In February, the Queensland Government announced a series of changes to Queensland’s building regulations, aimed at streamlining processes and reducing red tape as part of a broader effort to improve efficiency and support the building industry.
Some of the changes refer to the Project Trust Account regime and Queensland Building and Construction Commission’s (QBCC) Minimum Financial Reporting requirements we have previously reported on – with future reforms for the industry flagged by Government.
Key changes
Key changes include the following:
- Pausing the rollout of future phases of the Project Trust Account framework to allow for a review and potential adjustments to the framework. The newly appointed Queensland Productivity Commission will include security of payment in its review of the building and construction sector.
- Self-Certifying category 1 and 2 individual licensees will no longer need to submit financial reports to the QBCC.
- Specialist fire workers will have an additional five years to transition to new licensing requirements.
- Plumbers with a QBCC contractor license will no longer need to pay extra for a plumbing occupational license to perform additional fire protection work.
Future reforms
In addition to the immediate changes to the Project Trust Account regime and the Minimum Financial Reporting requirements, the Government has flagged a range of broader reforms to be undertaken in the future, including:
- Introducing a Queensland Housing Code to standardise housing regulations.
- Reviewing licensing thresholds and improving consistency for QBCC licenses.
- Fast tracking the move towards digital platforms in an effort to reduce paperwork and streamline processes.
- Implementing a clear and consistent approach to National Construction Code implementation timeframes and updates.
- Simplifying safety notifications to remove duplication between QBCC, Workplace Health and Safety Queensland reporting.
- Reviewing thresholds, cover amounts, and timeframes for the Queensland Home Warranty Scheme.
- Further reducing the administrative burden associated with trust accounts in an effort to streamline financial management for businesses.
These changes and future reforms are designed to support the building industry by reducing administrative burdens and improving regulatory processes.
While the Project Trust Account changes are welcomed by industry, they were largely expected. While relieving commercial builders from the proposed expansion of Project Trust Accounts to all commercial projects with valued at $3m or more, the reforms do not provide for any relaxation of existing Project Trust Account obligations.
Similarly, the Minimum Financial Reporting relief is confined to small builders with annual turnover less than $800,000. All other builders remain subject to the same Minimum Financial Reporting obligations as previous years, and should be mindful of testing their compliance over the coming months to ensure their end of year financial reports are free of any Minimum Financial Reporting breaches.
