CONSTRUCTION INDUSTRY LONG SERVICE LEAVE AMENDMENTS BILL 2009
SERIAL NO . 58

LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY

TREASURER

EXPLANATORY STATEMENT

GENERAL OUTLINE

The purpose of this Bill is to amend the Construction Industry Long Service Leave and Benefits Act to introduce a $1 billion threshold for large scale construction projects, above which an actuarially determined levy rate would apply.

PART 1 – PRELIMINARY
Clause 1.  Short title
This Act may be cited as the Construction Industry Long Service Leave Amendment Act 2009.
Clause 2.  Commencement
This Act commences on the day on which the Administrator’s assent to this Act is declared, except Sections 3 to 5, which are taken to have commenced on 1 July 2009.

PART 2 – AMENDMENT OF THE CONSTRUCTION INDUSTRY LONG SERVICE LEAVE AND BENEFITS ACT
Clause 3.  Act amended
This Act amends the Construction Industry Long Service Leave and Benefits Act.
Clause 4.  Repeal of section 33 (Amount of levy)
Repeals Sections 33. This section is substituted with a new section 33 (Amount of levy) which introduces a new levy rate to be applied to the cost of construction work in excess of $1 billion. Before determining this percentage, the Minister must consider any report by the actuary in relation to that particular excess amount, as mentioned in section 91(6) (a new section). The new levy rate will apply to construction work started on or after 1 July 2009. In relation to this section, the terms determined percentage, excess amount and prescribed percentage are defined. 
Clause 5. Amendment of section 91 (Appointment of actuary)
Subsection (1) is amended to omit the appointment of the actuary 3 months after the commencement of the Act, and 3 years after the actuary provides the Minister with a report. This allows for the continual appointment of an actuary. 
Subsection (2) is amended to allow the actuary to conduct a review as requested by the Minister, but at least once every three years. 
Subsection (6) is omitted and a new subsection is inserted. The new subsection provides for the Minister to request the actuary to provide a report in relation to the particular construction work and make a recommendation about the rate to be applied to the costs of construction work in excess of $1 billion for that project. The report will consider the liability on the scheme in relation to construction work in excess of $1 billion. 
A new subsection (7) instructs the Minister to table in the Legislative Assembly a copy of this report, or a report under subsection (3) within 6 sitting days after the Minister receives the report.