Amendment No. 1 to the Building Code 2013

Administered by Department of Employment, Skills, Small and Family Business

Legislation au F2013L02196 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Employment.

Subject: Fair Work (Building Industry) Act 2012

Building Code 2013

Authority               

Section 27 of the Fair Work (Building Industry) Act 2012 (FWBI Act) provides that the Minister may issue one or more documents that together constitute a code of practice (the Building Code) that is to be complied with in respect of building work.

In accordance with subsection 27(4) of the FWBI Act, before exercising powers under section 27, the Minister must take into account any relevant recommendations of the Federal Safety Commissioner in relation to occupational health and safety matters.

Purpose

The purpose of this legislative instrument is to amend the Building Code 2013 to reduce confusion around the interaction between the Code and concurrently applicable State guidelines as they relate to building contractors and building industry participants. This legislative instrument removes subsection 6(4) of the Building Code 2013 to provide greater certainty to affected building contractors and building industry participants.

The amendment is of a technical nature.

Background

The Building Code 2013 replaced existing obligations contained in the Australian Government Implementation Guidelines for the National Code of Practice for the Construction Industry- May 2012. The Explanatory Statement to the Building Code 2013 explained that it reflected the Australian Government’s commitment to ensuring that participants in the building and construction industry comply with Australia’s workplace relations laws.

Section 6 of the Building Code 2013 sets out when building contractors and building industry participants will become subject to the Code. In general, building contractors and building industry participants will first become subject to the Building Code 2013 when that contractor or participant submits an expression of interest or tender for building work described in items 1 to 8 of Schedule 1 of the Code. Building contractors and building industry participants who were subject to any version of the Guidelines at the date of commencement of the Building Code 2013 also became subject to the Code from its date of commencement. 

Subsection 6(4) provides that the Building Code 2013, the FWBI Act and designated building laws are a comprehensive statement of:

  • the matters that building contractors and building industry participants are required to include, or not to include, in an enterprise agreement; and
  • the workplace practices that building contractors and building industry participants are required to carry out, or not to carry out, in relation to building work; and
  • the arrangements that the building contractors and building industry participants are required to make, or not to make, in relation to building work.

Commencement

This legislative instrument commences the day after it is registered on the Federal Register of Legislative Instruments.

Consultation

Consultation on the amendments contained in this legislative instrument was undertaken with the Federal Safety Commissioner. The Federal Safety Commissioner did not have any comments on the amendments.

The removal of subsection 6(4) of the Building Code 2013 was discussed during a confidential meeting with representatives of employer groups, unions and state governments on 9 December 2013.

The Office of Best Practice Regulation advised that a Regulation Impact Statement is not required (reference 16267).

 

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Amendment No. 1 to the Building Code 2013

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

Section 6 of the Building Code 2013 sets out when the Building Code applies to building contractors and building industry participants. Subsection 6(4) provides that the Building Code 2013, the Fair Work (Building Industry) Act 2012 and designated building laws are a comprehensive statement of:

  • the matters that building contractors and building industry participants are required to include, or not to include, in an enterprise agreement; and
  • the workplace practices that building contractors and building industry participants are required to carry out, or not to carry out, in relation to building work; and
  • the arrangements that the building contractors and building industry participants are required to make, or not to make, in relation to building work.

Amendment No. 1 to the Building Code 2013 amends the Building Code to remove subsection 6(4) of the Building Code. This provision has created confusion around the interaction between the Building Code and concurrently applicable State guidelines. Its removal will provide greater certainty to affected building contractors and building industry participants.

Human rights implications

This instrument does not engage human rights.

Conclusion

The Legislative Instrument is compatible with human rights because it does not raise any human rights issues.

Senator The Hon. Eric Abetz

Minister for Employment

 

 

Overview

The Fair Work (Building Industry) Act 2012 was enacted by the Parliament of Australia to regulate workplace relations and occupational health and safety within the building industry. The Act empowers the Minister for Employment to issue a Building Code to ensure compliance with workplace laws, reflecting the government's commitment to orderly and fair practices in the construction sector. The Building Code 2013, issued under this Act, aims to replace existing guidelines and provide a comprehensive framework for building industry participants. However, the initial version of the Code created some confusion regarding its interaction with concurrently applicable state guidelines, prompting the need for clarification. Amendment No. 1 to the Building Code 2013 was introduced to address this confusion by removing subsection 6(4), thereby providing greater certainty to building contractors and industry participants and ensuring a smoother application of the Code.

Scope and Application

The Fair Work (Building Industry) Act 2012 Building Code 2013 applies to building contractors and building industry participants who are involved in the building work specified in items 1 to 8 of Schedule 1 of the Code. This includes contractors who submit an expression of interest or tender for such work and those who were subject to any version of the Australian Government Implementation Guidelines for the National Code of Practice for the Construction Industry prior to the commencement of the Building Code. The Code applies on a national basis, as it is a Commonwealth instrument designed to ensure compliance with Australia's workplace relations laws in the building industry. The removal of subsection 6(4) aims to clarify the scope of the Building Code in relation to state guidelines, enhancing certainty for industry participants. There are no stated exclusions or thresholds within this legislative instrument, and its application is not extended or restricted through subordinate instruments. The purpose of these amendments is purely technical, seeking to eliminate confusion and provide clearer guidance on the interaction between the Building Code and state regulations.

Key Provisions

The Fair Work (Building Industry) Act 2012 Building Code 2013 (sections 27 and 6) establishes the conditions under which the Building Code applies to building contractors and industry participants. Section 27 of the Fair Work (Building Industry) Act 2012 allows the Minister to issue a Building Code, which must be complied with for building work. Section 6 specifies that building contractors and participants are subject to the Building Code when they submit an expression of interest or tender for building work listed in Schedule 1 of the Code, or if they were subject to the previous Guidelines at the commencement of the Building Code. The recent amendment to the Building Code removes subsection 6(4), which previously stated that the Building Code, the Act, and designated building laws constitute a comprehensive statement on matters to include or exclude in enterprise agreements, workplace practices, and arrangements related to building work. This removal aims to clarify the relationship between the Building Code and State guidelines. The Building Code imposes several obligations on building contractors and industry participants. Firstly, they must comply with the Code when engaging in building work as defined by the legislation. This includes adhering to specific practices and arrangements outlined in the Code and any relevant State guidelines. Secondly, building contractors and participants must ensure that their enterprise agreements reflect the requirements and prohibitions set out in the Code. Thirdly, they are required to maintain workplace practices and arrangements that align with the Code's provisions. These obligations are designed to ensure consistency, safety, and compliance within the building industry. Breaches of the Building Code may result in various consequences, depending on the nature and severity of the violation. For example, failure to comply with the Code could lead to enforcement actions by the Fair Work Ombudsman or other relevant authorities. These actions may include issuing compliance notices, imposing fines, or seeking court orders to compel compliance. Additionally, serious or repeated breaches might result in more severe penalties, such as significant fines or even criminal charges in extreme cases. The exact penalties are determined by the specific provisions of the Fair Work (Building Industry) Act 2012 and any applicable State laws. It is important for building contractors and industry participants to understand and adhere to the requirements of the Building Code to avoid these potential consequences.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.