The state government has announced its plan to double the building industry training levy.
As has been foreshadowed by
QBR since early last year, a regulatory impact study released today proposes to increase the levy from 0.05% to 0.1% of the value of projects over $80,000.
The change to the Building and Construction Industry Training Fund (BCITF) is forecast to create up to 2,000 more apprenticeships in the industry.
Currently, Qleave collects a 0.05% training levy as part of the 0.175% portable long-service leave fee.
The government proposes to "identify" the training contribution as a separate levy and increase the amount to 0.1%.
This would require an amendment to the
Building and Construction Industry (Portable Long Service Leave) Act 1991 and
Regulation 2002 to introduce a new training levy at 0.1%, with the current component of the long service leave levy used for long service leave payments remaining at 0.125%.
"The proposed increase will mean that an amount of $2.25 in every $1,000 of leviable building and construction work will be payable for training and long service leave purposes compared with a previous payment of $1.75 in every $1,000," Employment, Training and Industrial Relations Minister Tom Barton says.
If introduced, the levy will invest an estimated $24 million a year in training for the building and construction industry. Companies will be able to apply to access funds for training programs.
While, the current levy has been successful in the allocation of resources to support the employment of over 4,700 additional apprentices and the up-skilling of over 16,000 existing workers, Barton says the provision for training has not grown in line with industry needs.
"The industry knows it needs to take action to address persistent skill shortages resulting from an ageing workforce and low training rates," he says.
Master Builders Queensland executive director Graham Cuthbert strongly supports the levy increase.
"Queensland has a clear and immediate skills shortage problem. This initiative has the strong support of the MBQ as a means of addressing this and opening opportunities for new apprentices, as well as the retraining of existing workers in the industry," he says.
The proposed levy of 0.1% compares with 0.18% in Western Australia, 2% in Tasmania and the ACT, and 0.25% in South Australia.
Copies of the regulatory impact statement can be downloaded from
here or by telephoning 1300 668 127.