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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2025-11-25 Daily Xml
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Statutes Amendment (Building and Construction Industry Review - Penalties) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 11 November 2025.)

The Hon. J.M.A. LENSINK (16:21): I rise to speak in favour of the Statutes Amendment (Building and Construction Industry Review—Penalties) Bill 2025. The bill makes a series of amendments across the Building Work Contractors Act, the Plumbers, Gas Fitters and Electricians Act, the Fair Trading Act and the Magistrates Court Act, which is to deal with the compliance and enforcement framework for the building and construction sector, particularly regarding unlicensed operators.

I think we have all heard, over the years, some fairly bad horror stories and some might have experienced issues themselves with substandard work. I think it is always a place that needs updating in terms of means by which we can ensure that those who engage in poor work practices are brought to heel. A large part of what it does is actually increase the maximum penalties, which need to be updated over time. I am not sure why—this is a bit of a diversion—we do not adopt the practice that takes place in other jurisdictions where we have penalty units which would then enable these things to automatically flow through without having to bring them back to parliament, but that is a discussion for another day.

Just in terms of what is in the bill, clause 13 introduces new sections 47A through 47D to create a suite of new offences for licensed building contractors subcontracting with an unlicensed person, using another person's licence number or holding out as a licensed or registered tradie under the act. These offences carry significant penalties.

Clause 18 amends section 58 of the act to extend the timeframe available for prosecutions from six months to two years, which I think is self-evidently very sensible, with an option to extend to five years with the authorisation of the minister. I think we are all familiar with some of the cases that have caused particular grief for people.

Clause 22 amends the Magistrates Court Act to allow offences under other acts amended by this bill to be dealt with in the Magistrates Court rather than the District Court for offences over the value of $150,000. Clauses 24 and 31 similarly amend the Plumbers, Gas Fitters and Electricians Act to extend the timeframe available for prosecution under the act.

My understanding is that, generally speaking, the key stakeholders, which in this case are the Housing Industry Association and the Master Builders Association, support new offences for unlicensed builders but are also concerned about some of the unintended consequences of increased penalties. The Law Society supports the bill, noting in particular that the current penalties might be treated as merely a cost of doing business. With those brief comments, I indicate that we support the bill.

The Hon. R.A. SIMMS (16:25): I rise to speak in support of the bill. I understand this bill will introduce harsher penalties for dodgy builders. It will introduce new offences for undertaking unlicensed building work and penalise builders who falsely hold out to be licensed builders. It will introduce a new offence to prohibit contractors from hiring unlicensed subcontractors.

It will further improve consumer protections by providing Consumer and Business Affairs with greater enforcement tools to support compliance and protect home owners who have been preyed upon by these dodgy builders. I hope this bill stamps out these shoddy builders who have no place in the industry and restores public confidence in smaller builders in the state.

The Greens have also been advocating for the establishment of a public builder, which could step in and complete construction of private builds in circumstances where a builder has gone bust. Under our proposal, the state would acquire an equity stake in the home, which the home owner could pay down over time. I do think it is really unfortunate that we have home owners who have been caught high and dry in circumstances where private builders go bust.

Really, the state has an obligation to do something to help those people. After all, these are people who could potentially lose their life savings and be left literally high and dry, waiting for a house to be completed by a builder who is not in a position to do so. So I do urge the government to consider that proposal, but this building and construction bill is a good start and I am happy to support it on that basis.

The Hon. C. BONAROS (16:27): I rise to make one point that I am hoping the minister might be able to address in his summing-up speech and reiterate the issues that have been outlined by both honourable colleagues who have spoken of the need for this bill.

One of the points, though, that was raised was the establishment of an effective scheme to allow immediate API access to the current licence status of registered subcontractors via the internet. That was certainly a mechanism that was raised to address some of the concerns that have been raised, because it does not exist, as I understand it, today, but it is something that industry has been calling for in order for there to be, I guess, a two-way street in terms of a scheme where you can actually check on the status of a registered subcontractor in real time.

My question to the minister will be whether consideration—and I appreciate I could do this at clause 1—of that was actually taken into account in formulating this bill, or whether it is something the government is willing to undertake further consultation with industry over, as it relates to those elements that are concerning, bearing in mind that this is a juggling act, of course, and we want to be doing everything we can to address the issues that have been outlined by the Hon. Michelle Lensink and the Hon. Rob Simms and to stamp out dodgy builders.

Again, having access to that publicly available, access to that sort of information under that sort of scheme, is one of the things that industry has been, as I understand it, calling for and is not included in this bill before us.

The Hon. R.P. WORTLEY (16:29): I rise to speak on 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 in order to improve the regulatory framework for the support, oversight and management of South Australia's building and construction industry.

The registration and licensing schemes it will establish will lift the standard of building work and improve safety. It will address the risks and challenges brought about by the greatly increased demand for new housing, and it will hold the industry accountable by setting firm requirements for domestic building contracts and specify disciplinary action against workers who try to take shortcuts around these standards.

The provisions of these acts have not been updated for 20 years, so this is well overdue. The updates are in line with the findings of the building and construction industry review initiated in late 2024. The review focuses on protecting consumers while supporting workers in the building and construction industry by enhancing industry compliance.

The bill supports the industry by setting rigid standards, but it also sends a firm message to anyone in the industry not prepared to meet those standards: noncompliance will not be tolerated. It serves as a strong deterrent against shoddy and unprofessional practices by strengthening the penalties already in place but also reduces the barriers to undertaking enforcement options, which puts those prepared to break the rules on notice. Where serious and/or repeat offences occur, Consumer and Business Services will be able to seek higher penalties through the Magistrates Court.

The stronger enforcement options provide CBS with a greater range of penalties and methods to help guarantee compliance and customer protection without creating unfair and unnecessary challenges for traders. The increase to the penalties and the introduction of expiation where applicable will improve the integrity of the South Australian building industry. It will also ensure consumers are safeguarded and will encourage them to use only quality builders who meet the standards.

For the small and medium-size businesses that make up the majority of the state's building industry, trust is an essential commodity. Word of mouth is important to reliable and trustworthy operators, and this bill will protect those businesses who are doing the right thing by penalising and removing those who are not.

CBS strives to work within the industry to promote responsibility and transparency. Additional stages of the building and construction industry review will focus on helping traders meet their obligations by improving industry standards overall. Construction companies and businesses will be encouraged to invest in compliance training and risk management systems. Key stakeholders—the Housing Industry Association and the Master Builders Association—are to be commended for their cooperation in working to strengthen industry standards.

With this bill those standards are set to improve even further. It will be a win not just for consumers but for the reputable businesses within the building and construction industry.

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (16:33): I would like to thank the honourable members who have made contributions: the Hon. Ms Lensink, Hon. Mr Simms, the Hon. Mr Wortley and the Hon. Ms Bonaros. I appreciate the indications of support for the bill. I note that the Hon. Ms Bonaros has asked a question, which I will be able to provide an answer to at clause 1. I commend the bill to the chamber.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

The Hon. C.M. SCRIVEN: Perhaps I could answer the question that was asked by the Hon. Ms Bonaros in her second reading contribution. She asked essentially a question around stakeholders having the ability to check if contractors are licensed. Apparently stakeholders, including the HIA, have raised concerns around this, specifically that it is somewhat difficult to find registration of contractors on the CBS website.

I am advised that the minister has raised these concerns with the commissioner. I can confirm that CBS is reviewing its legacy computer systems, including the current website, with a focus on improving the customer experience. The updating of the licensing system is part of this review, and CBS will work with stakeholders, including the building industry, as part of this review.

Clause passed.

Remaining clauses (2 to 32) and title passed.

Bill reported without amendment.

Third Reading

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (16:36): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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