IR & LEGAL UPDATE KRISTIE BURT Workplace Adviser – ACT/Southern NSW WHAT’S CHANGING? Proposed WHS changes, GST on settlement and dealing with underperforming employees There have been a number of big as a construction project with a value of HIA has strongly opposed these changes in the industry recently more than $5 million and excludes a single changes as it moves away from the national that will impact on members’ residential dwelling. harmonised WHS laws. Consequently, HIA compliance. These include the If passed, these changes will come into has been lobbying Ministers at both the local proposed amendments to the WHS effect from 1 January 2019. The changes and federal levels regarding the implications legislation in the ACT, national changes will require a principal contractor to: that these changes will have to the WHS to the process of collection of GST at • consult with an eligible union about culture in the ACT construction industry, settlement in some property transactions ‘the number and composition of work should the Bill be passed. and an increase to the minimum rates groups to be represented by a health under the modern awards. As always, and safety representative (HSR) on a GST at settlement HIA is working to get the best outcome for major construction project, as well as Changes to the rules for the payment members, and providing timely updates on the number of HSRs (and deputy HSRs, of GST at settlement on the sale of new any changes. if any) to be elected residential properties came into effect from facilitate the election of HSRs and 1 July 2018. Proposed changes to ACT WHS • the formation of a Health and Safety These changes involve a new withholding legislation Committee (HSC) arrangement now require the purchaser of An amendment bill was tabled in the ACT provide training for the HSRs and the property to withhold an amount specified • by the vendor (an amount equivalent to the Legislative Assembly on 7 June 2018 with members of the HSC. GST) and then remit this directly to the ATO the intention of enhancing collaboration A failure to comply with any of these and consultation under the existing WHS requirements can result in a strict liability at the time of settlement. legislation. These changes apply to ‘major penalty of $50,000 for a body corporate or These changes apply to contracts construction projects’ being defined $10,000 for an individual. entered into on or after 1 July 2018 or where entered into prior to 1 July 2018, where the first payment for the supply (other than the deposit) is not made until a time on or after 1 July 2020, and where there is a GST liability that exists as part of the property transaction. There is no new GST liability created. Property transactions affected by these changes will apply to the sale of new residential lots, ‘off-the-plan’ development and the sale of ‘house and land packages’, including spec homes. Standalone building contractors or construction contracts which do not include the sale of land will not be affected by the changes. You can obtain further information from ATO, by speaking to your conveyancer or solicitor or by contacting HIA. Modern award increases The new modern award rates on 1 July, so are now in force. If you require a copy of the updated rates of pay under a modern award, please contact me or the InfoCentre. P10 BUILDING NEWS ISSUE 3/2018