QBCC announces further changes to Building Licensing
Category : Practice Updates
The Queensland Building and Construction Commission (QBCC) has announced that phase 3 of the Queensland Building and Construction Commission and Other Legislation Amendment Bill 2014 will become effective on 1 July 2015.
Some of the key changes to licensing laws effective from 1 July 2015 are:
Reduction of 5 Year Exclusion to 3 Years
Under the old system, the QBCC would cancel the license of an individual for 5 years if:
- a company of which they were a director (within 1 year of liquidation), was wound up, or
- the individual went bankrupt.
Under the new system, the QBCC will cancel the license of an individual for only 3 years.
The penalty for two defaults (for example liquidation of a company and then bankruptcy of the individual) will remain unchanged. In other words, a life ban for two defaults will still result under the new system.
Only Applies to Building Companies
A banning for being a director of a liquidated company will only apply if the company “directly or indirectly carries out building work or building work services”. Just what this definition extends to will be interesting. For instance, a director of a company that provides site cleaning services may be caught.
On the other hand, a director of a company that runs a retail outlet will not be hit with a ban if that company is wound up.
No Permitted Individual Applications
Previously, affected licensees were able to make an application to become a “Permitted Individual”. Essentially, if the licensee could demonstrate the event of default (bankruptcy or liquidation) was out of their control and they did everything possible to prevent the default, their license could be reinstated. Under the new provisions, this option is not available.
If you would like advice in relation to your QBCC licence, please contact our office.