Role of Developers in the Building and Construction Industry
Minister Mick de Brenni has announced at a Ministerial Construction Council (MCC) meeting that a review panel (of up to four experts) will be announced in the next few weeks, tasked with investigating the role of developers in the building and construction industry.
Since the announcement of the review, the Property Council has continued to raise concerns with Government on the impact any potential increase to regulation will have on the industry. Should the review result in a recommendation of a licensing regime, this will have considerable economic and land supply ramifications.
The Terms of Reference for the review have now been finalised, with the Panel asked to:
- Identify who will be considered a developer for the purpose of the review
- Identify any practices and behaviours of developers that are contributing to non-payment and insolvency in the industry
- Determine any risks associated with developers engaging builders in building and construction projects
- The ability of industry regulators, both current and future, to address issues that arise from (2) and (3)
- Any current or proposed regulation of developers under commonwealth, state, territory and international legislation
- Any other relevant matters identified by the Panel or referred to the Panel by the Minister
The Property Council will sit on an Industry Reference Group to be established as part of the review process, and there will additionally be state-wide consultation with stakeholders on the role of developers.
A discussion paper is expected to be released between mid-September and mid-October, with the Panel given 12 months to complete the review.
Head Contractor Exemption
The Minister also confirmed the Government’s intention to re-examine the proposed removal of the head contractor licensing exemption, with its introduction recently postponed until 24 July 2022.
The Property Council supports the retention of this exemption, and had been lobbying Government to amend the legislative provision that would have seen its removal take effect this month.
This 12 month postponement of its automatic removal will allow the Department additional time to hear from stakeholders whether it should be repealed, and to identify any other legislative amendments that may be required in its stead. If any further legislative amendments are required, they are expected to be finalised in the coming months.
The Property Council will provide feedback on whether or not the head contractor exemption should be maintained. If you are interested in providing input into the Property Council’s advocacy on the developer licensing review or the removal of the head contractor exemption, please contact Bryn, Julia or Pallavi at [email protected]