EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 337
Issued by the authority of the Minister for Employment and Workplace Relations
Building and Construction Industry Improvement Act 2005
Building and Construction Industry Improvement Amendment Regulations 2006 (No. 1)
The Building and Construction Industry Improvement Act 2005 (the Act) provides for improved workplace relations practices in the building and construction industry.
Section 78 of the Act provides, in part, that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The Building and Construction Industry Improvement (Accreditation Scheme) Regulations 2005 (the Accreditation Regulations) established an Occupational Health and Safety (‘OHS’) accreditation scheme, administered by the Federal Safety Commissioner (FSC), for persons who wish to enter into building contracts with the Commonwealth or Commonwealth authorities. The scheme is known as the Australian Government Building and Construction Occupational Health and Safety Accreditation Scheme (the Scheme). The Building and Construction Industry Improvement Regulations 2005 (the Principal Regulations) relate to any matters under the Act other than the Scheme.
The Regulations amend the Principal Regulations to allow for the FSC and persons working in the Office of the FSC to disclose information on the OHS performance of contractors accredited under the Scheme:
- to any person, if the FSC believes it to be in the public interest; and
- to other government agencies, including Federal, State and Territory OHS regulators.
The Regulations also amend provisions of the Principal Regulations to prescribe the types of litigation about which industry participants are required to notify the Australian Building and Construction Commissioner (ABC Commissioner).
Disclosure by the FSC
Section 65 of the Act restricts what a person may do with protected information that the person has obtained for the purposes of the Act during the course of employment by the Commonwealth or a Commonwealth authority. Subsections 65(3) and 65(4) of the Act permit disclosure of protected information where the disclosure is for the purposes of the Act or made in the course of the person’s official employment. However, disclosure is also permitted if made in accordance with regulations made for the purpose of subsections 65(3) or 65(4).
The Regulations prescribe additional exceptions to the prohibition on the disclosure of protected information defined by the Act to allow the FSC to disclose information about the Scheme that would promote best practice in OHS in the building and construction industry.
Notification Requirements
Regulation 8.1 of the Principal Regulations formerly operated so that building industry participants were required to inform the ABC Commissioner of all court applications under the Act and the Workplace Relations Act 1996 in which they were involved. This included informing the ABC Commissioner about matters that were unrelated to building work and unrelated to the ABC Commissioner’s role. The requirement in its previous form imposed an unnecessary burden on building industry participants. They had to unnecessarily devote time and resources providing the ABC Commissioner with information that the ABC Commissioner did not need. Equally, the ABC Commissioner had to unnecessarily devote time to dealing with this information, which he/she could not use.
The Regulations amend the Principal Regulations so that notification to the ABC Commissioner is only required where the relevant proceedings relate to building work (as defined in section 5 of the Act).
Consultation in relation to the Regulations was undertaken by the Office of the FSC with selected government departments and agencies, private companies and industry associations.
The Act specifies no conditions that needed to be satisfied before the power to make the Regulations was exercised.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commenced on the day after they were registered.
Overview
The Building and Construction Industry Improvement Act 2005 was enacted by the Australian Parliament to enhance workplace relations practices within the building and construction industry. The Act aims to improve safety and productivity standards within this sector, ensuring that contractors and workers adhere to better occupational health and safety (OHS) practices. The Building and Construction Industry Improvement Amendment Regulations 2006 (No. 1) were subsequently introduced to further refine the framework established by the Act. These Regulations were made under the authority of the Minister for Employment and Workplace Relations and address specific issues such as the disclosure of OHS performance information and the amendment of notification requirements for litigation involving industry participants. The primary objective of these Regulations is to facilitate better transparency and enforcement of OHS standards, thereby promoting a safer and more efficient industry.
Scope and Application
The Building and Construction Industry Improvement Act 2005, as supplemented by the Building and Construction Industry Improvement Amendment Regulations 2006, primarily applies to the building and construction industry in Australia. It sets out improved workplace relations practices and includes provisions for occupational health and safety accreditation. The Act applies to any person or entity entering into building contracts with the Commonwealth or Commonwealth authorities. The Act's scope extends to any activities and conduct associated with building work, as defined in the Act. The geographic reach of the Act is national, applying across all states and territories in Australia. The Act is administered through regulations, which include the Building and Construction Industry Improvement (Accreditation Scheme) Regulations 2005 and the Building and Construction Industry Improvement Regulations 2005, thereby allowing for the creation of additional subordinate instruments to further refine the application and enforcement of the Act. The Regulations specify that the Federal Safety Commissioner (FSC) may disclose information on the occupational health and safety performance of accredited contractors to the public and other government agencies when deemed in the public interest. Additionally, the Regulations update notification requirements, ensuring that only relevant proceedings related to building work must be reported to the Australian Building and Construction Commissioner. The Act itself does not specify any exclusions or thresholds but allows for such details to be defined through subordinate instruments.
Key Provisions
The Building and Construction Industry Improvement Amendment Regulations 2006 (No. 1) provide for amendments to the Principal Regulations, which concern matters under the Building and Construction Industry Improvement Act 2005 other than the Occupational Health and Safety (OHS) accreditation scheme. These amendments introduce provisions that allow for the disclosure of information about the OHS performance of contractors accredited under the Scheme, and modify the notification requirements for litigation to the Australian Building and Construction Commissioner (ABC Commissioner).
Section 65 of the Act imposes restrictions on the use of protected information obtained for the purposes of the Act. However, the Regulations now permit the Federal Safety Commissioner (FSC) to disclose certain information about the Scheme that would promote best practice in OHS. This disclosure can be made to any person if the FSC believes it to be in the public interest, and also to other government agencies, including Federal, State and Territory OHS regulators. This provision is intended to foster transparency and encourage improved OHS practices within the industry.
The Regulations amend the notification requirements outlined in Regulation 8.1 of the Principal Regulations. Previously, building industry participants were required to inform the ABC Commissioner of all court applications under the Act and the Workplace Relations Act 1996, including those unrelated to building work or the ABC Commissioner’s role. This requirement has been modified to ensure that notifications are only necessary when the proceedings relate to building work as defined in section 5 of the Act. This change aims to reduce unnecessary burdens on both industry participants and the ABC Commissioner by limiting notifications to relevant proceedings.
The Regulations also specify types of litigation that industry participants must notify the ABC Commissioner about. By tailoring these requirements, the Regulations aim to ensure that the ABC Commissioner receives information that is pertinent to their oversight role while alleviating the administrative burden on industry participants. The consultation process for these amendments involved the Office of the FSC, selected government departments and agencies, private companies, and industry associations to ensure that the changes are practical and effective.
Breach of these Regulations can result in legal consequences. For instance, unauthorised disclosure of protected information may lead to civil or criminal penalties, depending on the severity and intent of the breach. While the specific penalties are not detailed in the Explanatory Statement, they are likely to be in line with those prescribed under the Building and Construction Industry Improvement Act 2005 and other relevant legislation. Non-compliance with notification requirements may also lead to administrative actions or penalties, which could impact the ability of industry participants to engage in building contracts with the Commonwealth or Commonwealth authorities.