They may also distort employment in other markets when competitive pressures create incentives for other employers to cut their labour costs and breach their obligations," Wilson said "non-compliance with the FW Act through procurement chains" is a high priority for the FWO "in both the private and public sectors". He went further, "the FWO is all for boosting productivity, being innovative and instilling dynamic workplace relationships which improve competitive advantage and bottom lines, but if you're going to push the boundaries of your operations by attempting to disregard workplace laws, there are risks in doing so," Wilson warned. Put simply - "If your house is in order, you won't hear from us." Options for members In sending out this warning to the SME community, the regulator could not be clearer. If employers are running fast and loose regarding their obligations (eg; handshake deals instead of contracts; disregarding statutory and award obligations), then they run the very real risk of prosecution. Whilst the vast majority of our members are actively interested in the moving feast that is industrial relations, some are not. I trust that those who are ‘less vigilant’ read this piece and are sufficiently concerned to seek advice. FAIR WORK OMBUDSMAN TO FOCUS ON EMPLOYMENT PRACTICES OF BUSINESS - LARGE AND SMALL Mike Baldwin - Director Industrial Relations While I am all for innovation and productivity improvement in the workplace, it should not be at the expense of individual's rights Fair Work Ombudsman, Nick Wilson EDITION 3-2012 Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: [email protected] Web: www.mba.org.au MASTER BUILDERS EXECUTIVE COUNCIL President – Ross Barrett Treasurer – Simon Butt Chair, Commercial Builders’ Sector Council – Valdis Luks Chair, Suppliers and Subcontractors’ Sector Council – Grace Ferreira Chair, Residential Builders’ Sector Council –Frank Porreca Chair, Civil Contractors’ Sector Council – Andy Crompton Chair, Professional Consultants’ Sector Council – Hans Sommer MASTER BUILDERS MANAGEMENT TEAM Executive Director – John Miller Deputy Executive Director – Jerry Howard Director Industrial Relations – Mike Baldwin Senior Management Accountant – Louise MacCallum Senior Manager - Marketing & Membership Services – David Leitch MASTER BUILDERS GROUP TRAINING General Manager – Wendy Tengstrom

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Master Builders ACT building and construction newsletter

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Page 1: On-Site Insight 3-2012

http://www.mba.org.au/files/view/?id=594

Fair Work Ombudsman (FWO) Nick Wilson has served notice on business to get its house in order, warning the workplace regulator is going to take a closer look at companies intent on "pushing the boundaries" of workplace laws in the name of productivity. In a recent speech Wilson said scrutiny of "high-risk" behaviour by SMEs and big business was a "high priority" for the agency. "We're increasingly finding that our focus is on businesses who seem intent on 'pushing the boundaries' of workplace relations and, as a consequence, the treatment of their workers, sometimes under a reference to 'productivity'," Wilson said. "Increasingly, what is beginning to concern us is the appetite of some for high-risk behaviour in order to gain modest workplace efficiencies and competitive advantages."

He said FWO had encountered cases where "businesses use industrial relations, sometimes crudely, as the primary tool to push the boundaries with workplace entitlements". "While I am all for innovation and productivity improvement in the workplace, it should not be at the expense of individual's rights." Wilson said he was "alive to the concerns" that the agency has "overly concentrated on what are said to be heavy-handed small business compliance or litigation activities". However, while that deterrence activity would remain on a "solid footing", the FWO's "regulatory focus is as much on medium to large enterprises and that we are now working differently in this area", Wilson said.

Spotlight on business procurement

Wilson warned employers to take a closer look at their procurement processes. "There is without question an invisible workforce around many large businesses - cleaners, security guards, truckies and IT professionals are just a few. They work for, and within, an enterprise and often have very different pay arrangements to the core workforce.

Sometimes these arrangements are unlawful," he said. Wilson stressed he saw contracting as "a good thing, as it can provide flexibility and efficiency in resource allocation". However, "in some instances" procurement had become "a vehicle to undermine entitlements to employees", he said. "Procurement chains become problematic when the competitive nature of tendering drives down costs in a way that results in underpayments. They may also distort employment in other markets when competitive pressures create incentives for other employers to cut their labour costs and breach their obligations," Wilson said "non-compliance with the FW Act through procurement chains" is a high priority for the FWO "in both the private and public sectors".

He went further, "the FWO is all for boosting productivity, being innovative and instilling dynamic workplace relationships which improve competitive advantage and bottom lines, but if you're going to push the boundaries of your operations by attempting to disregard workplace laws, there are risks in doing so," Wilson warned. Put simply - "If your house is in order, you won't hear from us."

Options for members

In sending out this warning to the SME community, the regulator could not be clearer. If employers are running fast and loose regarding their obligations (eg; handshake deals instead of contracts; disregarding statutory and award obligations), then they run the very real risk of prosecution.

Whilst the vast majority of our members are actively interested in the moving feast that is industrial relations, some are not. I trust that those who are ‘less vigilant’ read this piece and are sufficiently concerned to seek advice.

FAIR WORK OMBUDSMAN TO FOCUS ON EMPLOYMENT PRACTICES OF BUSINESS - LARGE AND SMALL

Mike Baldwin - Director Industrial Relations

While I am all for innovation and productivity improvement in the workplace, it should not be at the expense of individual's rights

Fair Work Ombudsman, Nick Wilson

EDITIO

N 3-2012

Master Builders Association of the ACT1 Iron Knob St, Fyshwick ACT 2609PO Box 1211, Fyshwick ACT 2609

Tel: (02) 6247 2099Fax: (02) 6249 8374

Email: [email protected]: www.mba.org.au

MASTER BUILDERS EXECUTIVE COUNCILPresident – Ross Barrett Treasurer – Simon Butt Chair, Commercial Builders’ Sector Council – Valdis Luks Chair, Suppliers and Subcontractors’ Sector Council – Grace Ferreira Chair, Residential Builders’ Sector Council –Frank Porreca Chair, Civil Contractors’ Sector Council – Andy Crompton Chair, Professional Consultants’ Sector Council – Hans Sommer

MASTER BUILDERS MANAGEMENT TEAMExecutive Director – John MillerDeputy Executive Director – Jerry HowardDirector Industrial Relations – Mike BaldwinSenior Management Accountant – Louise MacCallumSenior Manager - Marketing & Membership Services – David Leitch

MASTER BUILDERS GROUP TRAINING General Manager – Wendy Tengstrom

Page 2: On-Site Insight 3-2012

Governments and regulators, both federal and local, always crow about reducing regulation and creating a regulatory environment that is conducive to industry, yet throughout the years, especially in recent times, there has been an avalanche of new regulations in building and planning mainly affecting the viability of small business operators and creating more bureaucracy and red tape. Some real reforms were made to building legislation in 1999, with the introduction of private certification and in 2007 changes to planning legislation. Both of these significant changes in legislation were approved on the premise that industry would be the beneficiary of a far more streamlined and efficient development and building process.

Ever since the introduction of these key legislation initiatives, there has been a constant ratchetting back of these provisions. Some of these changes have been totally pointless, with no perceived benefits to either consumers or industry.

As an industry, we are constantly engaged in consultation and this appears to be the mantra of all government agencies and regulators, to consult to death and then, basically, do what they intended in the first place; introduce another raft of legislation that places further burden on an already struggling industry.

A recent editorial in the Australian said that since the federal government came to power in 2007 and, during which time there has been a Minister for Deregulation, there have been more than 16,000 new regulations introduced and only 79 repealed. The only conclusion to draw here is that there is an inverse relationship between politician’s commitment to lower the burden of regulation and the actual quantity and complexity of regulation. In other words, pledges to reduce red tape are almost a prelude to the introduction of new rules and requirements.

In the ACT the building and construction industry has found itself caught by the reality of a tightly constrained federal budget which has delivered nothing to offset the material cost increases being imposed on industry. This, coupled with the ACT lease variation charges and an increase in the Long Service Leave levy, will have a detrimental impact on the viability of our industry.

In these circumstances we need to create a regulatory environment in the ACT that is conducive to assisting the industry in the troubled times ahead but, on the available evidence, there has been little or no progress in this area. Treasurer Andrew Barr, has recently made pledges to reducing red tape. This philosophy might sound great, however, we need some serious pledges that this will occur.

Given that we have an upcoming ACT budget and an election later in the year we believe it is time for all sides to put their political differences aside and work constructively to secure the future of our industry in the ACT.

A good starting point in seriously reducing red tape would be addressing a range of planning and building anomalies, including removing hurdles surrounding draft variations and putting in place a gate-keeper to handle such issues. DV306 is a perfect example, including the interim effect provisions and the potential impact that this will have on the industry. The industry finds it quite bizarre that a draft variation has defacto force of law before any consultation has occurred or, for that matter, consideration by the Legislative Assembly. This places the ACT in a very uncompetitive position when compared with surrounding NSW.

We need regulatory cost impact statements to promote trust between stakeholders and the decision-making process to be monitored.

We don’t need more regulation – we need better regulation and we need planning and building regulation to support employment opportunities in our local industry to avoid a potentially dramatic downturn to the detriment of all.

HAMMERTHE

hits the nail on the head

REGULATION OVERLOAD – LET’S GET SERIOUS BEFORE IT’S TOO LATE

Page 3: On-Site Insight 3-2012

NEW CONTRACTOR PAYMENTS REPORTING OBLIGATIONS IMPOSED BY ATO FROM 1 JULY 2012

IN RESPONSE TO SIGNIFICANT UNDER-REPORTING OF INCOME WITHIN THE CONSTRUCTION INDUSTRY (ESTIMATED AT AROUND 50%) THE AUSTRALIAN TAXATION OFFICE (‘ATO’) HAS INTRODUCED A NEW ‘TAXABLE PAYMENTS REPORTING – BUILDING AND CONSTRUCTION INDUSTRY’ REGIME. COMMENCING FROM 1 JULY 2012, MEMBERS WHO MAKE PAYMENTS TO CONTRACTORS FOR ‘BUILDING AND CONSTRUCTION SERVICES’ WILL NEED TO REPORT THESE PAYMENTS TO THE ATO, DETAILING THE FOLLOWING FOR EACH CONTRACTOR:

John Nikolic - Senior Advisor Director Industrial Relations

• contractor’s ABN;

• contractor’s name;

• contractor’s address;

• gross amount paid for the financial year including GST (for each contractor); and

• the total GST included in the gross amount paid.

Members will be required to record the above from 1 July 2012. The reports will be due annually and will be required to be submitted by 21 July of each year. However, if members lodge business activity statements quarterly, they may submit their report by 28 July for the first report (i.e. by 28 July 2013).

Payments to contractors only need to be reported if they are for ‘building and construction services’ as defined by the ATO. A list of work activities that ‘satisfy the definition of building and construction services’ are provided on the ATO’s website, see: http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00313486.htm&page=10&H10.

Members only need to report such payments if they are part of the construction industry, i.e. if 50% or more of their business activity is related to building and construction services.

Note that no reports are required for payments on building supplies and materials, nor for payments to employees (which are reported instead under the ‘Pay as you go’ system). If a member has any doubt about whether a worker is a contractor (as opposed to an employee) they should consult the ATO’s decision tool: www.ato.gov.au/employeecontractor.

For more information on the new taxable payments reporting regime, members should go to: http://www.ato.gov.au/taxablepaymentsreporting

May 4 2012 saw the AIB Professional Excellence in Building Awards. The AIB Professional Excellence in Building Awards reflect the highest standard of building and construction management, research and development of building projects in Australia.

Below are the finalists.

Infrastructure Frank Aridi Manteena Pty Ltd Belconnen Skate Park & Eastern Valley Way Inlet

Residential Construction $10million to $50million Michael Gilmore Hindmarsh Constructions Pty Ltd Verve Apartments

Commercial Construction $1million to $10million Jared Daly Manteena Pty Ltd National Library of Australia - Treasures and Exhibition Galleries and Main Reading Room Entry

Angelo Damiano FM Projects Australia Pty Ltd The Caps Clinic

Ron Jedrzejek G.E. Shaw & Associates Innovations Building Refurbishment

Commercial Construction $10million to $50million Jonathan de Puit Hindmarsh Constructions Pty Ltd Australian National University - Frank Fenner Building

Gary Robinson Hindmarsh Constructions Pty Ltd Australian National University -Central Plant Building

Matthew Nagle Hindmarsh Constructions Pty Ltd Australian National University -Teaching Building

Commercial Construction $50million to $100million Matthew Nagle Hindmarsh Constructions Pty Ltd Australian National University -Biosciences Building

2012 AIB PROFESSIONAL EXCELLENCE IN BUILDING AWARDS

Page 4: On-Site Insight 3-2012

GREEN LIVING REFORMATTED, REJUVENATED, RELEVANT AND SUSTAINABLETHE MASTER BUILDERS ASSOCIATION OF THE ACT PROVIDE A NATIONALLY ACCREDITED GREEN LIVING PROGRAM FOR THOSE WANTING TO BECOME QUALIFIED IN THIS AREA.

Jerry Howard Deputy Executive Director

Master Builders Association of the ACT provide a nationally accredited Green Living program. The BERSPRO Thermal Assessment Energy Rating program runs over 4 days. It is not set up to be training in the traditional sense – rather it is a facilitated enquiry for those who want to explore the broader business options associated with sustainability and environmentally-sensitive work practice.

Practice has changed for some of the ‘green’ industry vanguards and they have been a vocal demand for learning which reflects their commitment to sustainability – and which extends them while at the same time provides the consolidated core learning about everything you need to know about green building. Most participants want to feel more comfortable about ‘Residential Mandatory Disclosure’ scheduled for national roll-out in the imminent future and to know what they can say to customers to attract new business and more importantly secure an ongoing project relationship with them.

The backdrop we must be aware of is simply a public perception that anything to do with sustainability is a conversation-killer perhaps due in no small part to the ‘carbon debate’

and ‘carbon tax’ and perhaps a perception that ‘climate change’ has been a construct of the Press following on a group of radical scientists intent on scaremongering.

We have an increasingly savvy public who want answers to ‘green’ questions – answers that reflect where savings can be made in the medium and long-term and the facts about technology to better understand sustainable building materials, solar PV systems, insulation, thermal comfort, glazing and utility management. From this point on we already know that utility costs are going to rise significantly and customers will start looking for ways to reduce their bills as a natural outcome of this. Builders are customers too and much of the Green Living message is as useful to Builders in their own family situations as it is applied to customers. Some of the best business outcomes arise out of actually being able to relate to customers out of your own experience as a consumer.

Green Living as a program has undergone a significant change and in its present form it is a facilitated enquiry based on two core themes:

1. Driving sustainable work practices and using ‘green’ materials to generate business profits – identifying and petitioning the emergent ‘green’ market, eliminating wasteful processes, niche marketing to attract the group of consumers who are environmentally conscious and want good advice about ‘greening’ their homes/houses.

2. Informing economy for customers based on ‘green’ principles – demystifying solar PV systems, insulation, constructing with innovative sustainable building materials, water issues. Delineating between ‘cost’ and ‘price’ in terms of purchasing and investment in house/home improvement.

Above all other things it is a solutions-based program designed to demystify sustainability and provide ideas about building energy efficient and environmentally friendly homes. For these reasons it is flexible enough to accommodate input from participants and changes to the environment in which they are working and therefore able to offer practical solutions. Green Living builders talk about a ‘case management’ approach to building whereby the relationship between customer and practitioner is fostered to take account of ongoing building needs based on a negotiated project plan and to acknowledge that with 40% of all construction work carried out in Australia being renovation-based, people want to create sustainable homes and their budgets may indicate the building relationship needs to sustain over a period of years.

The course which is presented to support these learning pillars provides information on materials, practices, innovations and green building science. What has made a big impact has been the calibre of the facilitators and their ability to present accurate, current and educated discussion to add to the skill-base of participants and at the same time to add to their knowledge base without confusing them. As one participant commented “I learned a great deal doing this program, perhaps even more now that I have applied the material to my work….”

The Green Living program is not training as such, it is a facilitated enquiry into sound green business practice and it provides learners with the foundations for developing a ‘green’ profile in their business

We have an increasingly savvy public who want

answers to ‘green’ questions – answers that reflect where savings can be made in the

medium and long-term

Page 5: On-Site Insight 3-2012

operations. Green Living is not structured like training – the only requirement graduates must meet to have their names added to the Master Builders Green Living Builder web-page is a written assignment to demonstrate how they have applied their learning material in their businesses and this is required annually to maintain the web-site profile. We know that both customers and also commercial builder contractors review this web-site and more recently we also discovered that other agencies including government use it to review tender applications.

Program outcomes: what you can expect to achieve as specific measureable outcomes.

1. Enhanced understanding of ‘green’ resources, technologies and practices

2. Currency in terms of what is happening in Australia and internationally.

3. Increased business profitability trading on ‘green’ themes

4. Enhanced economies for customers through correct and up to date information provision

Program objective: why you should do this course.

Builder graduates who are up to date, appropriate and accurate with information they provide, resourceful and approachable on sustainable building practices and ideas.

Expressions of Interest are being sought for the 2 day Green Living Domestic course.

Cost $625.00 Contact Cecilee Miller E-mail [email protected] Phone 02 6280 9119 On completion, a training rebate of up to $360 for the course cost may be available through The ACT Building & Construction Industry Training Fund.

Below are dates for the 4 day BERSPRO Thermal Assessment Energy Rating course.

Master Builders Association of the ACT Skills Centre, Fyshwick. Cost $1,760.00 When 28 - 29 June 2012 / 5-6 July 2012 Contact Cecilee Miller E-mail [email protected] Phone 02 6280 9119

On completion, a training rebate of up to $720 for the course cost may be available through The ACT Building & Construction Industry Training Fund.

For more information please go to: http://www.mba.org.au/training/sustainability

Page 6: On-Site Insight 3-2012

SMALL BUSINESS TAX CHANGESTHE GOVERNMENT WILL INTRODUCE A LOSS CARRY BACK SCHEME TO PROVIDE IMMEDIATE TAX RELIEF FOR SMALL BUSINESSES WHICH REPORT A LOSS.

Currently businesses are able to carry forward losses to offset future profits and therefore reduce their tax bills.

A one year loss carry-back will apply in 2012 13, with tax losses incurred in that year able to be carried back and offset against tax paid in 2011 12. For 2013 14 and later years, tax losses can be carried back and offset against tax paid up to two years earlier. Companies will be able to carry back up to $1 million of losses each year. This will provide a cash benefit of up to $300,000 a year.

The carry-back will be available to companies and entities that are taxed like companies. It will apply to their revenue losses only and will be subject to integrity rules, and limited to a company’s franking account balance.

The Government had also previously announced as part of its Carbon Price package that from 1 July 2012 small businesses will be able to instantly write-off any new business asset worth up to $6,500, for as many assets as they purchase. From 1 July small businesses will also be able to instantly write-off the first $5,000 of a motor vehicle.

The Government has abandoned the planned cut in company tax from 30 to 29 per cent, originally announced as part of the Carbon Price package but not yet legislated.

SUPERANNUATION TAX CONCESSIONS CUT

The Government has deferred by two years its previously announced change which would allow individuals with less than $500,000 in superannuation savings to make higher concessionally-taxed contributions to their superannuation as they approach retirement.

The increase in concessional contribution caps for individuals over 50 with low superannuation balances will be delayed from 1 July 2012 to 1 July 2014.

The change appears inconsistent with the Government’s general equity message of using the Budget to provide benefits for low and middle-income earners, which may open the measure to dispute by the independents and minor parties.

Under the change individuals aged 50 and over with superannuation balances below $500,000 will be able to make up to $25,000 more in concessional contributions than is allowed under the general concessional contributions cap – that is a

concessional contribution up to a total of $50,000. This defers the 2010 measure which would have

allowed a total concessional contribution of up to $75,000 from 1 July 2012.

As the Government had widely hinted before the Budget, the tax concession for superannuation

contributions by high income earners over $300,000 has been cut.

The tax concession on superannuation contributions by those earning more than $300,000

will be reduced from 30 per cent to 15 per cent, making the concession “more in line with the concession received by average income earners,” the Government said.

The new measure will allow businesses to ‘carry back’ their losses, applying them to their previous tax paid, and receive a refund on some of that tax paid.

BUDGET 2012-13

BUDGET 2012-13

Page 7: On-Site Insight 3-2012

START ON ACT TAX REVIEW RECOMMENDATION TO ABOLISH STAMP DUTY POSSIBLEACT Treasurer Andrew Barr has said the Government may make a start on abolishing the Territory’s long-resented stamp duty on property sales in the ACT Budget on 5 June.

However any move is likely to be small and phased-in over 10 to 20 years.

The long-awaited review of ACT taxation by former Treasurer Ted Quinlan has been made public and recommends the abolition of stamp duty (conveyance tax) and its replacement by an additional charge on rates.

Mr Barr has accepted the Review’s recommendation but also accepted its advice the change-over should be phased-in over 10 to 20 years.

In releasing the Quinlan Review Mr Barr said the Government’s plans would be revealed in the June Budget.

He also said, "It (stamp duty) is a considerable part of our own-source revenue, about $300 million or thereabouts, so the transition in any one year, onto the rates base for example would effectively require a doubling of everyone's rates.

"That would be very unfair to anyone who has just paid stamp duty so I don't believe that it would be appropriate to make that transition in any one year and I accept the recommendations of the review that it should be a 10 to 20 year process.

"The question of course, is making a start and so the government’s view is (that is) something that we should pursue.”

The review also recommends the abolition of duties on general and life insurance, the retention of payroll tax in some form and the adoption of a broad-based land tax to replace the revenues forgone.

The review says, “Duty on conveyances is the most unstable and unpredictable tax. This tax is fundamentally unfair, in that it raises around a quarter of the total taxation revenue of the Territory from around 9 per cent of the people whose circumstances may impose the necessity to move to different accommodation. For this tax, around 38 cents of the economic value is lost for every dollar raised.”

However it notes “The difficulty is in transitioning to more efficient taxes” and says there should be “at least a 10 year, and up to a 20 year, transition plan.”

The taxes abolished should be replaced by “a broad-based land tax as a base for revenue replacement” and the “Lease Variation Charge and a broad-based land tax (should be used) as instruments for land value capture.”

Mr Barr and Chief Minister Katy Gallagher have said recently the stamp-duty regime unfairly targets households who move house, and Ms Gallagher conceded the present tax regime was hurting housing affordability.

Mr Barr said, partly because of the ''unfairness'' of asking new homeowners to pay the broad-based property tax just after handing over tens of thousands of dollars in stamp duty required a phase-in.

The full Review is on the ACT Treasury website:

http://www.treasury.act.gov.au/documents/ACT Taxation Review/ACT Taxation Review May 2012.pdf

BUDGET 2012-13

BUDGET 2012-13

The Federal Budget contains little more than a few crumbs for the ACT construction industry, while sweeping job cuts in Government agencies is likely to adversely affect housing demand.

A press release accompanying the Budget noted ”the 2012-13 Budget deliver(s) a further instalment of $21.4 million in funding to start, progress and complete a range of projects in the Australia Capital Territory” and that “the new Majura Parkway will go from the drawing board to construction in the coming financial year (Federal contribution: $144.0 million).”

However this funding had been allocated for the ACT in 2012-13 in last year’s Budget and the 2012-13 Budget contained no additional funds.

The balanced Budget may however allow the Reserve Bank to make further interest rate cuts, which will assist the sector.

The lack of new funding for building and construction means the ACT Budget on 5 June will be particularly important for the sector.

Finance Minister Penny Wong said Federal Government staffing would fall by 3000, many of whom are likely to be in Canberra.

The Budget provides for the construction and fit-out of a new forensic science and technical intelligence facility for the Australian Federal Police (AFP) in the Australian Capital Territory. $100,000 is provided in 2012 - 13 for a feasibility study into a Parliament House Walk between Civic and Parliament House. The feasibility study will examine possible routes and signage for the walk. Two other larger projects were announced immediately before the Budget: $2.5 million for lights at Manuka Oval and $12 million for the National Capital Authority.

CANBERRA CONSTRUCTION Federal Budget disappoints

BUDGET 2012-13

Page 8: On-Site Insight 3-2012

TRUSS ROOFCUT ROOF

Tie Down Points

GI strap fixed to studs using 3x2.80 nails

GI strap fixed to studs using 3x2.80 nails

If possible tie down underpulins and struts to frame

5.0(TYP)2.5(TYP)

2.5

Top plate

Rafter or truss

Studs

GI strap fixed to studs using 3x2.80 nails both ends

On-site Insight

A N I N D U S T R Y U P D A T E F R O M T H E M A S T E R B U I L D E R S A S S O C I A T I O N O F T H E A C T

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5

With the rising demand for residential remodelling, there is an increasing requirement for roof replacement or, more specifically, replacing roof tiles with a metal deck roof.

The MBA receives a number of enquiries regarding the requirements and implications for roof replacement.

Probably, the first consideration is to check whether you need development approval, and whether the colour chosen by your clients comply with the rules in the new Development Codes of the Territory Plan.

That’s something easily looked up, but have you considered the changes to the forces applied to the new roof?

Replacing a tiled roof with a metal roof will dramatically increase the uplift forces. Remember that the dead load of the roof changes from 60 kg/m2 to 10 kg/m2.

As a result of this increase in uplift forces, provision must be made to ensure that the new roofing material does not help to rip the whole roof structure from the house. These provisions come in the form of tie-downs which are similar to the tie down requirements for metal roofs in AS 1684 National Timber Framing Code.

On a conventional cut roof, with rafters spaced at 600 mm centres, and a wind Uplift Load Width (ULW) of, say, 2.5 m and each alternate rafter being tied down, the calculated uplift force would be 2.9 kN. The selected tie-down to satisfy this uplift requirement would be a 30 x 0.8 GI strap, fixed with 3 x 2.8 ø nails each end over every third rafter. (See diagram), This tie-down has a capacity of 3.5 kN. The same tie-down method can be used for securing under purlins/ridge to strutting beams/wall as noted in the diagram.

On a typical truss roof with an ULW of 5 m, the tie-down requirement is a minimum of a 30 x 0.8 GI strap fixed

with 3 x 2.8 ø nails each end over each alternate truss (See diagram). In this case the calculated uplift force is 4.4 kN and the tie-down capacity is 4.7 kN.

The important thing to remember is that you ensure the roof structure is tied to the studs and not only the top plate. This is crucial!

“But it can’t be done on an existing roof structure” we hear you say. On a typical roof construction the eaves overhang (when the tiles are removed) exposes about 300 mm of the external timber frame above the last course of bricks. This allows plenty of room to tie straps to the studs. We have described this method of tie-down as it is the simplest and most easily applied on site, given the difficulties of installing continuous tie-downs in existing houses.

Finally the roofing battens must be screwed to the rafters or top chord of the truss using the following: 1 x 75 No 14 Type 17 screw with a minimum penetration of 50 mm, at every truss (900 c/c) and every second rafter (1200 c/c). Batten straps can also be used as an alternate method of fixing.

The methods noted do not preclude other methods from being used as long as they are satisfactory and comply with AS 1684.

Roof Replacement – some Key Issues To Consider

With the rising demand for residential remodelling, there is an increasing requirement for roof replacement or, more specifically, replacing roof tiles with a metal deck roof.

The Master Builders Association of the ACT receives a number of enquiries regarding the requirements and implications for roof replacement.

Probably, the first consideration is to check whether you need development approval, and whether the colour chosen by your clients comply with the rules in the

Development Codes of the Territory Plan.

That’s something easily looked up, but have you considered the changes to the forces applied to the new roof?

Under Schedule 1 of the Planning and Development Regulations 2008 the change from tile to metal roof is exempt from development approval if the pitch is not altered by more than two degrees. However Part 1.3 of the Building Regulations 2008 requires that a building approval and commencement notice be issued prior to undertaking this work.

Replacing a tiled roof with a metal roof will dramatically increase the uplift forces. Remember that the dead load of the roof changes from 60 kg/m2 to 10 kg/m2.

As a result of this increase in uplift forces, provision must be made to ensure that the new roofing material does not help to rip the whole roof structure from the house. These provisions come in the form of tie-downs which are similar to the tie down requirements for metal roofs in AS 1684 National Timber Framing Code.

On a conventional cut roof, with rafters spaced at 600 mm centres, and a wind Uplift Load Width (ULW) of, say, 2.5 m and each alternate rafter being tied down, the calculated uplift force would be 2.9 kN. The selected tie-down to satisfy this uplift

requirement would be a 30 x 0.8 GI strap, fixed with 3 x 2.8 ø nails each end over every third rafter. (See diagram), This tie-down has a capacity of 3.5 kN. The same tie-down method can be used for securing under purlins/ridge to strutting beams/wall as noted in the diagram.

On a typical truss roof with an ULW of 5 m, the tie-down requirement is a minimum of a 30 x 0.8 GI strap fixed with 3 x 2.8 ø nails each end over each alternate truss (See diagram). In this case the calculated uplift force is 4.4 kN and the tie-down capacity is 4.7 kN.

The important thing to remember is that you ensure the roof structure is tied to the studs and not only the top plate. This is crucial!

“But it can’t be done on an existing roof structure” we hear you say. On a typical roof construction the eaves overhang (when the tiles are removed) exposes about 300 mm of the external timber frame above the last course of bricks. This allows plenty of room to tie straps to the studs. We have described this method of tie-down as it is the simplest and most easily applied on site, given the difficulties of installing continuous tie-downs in existing houses.

Finally the roofing battens must be screwed to the rafters or top chord of

the truss using the following: 1 x 75 No 14 Type 17 screw with a minimum penetration of 50 mm, at every truss (900 c/c) and every second rafter (1200 c/c). Batten straps can also be used as an alternate method of fixing.

The methods noted do not preclude other methods from being used as long as they are satisfactory and comply with AS 1684.

ROOF REPLACEMENT.SOME KEY ISSUES TO CONSIDERby Jason Grieves, Technical Services Manager

"As a result of this increase in uplift forces, provision must be made to ensure that the new roofing material does not help to rip the whole roof structure from the house."

Page 9: On-Site Insight 3-2012

TRUSS ROOFCUT ROOF

Tie Down Points

GI strap fixed to studs using 3x2.80 nails

GI strap fixed to studs using 3x2.80 nails

If possible tie down underpulins and struts to frame

5.0(TYP)2.5(TYP)

2.5

Top plate

Rafter or truss

Studs

GI strap fixed to studs using 3x2.80 nails both ends

On-site Insight

A N I N D U S T R Y U P D A T E F R O M T H E M A S T E R B U I L D E R S A S S O C I A T I O N O F T H E A C T

0004

5

With the rising demand for residential remodelling, there is an increasing requirement for roof replacement or, more specifically, replacing roof tiles with a metal deck roof.

The MBA receives a number of enquiries regarding the requirements and implications for roof replacement.

Probably, the first consideration is to check whether you need development approval, and whether the colour chosen by your clients comply with the rules in the new Development Codes of the Territory Plan.

That’s something easily looked up, but have you considered the changes to the forces applied to the new roof?

Replacing a tiled roof with a metal roof will dramatically increase the uplift forces. Remember that the dead load of the roof changes from 60 kg/m2 to 10 kg/m2.

As a result of this increase in uplift forces, provision must be made to ensure that the new roofing material does not help to rip the whole roof structure from the house. These provisions come in the form of tie-downs which are similar to the tie down requirements for metal roofs in AS 1684 National Timber Framing Code.

On a conventional cut roof, with rafters spaced at 600 mm centres, and a wind Uplift Load Width (ULW) of, say, 2.5 m and each alternate rafter being tied down, the calculated uplift force would be 2.9 kN. The selected tie-down to satisfy this uplift requirement would be a 30 x 0.8 GI strap, fixed with 3 x 2.8 ø nails each end over every third rafter. (See diagram), This tie-down has a capacity of 3.5 kN. The same tie-down method can be used for securing under purlins/ridge to strutting beams/wall as noted in the diagram.

On a typical truss roof with an ULW of 5 m, the tie-down requirement is a minimum of a 30 x 0.8 GI strap fixed

with 3 x 2.8 ø nails each end over each alternate truss (See diagram). In this case the calculated uplift force is 4.4 kN and the tie-down capacity is 4.7 kN.

The important thing to remember is that you ensure the roof structure is tied to the studs and not only the top plate. This is crucial!

“But it can’t be done on an existing roof structure” we hear you say. On a typical roof construction the eaves overhang (when the tiles are removed) exposes about 300 mm of the external timber frame above the last course of bricks. This allows plenty of room to tie straps to the studs. We have described this method of tie-down as it is the simplest and most easily applied on site, given the difficulties of installing continuous tie-downs in existing houses.

Finally the roofing battens must be screwed to the rafters or top chord of the truss using the following: 1 x 75 No 14 Type 17 screw with a minimum penetration of 50 mm, at every truss (900 c/c) and every second rafter (1200 c/c). Batten straps can also be used as an alternate method of fixing.

The methods noted do not preclude other methods from being used as long as they are satisfactory and comply with AS 1684.

Roof Replacement – some Key Issues To Consider

REVIEW OF WORK EXPERIENCE AND INTERNSHIPS ANNOUNCED

THE FAIR WORK OMBUDSMAN HAS COMMISSIONED A STUDY OF UNPAID WORK ARRANGEMENTS, FOCUSING ON WORK EXPERIENCE, INTERNSHIPS AND TRIAL WORK, WHICH COULD LEAD TO RECOMMENDATION FOR TIGHTER REGULATION OF THESE ARRANGEMENTS.

The Fair Work Ombudsman has commissioned a study of unpaid work arrangements, focusing on work experience, internships and trial work, which could lead to recommendation for tighter regulation of these arrangements.

The Fair Work Ombudsman has commissioned University of Adelaide Law School academics Andrew Stewart and

Rosemary Owens to research unpaid work arrangements, focusing on internships, work experience and trial work. Both are leading researchers in the field of labour law.

They will investigate the range, nature and prevalence of unpaid work arrangements in Australia and will examine

international best practice for dealing with these arrangements, Fair Work Ombudsman Nicholas Wilson said.

The academics will interview key stakeholders including industry groups, unions, government and non-government bodies, universities and schools.

Mr Wilson said the project will help to inform his Agency’s education and compliance processes in relation to the issue of unpaid work arrangements. “We want to make sure we are doing everything within our power to ensure the relevant workplace participants are aware of laws relating to unpaid work arrangements,” he said. “A basic principle of workplace laws that business operators can overlook when considering taking on an unpaid intern is that generally when a person performs work for a business, they are lawfully entitled to be paid for it.

“While there are some legitimate internship arrangements available, business operators who view unpaid interns as a source of free labour are at the greatest risk of breaching workplace laws.”

He told ABC radio, “if I deem that there is a necessity to put to our Minister or to the Parliament that there should be some changes, then of course we will put that forward. But the process that we're going through at the moment is to really sort out how volunteer arrangements or unpaid work trials might be used or exploited and to then understand if there are any deficiencies.”

Master Builders ACT Deputy Executive Director Jerry Howard with Apprentice Luke Gilbert

Page 10: On-Site Insight 3-2012

by Jason Grieves, Technical Services Manager

MORE LEGISLATIVE CHANGES REGARDING DEVELOPMENT NOTIFICATION AND BUILDERS SIGNS

Just when you thought there would or could be no further changes to legislation around the building industry and it was safe to settle into a comfortable business routine another requirement has been introduced. The changes have been proposed in the Planning, Building and Environment Legislation Amendment Bill 2012 and require additional information to be presented at the building approval stage for developments which meet Development Exempt criteria. It also requires notification to adjoining residents in some areas. We have been informed the change has already received consent from the Planning and will come into effect from 28 May, 2012.

The changes relate to the following sections in the Planning and Development Regulations 2008. Amendments to sections 1.100 and 1.100B and new sections introduced at 1.19 and 1.100AA and 1.100AB.

What does this mean for future developments?

After 28 May 2012, the proponent of a Code compliant development in an ‘old residential’ area will be required to take reasonable steps to notify residents of each adjoining property about the proposal within a 2 year period prior to the commencement of the project (see Figure 1 for example). This notification process will be required for work such as demolition of part or whole of an existing building, additions or alterations and a new dwelling with a DA exempt approval. This applies to development taking place where there is at least one existing dwelling on the block of the proposed work.

Notification of the proposed development is to be given to the resident or the tenant of the adjoining residence prior to receiving a building approval. There is no requirement for the proponent to notify the lessee of the residence if they are not the resident or the adjoining block is vacant. There is also no requirement for the resident of an adjoining property if that resident is acting as an agent for the proposed development.

What information is to be conveyed?

The Master Builders Association of the ACT and Certifiers have been informed that the information regarding the proposed development provided by the proponent is to include:

• Site plan

• Elevations

• Details and description of the proposed building work and contact details i.e. ‘Single residence with unattached garage’.

• Contact details. These details do not have to the proponents and may be someone else such as the builder, certifier, or designer.

There is no requirement to include a copy of the proposed floor plan.

Who checks this notification process?

Proof of notification must be presented to the appointed Building Certifier before a commencement notice for building work can be issued. ACTPLA have advised that approved forms to achieve this are still being developed which will also prescribe the information to be relayed. Until these forms are available the proponent must state in writing to the Certifier that they have completed the notification and include details of:

• How the documents were delivered.

• Who the documents were delivered to.

• When the documents were delivered.

• Include location of the residents notified.

• Must be signed by the proponents.

The proponent of the development may deliver information of the development a number of acceptable ways and include the following:

• In person.

• Certified mail.

• Regular mail.

• E-mail.

• Leaving the required information in the adjoining properties letter box, or

• Placing the information under the door of adjoining property.

Please note this notification process is not required for a new residence on a block where the proposed residence is the first dwelling. (see table 1 opposite)

Site signs:

The Master Builders have been informed from the ACTPLA that the introduction for site signage requirements will be 1 July 2012. We have also been advised that it is permissible to include details required under the Work Health and Safety Regulations 2011 on the same sign and have provided an example as in Picture 1 opposite. In addition to information provided in the last edition of Onsite/Insight we have been informed that prior to the issuance of commencement notice the builder must also provide a statement to the Certifier that the sign was erected for 7 consecutive days in the 2 months prior to commencement. A prescribed form is also being developed for this application and will be forwarded to certifiers on its completion.

Page 11: On-Site Insight 3-2012

Suburb Proposed work (DA

exempt compliant)

Existing residence present Notification under

s1.19 required

Red Hill Demo/re-build Yes Yes

Hughes Additions/alterations Yes Yes

Casey New residence No No

Forde Additions/alterations Yes Yes

Crace Pool Yes Yes

Figure 1

B1 B2 B3 B4

B5 B6 B7 B9B8

STREET / ROAD

House Vacant House House

HouseVacant

Proposed Development

Vacant House

Vacant House House House

B10 B11 B13B12

Notification under Section 1.19 of Regs for B3, B6, B11 & B12.

Blocks B2 and B8 do not require notification

as there is no residence present.

Table 1

Picture 1 - Site Signge

Signage must be 600mm x 900mm and can be either a landscape or portait orientation. The notice about building work signage can be combined with your obligations to provide notification under the Work Health and Safety Act. The coloured portion of the above sign relates to requirements under the Work Health and Safety Act. You can erect two separate signs if you wish however it makes sense to combine the two requirements on the one sign as depicted above. Please note however that the Notice About Building Work sign has specific provisions in the ACT Building Regulations, and must be a minimum of 600mm x 900mm.

Further information can be found in the previous edition of On-Site Insight.

Proposed Development

Notification Required as block is adjoining and resident present

No Notification Required as block is vacant and no resident present

No Notification Required as block is not adjoining

900m

m

600mm

Page 12: On-Site Insight 3-2012

MILLION

// To Insert New Data Goto Object/Graph/Data• Copy and Paste Pivot Table Data into Data

$0

$20

$40

$60

$80

$100

$120

Apr-12Mar-12Feb-12Jan-12Dec-11Nov-11Oct-11Sep-11Aug-11July-11Jun-11May-11

May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12Additions and Alterations (Residential) 4.97 10.00 5.52 0.3 0.6 0.58 0.82 1.00 2.00 5.5 6.28 6.00Commercial Building Work 14.20 12.3 7.91 85 60.9 17 8.19 51.5 19.02 14.3 102 16.5Garages, Pools, Decks and Similar Structures 6.90 6.00 7.0 7.35 10.5 7.1 9.02 7.05 0.64 1.7 3.00 6.1Multi Unit 8.81 66.5 96.0 7.7 24.89 15 13 16.5 1.8 0.13 7.3 1New Housing 7.43 5.00 5.5 1.07 2.8 0.4 1.8 11.4 3.7 40 43 52

The above graph and table below summarise private sector building activity for the various building sectors in the ACT over the past 12 months. The values for each month are depicted in millions of dollars.

ACT PRIVATE SECTOR BUILDING ACTIVITY

COMING EVENTS FOR 2012

Master Builders and Boral Excellence in Building Awards

Date: Friday 29 June I Where: National Convention Centre, Canberra

The Master Builders Excellence in Building Awards are largely regarded as the premier awards and networking event for the building and construction industry throughout Canberra and the surrounding region.

TRAINING DATES FOR 2012

REMOVAL & SUPERVISION OF ASBESTOS

Date: 24 October (Contact Norma Inglis at [email protected] to book your place) The aim of this course is to provide learners with the knowledge and skills to identify when and where Asbestos may be present and the precautions that need to be taken to safely remove and dispose of the Asbestos.

ASBESTOS AWARENESS Date: 28 June / 10 July (Contact Norma Inglis at [email protected] to book your place) This is a nationally recognised course, approved by the ACT Government, to satisfy the regulatory requirements of the ACT Building Act, designed to meet the needs of tradespeople, services workers, builders, building certifiers and community members.

BERSPRO THERMAL ASSESSMENT TRAINING

Date: 28 / 29 June (Contact Cecilee Miller at [email protected] to book your place)

The Building Energy Rating Scheme, (BERS) is a government recognised program used to stimulate and analyse the thermal performance of Australian houses and measure this star rating.

SECTOR COUNCIL MEETINGS 2012

COMMERCIAL 26 JUN 21 AUG 23 OCT - -

CIVIL 7 AUG 13 NOV

RESIDENTIAL 13 JUN 25 JUL 5 SEP 17 OCT 28 NOV

SUB-CONTRACTORS & SUPPLIERS 14 AUG 16 OCT - - -

PROFESSIONAL 20 JUNE 15 AUG 17 OCT 12 DEC

THIS EVENT IS SOLD OUT