Construction Industry Long Service Leave and Benefits Amendment Bill 2015
SERIAL No. 112

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

MINISTER FOR BUSINESS

EXPLANATORY STATEMENT

GENERAL OUTLINE

The purpose of this Bill is to amend the Construction Industry Long Service Leave and Benefits Act to:

·	streamline and simplify the constitution of the NT Build board provisions to facilitate the appointment of a balanced board with broader skills and knowledge of the Territory construction industry;

·	reduce the number of qualifying service days a worker needs to be credited with a year of long service leave credit from 260 days to 220 days; and 

·	clarify the way the levy will be calculated for major construction projects by ensuring the rate determined by the Minister in relation to the over $1billion threshold amount equates to the assessed liability accrued to the Scheme.

NOTES ON CLAUSES

Clause 1.	Short Title

The Bill when passed will be called the Construction Industry Long Service Leave and Benefits Amendment Act 2015.
Clause 2.	Act amended

The Bill when passed will amend the primary Act, being the Construction Industry Long Service Leave and Benefits Act.

Clause 3.	Section 5A inserted

This is a new clause inserted to ensure that offences under the primary Act are compliant with Part ll AA of the Criminal Code.

Clause 4.	Section 15 amended

Subsection 15(2) (Qualifying service) is amended by replacing the reference of “260” days to read “220” days, reducing the maximum number of qualifying service days that a worker can be credited with in any financial year period. 

Clause 5.	Section 16 amended

Subsection 16(1) (Long Service Leave credits) is amended by replacing the reference of “260” days to read “220” days, providing for a worker to be credited with 6.5 days of long service for each 220 days of qualifying services credited.

The Example for section 16 is amended by replacing the reference of “260” days to read “220” days, thereby illustrating that a worker who has been credited with 220 qualifying services days each year for a 
10 year period will earn the full long service leave credit of 65 days. 

Clause 6.	Section 33 amended

Subsection 33(5) (Amount of levy) is omitted and replaced with new subsections 33(5) and 33(5A) to make the provisions clearer and more logical. 

Specifically, subsection 33(5) is amended to clarify that, before the Minister can determine a project specific levy percentage rate for the over $1 billion threshold excess amount, the actuary for the Scheme must first be asked to provide the Minister with a report as mentioned in section 91(6).
A new subsection 33(5A) is added to ensure that, after considering the actuary’s report, the project specific levy percentage rate set by the Minister for the excess amount will yield sufficient funds to cover the cost of the assessed long service leave liability accrued to the Scheme by the registered employees working on the particular project.

A minor adjustment to subsection 33(6) is made to ensure the definition for determined percentage under section 33 applies to the above changes.

Clause 7.	Section 35 replaced 

Repeals section 35 and a new section 35 (When levy must be paid) is substituted. This section is drafted to ensure the reworked offence provision complies with Part ll AA of the Criminal Code and provides a clear distinction between the authorities and conditions for when the levies attributed to the cost of construction work that is below the $1 billion threshold and the excess amount where the cost of the construction work is more than $1 billion must be paid.

Clause 8.	Section 44 amended 

Subsection 44(1) (Payment by instalments) is amended to clarify the distinction between the matters that are within the scope of the NT Build Board’s authority and that of the levy component related to the over $1 billion threshold determined by the Minister.

Clause 9.	Section 46 amended 

Subsection 46(1) (Assessment of levy) is amended to clarify the distinction between the matters that are within the scope of the NT Build Board’s authority and that of the levy component related to the over $1 billion threshold determined by the Minister.

Clause 10.	Section 48 amended 

Subsections 48(a) and 48(b) (Board’s power to extend time for payment etc.) are amended to clarify the distinction between the matters that are within the scope of the NT Build Board’s authority and that of the levy component related to the over $1 billion threshold determined by the Minister.
Clause 11.	Section 54 amended 

Subsections 54(2)(b) and (c) (Constitution of Board) are omitted to replace the restriction requiring the Minister to only appoint two representatives each from organisations representing the interests of employees and employers in the Territory with a simplified provision to appoint four persons.

New subsection 54(3A) instructs that only a person whom the Minister is satisfied holds suitable qualifications, knowledge or experience relevant to the functions of the Board may be appointed to be a board member.

New subsection 54(3B) restricts the number of public sector employees who can be appointed to the Board to a maximum of two.

Clause 12.	Section 61 amended 

Subsection 61(2) (Acting appointment) is omitted and replaced with a new subsection that reflects the need for a person to also satisfy the suitable qualifications, knowledge or experience requirements to be eligible for a temporary appointment as an acting board member.

Clause 13.	Section 91 amended 

Subsection 91(6) (Appointment of actuary) is omitted and replaced with a new subsection. When asked to provide a report by the Minister under section 33(5), this new subsection stipulates what the actuary must do and includes; reviewing all relevant material relating to the long service leave entitlement of registered employees who carry out specific construction work; making a recommendation about the percentage that would be needed to be set as the project specific levy determined percentage rate for the over $1billion threshold excess amount; and providing the report and recommendation within the timeframe set by the Minister.

Clause 14.	Expiry of Act 

This clause provides that the Bill when passed will expire the day after it commences, upon the amendments being consolidated into the primary Construction Industry Long Service Leave and Benefits Act.