{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research & forecasting Economics Housing outlook Tailored market research Economic reports & data Inspiring Australia's building professionals Business & digital Products & innovation Projects HOUSING Online The only place to get your industry news Media releases Member alerts Submissions See all
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Planning & safety solutions Building & planning services How can safety solutions help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan Advertise jobs Trusted support & guidance Contracts & compliance support Professional services Industrial relations Member savings Toyota vehicles Fuel savings Handy pay See all
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2023 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping & delivery Purchasing T&Cs See all Products Purchase NCC 2022 Building codes & standards Economic reports Hard copy contracts Guides & manuals
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Training levies

HIA supports initiatives that encourage training within in the industry, however, with respect to compulsory levies considers there needs to be improvement in governance arrangements to ensure better industry engagement with decisions making and more equitable distribution of training funds.

HIA's Position Statement

  1. HIA shall continue to support the need for training in the housing industry - both entry level training and ongoing professional development.
  2. HIA shall not oppose training levies and will work positively and co-operatively with Governments and levy bodies provided that:
    • governance structures are effective and provide the best outcome to address training needs for the housing industry
    • the housing industry is recognised within the structure of levy bodies with housing specific advisory committees informing the applicable state or territory levy body of the most appropriate disbursements of funds within the industry
    • HIA is represented at levy board and housing specific advisory committee level in both a participant and a leadership capacity so as to ensure positive training outcomes for HIA members, subcontractors and independent small businesses in the housing industry
    • funds expended for training in the housing industry are in proportion with the funds raised by the industry
    • businesses shall be exempt from the training levy where a comparable sum of contribution is directed to accredited entry-level training
    • funding is made available to entry level training as the highest priority, to meet long term industry needs and benefit the industry as a whole (including subsidising the cost to group training organisations of providing 1st and 2nd year apprentices);
    • the proportion of levies spent on administration is minimised and
    • training levy administrators are not involved in training delivery but in ensuring the training levies are spent in an accountable and transparent way.
  3. In States and Territories where no levy exists, HIA will work to promote industry investment in training and professional development.

Background

  • The Training Guarantee (Administration) Act 1990 provided for the Australian Guarantee Scheme. The scheme required organisations with an annual national payroll above a prescribed level to spend at least a minimum percentage of that payroll on structured training activities, or else pay the shortfall amount to the Australian Tax Office. The scheme was suspended on 1 July 1994 and formally ended on 1 July 1996.
  • An evaluation suggested that there were a number of shortcomings of the scheme that impeded its ability to improve industry training.
  • State based Industry Training Levies were proposed as an alternative and now exist in Western Australia, South Australia, Tasmania and the ACT. Queensland does not have a training levy, but does have training funds through an allocation of money from the Portable Long Service Leave fund.
  • The collection of training levies various across the states with money generally being collected at the time of building approval and paid by the client.
  • Membership of governing boards are generally very broad and include employee as well as employer representation.
  • Distribution of levy funding is a concern, particularly, where there is no separation of the collection or proportionate disbursement of levy funds to industry sectors required to make contributions to the schemes.
  • The primary argument by industry against any type of levy is that levies are essentially another form of taxation. With increasing mandatory requirements being imposed by all levels of government and their reluctance to fund them from tax revenue, there is a fear from industry that levies will be used to fund new (and potentially ad hoc) programs, including within areas for industry training.
  • However, the housing industry recognises and supports the benefits of ongoing training and professional development for people operating with the residential building industry.
  • Residential building is a clearly identifiable sector of the building and construction industry, accounting for in excess of 50 per cent of the total value of work carried out each year. Given the significance of the sector and the funds collected where a training levy exists, it is considered reasonable that the residential building industry should be allocated the same proportion of funding expenditure they contribute.
  • There are a number of governance models utilised to operate training levies in the states and territories where they are in place. HIA supports a model where industry is directly involved in the management of training levy schemes to ensure outcomes benefit the housing industry and the practitioners who have contributed to these funds.
  • Governance of training levies does not currently ensure that those industry’s making contributions have a direct voice and role in the provision of strategic training advice and policy development.

Policy endorsed by HIA National Policy Congress:May 2001; Re-endorsed 2013; Amended 2017 (title change); Amended 2018.

Share with your network:
More articles on:
{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find the latest expert advice, guides and much more!
HIA Advocacy
View all $vuetify.icons.faArrowRight
27 Feb
EIE: Changes to create low-and mid-rise housing - NSW

HIA commented on the Explanation of Intended Effect (EIE) which outlines proposed changes to encourage more low-rise and mid-rise housing (December 2023).

22 Feb
Inquiry into the Help to Buy Bill and Help to Buy Consequential Provisions Bill 2023

HIA provided a submission into the Help to Buy Bill 2023 and the Help to Buy (Consequential Provisions) Bill 2023, herein referred to as the Help to Buy Bills.

22 Feb
2024-2025 Northern Territory Pre-Budget Submission

HIA submitted the Northern Territory pre-budget submission to the NT Chief Minister.

21 Feb
Future of local government review

On 20 January 2024 HIA made a submission to the Tasmanian Government on the Future of Local Government Final Report.

20 Feb
Proposed amendments to the Directors Determinations on bushfire hazard areas

On 19 January 2024 HIA made a submission to the Tasmanian Government on proposed amendments to the Director's Determinations on bushfire hazard areas.

16 Feb
Professional Indemnity Insurance Options Paper for Change - NSW

HIA takes this opportunity to respond to the ‘Options for Change’ paper on ‘Professional Indemnity Insurance in the Building and Construction Industry’ (Paper) issued by the Department of Customer Service (DCS) in November 2023.