Bills

Statutes Amendment (Building and Construction Industry Review - Penalties) Bill

Introduction and First Reading

The Hon. A. MICHAELS (Enfield—Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (15:47): Obtained leave and introduced a bill for an act to amend the Building Work Contractors Act 1995, the Fair Trading Act 1987, the Magistrates Court Act 1991 and the Plumbers, Gas Fitters and Electricians Act 1995. Read a first time.

Second Reading

The Hon. A. MICHAELS (Enfield—Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (15:48): I move:

That this bill be now read a second time.

I am pleased to introduce the Statutes Amendment (Building and Construction Industry Review—Penalties) Bill 2025. This bill proposes to amend the Building Work Contractors Act 1995, the Fair Trading Act 1987, the Magistrates Court Act 1991 and the Plumbers, Gas Fitters and Electricians Act 1995 to improve the regulatory framework for the support, oversight and management of the building and construction industry in South Australia. These acts establish registration and licensing schemes for workers in the construction industry, set the requirements for domestic building work contracts and provide for disciplinary action against workers, amongst other matters.

In recent years, there have been substantial shifts in the industry that have introduced significant challenges. Some provisions in these acts have not been updated for over 20 years and do not reflect the current risks and challenges in the industry with increased housing demand, shortages and delays in obtaining materials, lack of trade labour and large cost increases.

Following the release of the national Building with Confidence Report in February 2018 and concerns and reform proposals raised through industry feedback, we have undertaken a Building and Construction Industry Review. The review focuses on opportunities to protect and empower consumers while supporting workers and businesses to deliver quality building services and enhance industry compliance.

This bill considers an important issue that lies at the core of ensuring responsible and accountable business conduct: the enforcement of compliance through appropriate penalties. The increased penalties contained within this bill send a clear message that noncompliance will not be tolerated. This bill significantly increases the penalties under the respective acts, introduces expiations for many existing offences and establishes new offences for undertaking unlicensed work and falsely holding out to be licensed.

In any regulatory framework, compliance with established provisions is not merely a matter of legal obligation; it is a reflection of the integrity, fairness and accountability of the industry. By strengthening penalties and enforcement options for breaches of the acts, they serve as a powerful deterrent against misconduct. The introduction of expiations for existing offences under the acts and increasing the Magistrates Court's ability to impose fines in relation to building matters enhances the enforcement capacity by reducing barriers to undertaking enforcement actions.

The ability to expiate against offences introduces opportunities for CBS to proactively tackle concerning issues in the building industry, with immediate outcomes to address misconduct. CBS will retain the ability to seek further enforcement options to ensure that a penalty is proportionate with the offence and will now be able to seek these high penalties through the Magistrates Court where serious or repeated breaches occur. We recognise that small and medium businesses make up the majority of the industry and, in a marketplace where trust is essential, consumers must feel confident that their rights and investments are secure.

The increase to penalties and the introduction of expiations is about prevention, protection and progress to ensure that consumers are safeguarded and the integrity of the building industry in South Australia remains strong. Compliance and enforcement activity undertaken by CBS aims to be fair, proportionate to the conduct, and in the public interest. These greater enforcement options provide CBS with a broad spectrum of enforcement tools to ensure compliance and customer protection without creating unnecessary challenges for traders. The ultimate result is a fairer, safer and more trustworthy building industry for all South Australians.

This robust enforcement scheme aims to promote a culture of responsibility across the construction industry and encourages businesses to invest in compliance training and risk management systems to uphold their obligations. CBS strives to work with industry to promote a culture of transparency and support education for traders. Additional stages of the Building and Construction Industry Review will focus on supporting practitioners and traders to meet their obligations by improving industry standards.

I want to thank key industry stakeholders, including the MBA and HIA, for their assistance in strengthening their industry and for supporting their members to ensure that, by and large, we have a high-quality construction workforce in South Australia. I commend the bill to the house and seek leave to have the explanation of clauses inserted in Hansard without my reading it.

Leave granted.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

Part 2—Amendment of Building Work Contractors Act 1995

3—Amendment of section 6—Obligation of building work contractors to be licensed

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

4—Amendment of section 19—Approval as building work supervisor in relation to licensed building work contractor's business

The amendment in this clause increase existing penalties applying in relation to the offences set out in the section.

5—Amendment of section 25—Disciplinary action

The amendment in this clause increases the amount of the fine able to be imposed by the Tribunal on a person against whom disciplinary action is taken in accordance with the section.

6—Amendment of section 26—Contravention of orders

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

7—Amendment of section 28—Formal requirements in relation to domestic building work contracts

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

8—Amendment of section 29—Price and domestic building work contracts

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

9—Amendment of section 30—Payments under or in relation to domestic building work contracts

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

10—Amendment of section 31—Exhibition houses

The amendments in this clause increase existing penalties applying in relation to the offence set out in the section.

11—Amendment of section 34—Requirements of insurance

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

12—Amendment of section 37—Powers of court in relation to domestic building work

The amendment in this clause increase existing penalties applying in relation to the offence set out in the section.

13—Insertion of sections 47A to 47D

This clause inserts new sections as follows:

47A—Licensed building work contractor must not contract with unlicensed person

The proposed section makes it an offence for a licensed building work contractor to contract with a person to carry out building work on behalf of the licensed building work contractor unless the person holds a building work contractors licence of the appropriate class under the Act.

The offence does not apply to a building work contractor who is exempt from complying with section 6 of the Act in respect of the relevant building work or in circumstances prescribed by the regulations.

47B—Building work contractor not to use another person's licence number etc

The proposed section sets out the following offences applying to a building work contractor in relation to building work performed, or to be performed, by the building work contractor:

using or referring to a licence number that is not the licence number assigned to their licence by the Commissioner in a manner that is intended, or is likely, to mislead or deceive another person into believing that the building work may lawfully be performed under the authority of that licence;

using or referring to a licence number that is not the licence number assigned to their licence by the Commissioner when obtaining builders indemnity insurance;

directly or indirectly representing that the building work will be 15 performed under the authority of a licence other than a licence held by the building work contractor;

using or referring to a licence number in a manner that is intended, or is likely, to mislead or deceive another person into believing that the building work may lawfully be performed under the authority of that licence.

47C—Offence to hold out as licensed etc

The proposed section sets out the following offences:

a person who is not licensed under the Act holding themselves out, or permitting another person to hold themselves out, as being licensed under the Act;

a person who holds a building work contractors licence with conditions holding themselves out, or permitting another person to hold themselves out, as holding a licence that is not subject to conditions;

a person who holds out another as being licensed under the Act if the person is not so licensed.

47D—Offence to hold out as registered etc

The proposed section sets out the following offences:

a person who is not registered under the Act holding themselves out, or permitting another person to hold themselves out, as being licensed under the Act;

a person who holds a building work supervisors registration with conditions holding themselves out, or permitting another person to hold themselves out, as holding a registration that is not subject to conditions;

a person who holds out another as being registered under the Act if the person is not so registered.

14—Amendment of section 48—False or misleading information

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

15—Amendment of section 49—Name in which building work contractor may carry on business

The amendments in this clause increase existing penalties applying in relation to the offence set out in the section.

16—Amendment of section 50—Publication of advertisements

The amendments in this clause increase existing penalties applying in relation to the offence set out in the section.

17—Amendment of section 51—Licensed building work contractor to have sign showing name etc on each building site

The amendments in this clause increase existing penalties applying in relation to the offence set out in the section.

18—Amendment of section 58—Prosecutions

This amendment allows offences to be expiated within 2 years of the date on which the offence is alleged to have been committed.

19—Amendment of section 62—Regulations

The amendments in this clause increase the amount of the penalty that may be applied in relation to an offence in the regulations.

20—Amendment of Schedule 3—Transitional provisions

The amendments in this clause increase existing penalties applying in relation to the offences set out in the section.

Part 3—Amendment of Fair Trading Act 1987

21—Amendment of section 8A—Conciliation

The amendments in this clause increase existing penalties and expiation fees applying in relation to the offences set out in the section.

Part 4—Amendment of Magistrates Court Act 1991

22—Amendment of section 9—Criminal jurisdiction

The amendments in this clause increase existing penalties and expiation fees applying in relation to the offences set out in the section.

Part 5—Amendment of Plumbers, Gas Fitters and Electricians Act 1995

23—Amendment of section 6—Obligation of contractors to be licensed

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

24—Substitution of section 12

This clause substitutes a new section 12, providing an offence in relation to who can carry out certain work, with penalties commensurate with those inserted or amended by this measure.

25—Amendment of section 13—Obligation of workers to be registered

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

26—Amendment of section 25—Contravention of orders

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

27—Amendment of section 32—False or misleading statement

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

28—Amendment of section 33—Name in which contractor may carry on business

The amendments in this clause increase existing penalties applying in relation to the offence set out in the section.

29—Amendment of section 33A—Publication of advertisements

The amendments in this clause increase existing penalties applying in relation to the offence set out in the section.

30—Amendment of section 33B—Requirements for contracts for domestic plumbing, gas fitting or electrical work that contain a charging clause

The amendment in this clause increases existing penalties applying in relation to the offence set out in the section.

31—Amendment of section 40—Prosecutions

This amendment allows offences to be expiated within 2 years of the date on which the offence is alleged to have been committed.

32—Amendment of section 44—Regulations

The amendments in this clause increase the amount of the penalty that may be applied in relation to an offence in the regulations.

Debate adjourned on motion of Mr Teague.