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Review of the Construction Industry Training Fund Act 1993

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    The department provided secretariat support to PEG Consulting for its independent review of the Construction Industry Training Fund Act 1993 (SA) (CITF Act).

    PEG Consulting has concluded the review and provided its final report (PDF 1 MB) to the Minister for Education, Training and Skills. The report was tabled in both Houses of Parliament on 30 May 2023.

    The South Australian Government has accepted the review’s recommendations (PDF 151 KB) and will draft amending legislation.

    About the Act

    The CITF Act was established to improve the quality of training in the building and construction industry.

    It establishes the Construction Industry Training Board (Board) and imposes a levy on building and construction works above $40,000 to fund training and skills development for the building and construction industry workforce.

    The Board is the principal adviser to the responsible South Australian Minister and Commonwealth Minister for Skills and Training on matters relating to training in the building and construction industry and in particular is responsible for, among other things:

    • administering the Construction Industry Training Fund
    • advising the relevant State or Commonwealth Minister on skill requirements and other matters related to training in the building and construction industry; and
    • preparing training plans in accordance with the CITF Act.

    About the review

    Amendments made to the CITF Act in 2019 by the Construction Industry Training Fund (Board) Amendment Act 2019 (Amendment Act) resulted in changes to the composition of the Board, its appointment process and its procedures. Accompanying amendments required the appointment of an independent person to conduct an investigation and review of the reforms implemented by the 2019 Amendment Act.

    To conduct the review in accordance with section 38 of the CITF Act, PEG Consulting was appointed as the independent reviewer. The work was led by Ms Ingrid Haythorpe and Dr Tahnya Donaghy, joint Managing Partners.

    This review primarily considered:

    • effectiveness of the Board in achieving the objects of the CITF Act
    • improving the quality of training in the building and construction industry; and
    • whether the CITF Act adequately improves training outcomes for workers.

    PEG Consulting outlined its approach to the CITF Act review in the CITF Act review PEG Consulting letter (PDF 162 KB) .

    Terms of reference

    CITB composition, administration, and operation

    • Concerning the amendments made to the Act by the Construction Industry Training Fund (Board) Amendment Act 2019:
      • How effective is the CITB, as currently comprised and administered, in attaining the objects of the CITF Act through the exercise of its functions and powers?
      • What opportunities exist to support the achievement of these objects in relation to:
        • the composition of the CITB
        • the staffing of the organisation
        • other governance or operational arrangements?

    Levy

    • Is the current levy rate of 0.25 per cent of the estimated value of building or construction work (or such other percentage not exceeding 0.5 per cent of that value as may be prescribed in regulations) appropriate to meet the workforce needs of the sector?
    • Are the exemptions to paying the levy as described in Section 23 of the CITF Act and in the Regulations appropriate?
    • Is the current levy collection method effective?
    • Are there alternative collection methods that would improve levy collection?

    Allocation of funds obtained through the levy

    • Does Section 32(3) of the CITF Act, which requires money for the provision of training to be allocated to a given sector in “approximately the same proportion” as the amount contributed by that sector:
      • create barriers to holistic workforce and skills development across the building and construction industry?
      • result in challenges addressing any particular areas of need such as upskilling, higher-level training, or cross-sector skilling?

    Training plans

    • What impact does the requirement under Section 32(1) for the CITB to produce a training plan on an annual basis have on:
      • longer term workforce planning
      • addressing longer term skills and workforce requirements
      • investment in multi-year projects or programs?

    Consideration of other models to support industry outcomes

    • Are there any other models for supporting industry training and workforce development outcomes that the reviewer recommends to assist the Construction Industry Training Board achieve its objectives?

    Consultation

    The reviewers met with stakeholders about the matters set out in the terms of reference and developed an issues paper to inform stakeholder submissions to the review.

    Submissions to the review

    Between December 2022 and February 2023, the review received a total of 45 submissions in response to the issues paper. Respondents made submissions through surveys and written submissions, which are published below.

    The department has redacted content contained in some submissions for privacy purposes.

    Key deliverables

    The key milestones of the review:

    • November 2022 – the reviewers developed the issues paper.
    • December 2022 – issues paper and surveys released for public consultation.
    • 1 February 2023 – written submissions and surveys closed.
    • 26 April 2023 – final report provided to the Minister.
    • 30 May 2023 – final report tabled in both Houses of Parliament.

    Recommendations from the review

    The review’s final report made 31 recommendations which aim to:

    • Ensure the Board has relevant skills and represents the views of employers and employees in the industry; and can engage in long term, holistic planning to meet future skills demand;
    • Reduce outdated exemptions under the Act, to increase funding for skills needed for a safe and rewarding career in the building and construction industry; and to attract new entrants to the building and construction workforce. This also recognises that subsidised training made possible by the CITF levy results in transferrable skills that different sections of the industry and consumers benefit from;
    • Increase the threshold for levy payment for individuals and small businesses who currently pay the Construction Industry Training levy on low value building and construction projects;
    • Reduce complexity under the Act to assist end users understand and apply the legislation; and
    • Include objects in the Act that to better guide the Board in the administration of the Fund.

    Resources

    Email: CITFActReview@sa.gov.au
    Phone: 8429 3260