SA renovators to get living pressure relief under overhaul to controversial SA board

Adelaide renovators could get much-needed hip-pocket relief under plans to overhaul a contentious state government board.

South Australian renovators could get new cost-of-living pressure relief under new plans to overhaul a controversial state government board amid a skills shortage crisis.

The state government will on Wednesday introduce new laws to parliament to reform the Construction Industry Training Board that were urged in a landmark review.

Draft legislation proposes lifting the threshold for when an industry training fund levy is paid while GST impositions will also be removed.

Ministers will also be able to, for the first time, direct how the levy is spent through “clearer functions and powers added to maximise … collection”.

All energy projects will also now be levied, Training and Skills Minister Blair Boyer will announce.

The board, which has been embroiled in various controversies in recent years, receives up to $30m funding from a Construction Industry Training Fund levy from projects to fund training programs.

Under state law, homeowners or builders pay the special industry training cost – currently 0.25 per cent – on the total value on building contracts worth more than $40,000.

But in what authorities described as a “significant change”, proposed changes to construction laws would lift the levy threshold to any project valued at more than $100,000.

The Construction Industry Training Fund (Miscellaneous) Amendment Bill will also remove GST from the calculation of a project’s cost.

Government modelling predicts the threshold hike will cut help more than 3500 projects a year.

It will save homeowners or developers between $100 and $250 and cost the board’s coffers more than $618,000 in revenue.

But officials believe the board’s overall revenue is expected rise from the volume of projects.

Mr Boyer, who is also education minister, said the board’s composition will also be “balanced”.

This will involve four union officials – up from a current two – sit on the board along with the same number each of employer representatives and independent members including its presiding officer.

He said longer term planning “to address current and future skills shortages” will involve a three year plan rather than an annual document.

The changes were urged in the first review of the board in 20 years.

Mr Boyer said: “Now more than ever we need a modern … board with the powers it needs to address current and future skills shortages in the building and construction industry.

“These changes deliver this.”

Current board presiding member, John Chapman, welcomed the reforms.

Opposition spokesman John Gardner said the Liberals would look at details “with an open mind”.

“But it is telling that when the Labor Party talks about ‘balance’, the key measure they seem to be focused on is a massive increase in direct union representation to the board,” he said.

“The last thing we need is for John Setka to be given more power.”

Originally published as SA renovators to get living pressure relief under overhaul to controversial SA board