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Over $150 billion has been slashed from the value of Australia’s homes in the last 6 months, with the Reserve Bank giving strong indications further interest rate cuts are in the pipeline.

Official Australian house price figures released by the Australian Bureau of Statistics in mid June confirm Melbourne and Sydney are driving the slump. The data shows Melbourne had its first quarterly price fall in seven years. Sydney has had a third consecutive quarter of house price falls and first full year decline in values since the 2012 March quarter.
In fact all capital cities showed a price decline in the March quarter.

RBA Minutes on construction revealed

Also newly released are the Reserve Bank’s minutes regarding national residential construction activity. RBA members referred to bogged down building approvals which have declined by over 20% across the last year, and now having declined further in April 2019 means that even with a distinct turnaround in sentiment it would take considerable time to translate this into increased construction activity.

Although the speed of falling values in Melbourne and Sydney has slowed compared with earlier in 2019 the Reserve Bank said Perth’s values had “declined markedly”.
The RBA minutes noted that “the housing market will be impacted by the removal of the uncertainty about changes to taxation” – an election outcome if Labor had won.
The RBA also discussed “APRA’s (Australian Prudential Regulation Authority) proposal to adjust its requirement to banks to determine loan applicants’ capacity for borrowing using a specified minimum interest rate”.

Although improving clearance rates In Melbourne (moving from around 50% at the start of the year into the 60% range by June) suggest that home value falls are stabilising, the Reserve Bank stated it was “too early” to determine the overall effects of this increase in rates.

More interest rate cuts are likely – RBA

RBA members clearly indicated that interest rates “would be lower in the period ahead” and that it was appropriate that an easing of monetary policy “would be appropriate”.

The Reserve Bank was keeping a sharp watch on the unemployment rate knowing that developments in our labour market are critical when deciding whether more interest rate cuts are needed.

The RBA stated that a lower level of rates would support “growth in the economy, thereby reducing unemployment”.

Speaking at a property industry summit, Jonathon Kearns, RBA’s head of financial stability said a lift in mortgage arrears did not represent a threat to stability. Tighter lending standards had made it harder for some borrowers to refinance loans. Kearns said of the reports of increasing loan arrears, that banks were allowing loans to stay in arrears longer as a possible response to past “poor lending decisions”.

Kearns noted that in an environment with dropping home values, letting a borrower remain in arrears longer increases exposure of both the borrower, and the lender to more loss.

Melbourne’s most dramatic downturn in property prices since the 1980s has bottomed out and come to an end. The cycle has moved to value growth again, and at least, a sound recovery. Melbourne’s median house value lifted by 0.3% in the June quarter, the first lift since December 2017.
The median is now $818.200 which is about 10% lower than end of year 2017. The median unit price also increased, by 2% across the June quarter, now sitting at $501,000, just 2% below the 2018 peak.
However, the latest figures from (CoreLogic) show Melbourne house values rose 1.4% across August alone, which is quite a jump.

The falls in values across 2018 came after several years of exceptional growth. House prices are still 49% higher than they were in 2013, and unit prices 20% higher.
The most expensive suburbs in Melbourne had the biggest house value falls. In parts of the inner east values fell by as much as 16%. In the inner south values fell by up to 13% across 2018.
However values were virtually unchanged in Melbourne’s west and north west suburbs. Demand in these areas was also supported by high migration heading to those zones.

Blue chip suburbs to recover the fastest

There are signs values in Melbourne’s expensive areas are rebounding the fastest. The latest clearance rates in blue chip suburbs have been among the city’s strongest. The affluent suburbs usually lead sentiment in the overall market so the signs do indicate a turnaround has arrived.
Real estate agents report plenty of upgrade activity as buyers take advantage of the discounted prices we now have. Compared with values at the top of the market in 2017, the discount an upgrader gets when buying into a more expensive home is bigger than the loss they take selling their current home.

Buyers are back at auctions

Agents report more people are attending open for inspections, multiple bidders are competing at auctions and clearance rates are at their highest since 2017. Real Estate news portals are once again reporting auction results where reserves have been smashed.
Regionally, house prices have risen in Bendigo by 5% and in Ballarat by 11% over the last 12 months. However Geelong recorded a 1% rise only, over the last year.
Looking ahead, according to the latest assessment by AMP Capital Chief Economist, Shane Oliver, Melbourne house prices will probably climb 5% over the next 12 months.

Following a year of steep falls, house prices are set to shoot up again, adding $40,000 to values in parts of Melbourne.

Spring has arrived and that usually brings the property market a burst of energy. Melbourne sellers showcase their homes in good weather with flowering gardens. And buyers are organised and ready to make their move.

So will Spring 2019 deliver?

It’s necessary to look at the wider conditions to get a clear picture. The property market for the last year was gripped with worry. Worry at the banks, in the economic markets, and worry about the outcome of the federal election.
But the surprise win by the Liberal Coalition turned one of the main problems on its head. Labor’s plan to end negative gearing would have removed a key strength underpinning property values, and put more downward pressure on the market. That threat has disappeared for now.

Other hovering problems are the US-China trade war. The simmering US Iran conflict. And interest rate cuts in the US as a market insurance measure.
But despite the global issues things are looking up in Melbourne.

Lending is now easier

The last months have brought positive news. The Australian Prudential Regulation Authority (APRA) has relaxed the tight hold on lending restrictions, especially for investors, which makes access to funds easier. We’re not back in zero equity territory again, but lending certainly has been re-energised.

Wages growth is a major factor that brings property values up, but it has been almost non-existent. The economy has been stagnant, especially in retail, which has to compete increasingly with shoppers buying online instead, from everywhere in the world except the local high street.

Seeing the need to stimulate the economy, the Reserve Bank made a couple of interest rate cuts in the middle of 2019, which give home buyers more confidence to borrow.

So where does that leave the property market?

Firstly, confidence is back. Auction clearance rates are running above 70%, which is up hugely from the lows of 40 and 50% over the last year. In the past this kind of demand has led to double-digit home value growth but conditions are different this time. House stock is limited. Vendors are in no hurry to go to market, waiting instead for values to creep up closer to where they used to be in 2017. And there is plenty of new apartment stock to clear at present. As a result, we are likely to be limited to single digit growth over the coming year.

Not a boom, but very good growth

3 to 5% growth over the next 12 months is likely. This is a big turnaround from many predictions last year that the slump would continue.

Agents in Melbourne are reporting multiple bidders at auction with many sale prices exceeding expectations. This is a complete contrast to a year ago when few bidders even raised their hands at auction and most sales were negotiated later.

The top performing suburbs

In Melbourne, the eastern middle ring suburbs are set to deliver the best results. Many of these are blue chip areas that suffered 10% or more drop in value. But they will also be among the quickest to recover, as buyers recognise value and the market rewinds and moves upwards.

Underpinning potential rises in these districts is constant interest from Chinese buyers. High migration to Melbourne is also persistent, adding 130,000 a year. Many migrants are affluent and will buy in the easygoing leafy suburbs in the east. Adding further to this, the Yuan has recently made gains against the falling Australian dollar.

In Sydney, values will bounce back in the inner east, the lower north shore, inner west, and the northern beaches. Sutherland Shire is also promising.

In Brisbane, it will be suburbs within 5 to 7 km of the city.

• The Chinese have scored Australia their top choice destination to invest in property, with 27% of tourists reporting on the Juwai portal they intend to look for property to buy on their next visit.
• Melbourne was ranked by almost 50% of all buyers as their preferred city. Followed by Sydney and Brisbane, with Brisbane noted for its affordability.
• After 24 months of cooling Chinese activity the refreshed interest is likely to spark a new boom in property values. Aided by a depreciated Australian dollar against the Yuan, delivering an 11.1% discount to Chinese investors.

Australia is attracting 1.2 million Chinese tourists every year and about a quarter of those are thinking about buying a residential property, according to a new study by Chinese property portal Juwai.

27% of mainland Chinese international tourists stated they intended to shop for property on their next overseas holiday, with Australia the top buying destination. According to the Juwai report, buyer enquiries have posted two consecutive quarters with year on year growth – for the first time since 2016.
Demand was up 40% in the first quarter compared to a year earlier, then rose by 54% in the fourth quarter.

The figures are impressive, but it must be noted they are coming off a low base. When Australian property prices dropped in 2017, Chinese buyer enthusiasm also fell. Now stability is coming back and so are the buyers.

Chinese buyers prefer Melbourne property to other state capitals

As the Chinese start to renew their focus on Australian property one city is drawing the most interest. The survey states Melbourne attracts 83% more enquiries than Sydney.

40% of buyers rank Melbourne as their number one preference, compared with the less than 25% that rank Sydney tops. Brisbane is growing fast in popularity, attracting 10% of the preference vote.

In fact as the Chinese travel further afield in Australia, they are also considering buying in some of the smaller cities. With Brisbane, Hobart and Canberra being the fastest growing cities in terms of buyer interest. Hobart in particular, leads the growth with 77% more enquiries than in the previous year.
 

Ideal conditions driving the trend

According to Juwai a major factor in the renewed interest is China’s relaxation of controls that were designed to keep people’s money in the country.

Juwai claims a majority of Chinese real estate experts operating in the Australian market agree that the reduction of capital controls is set to boost investment in Australian residential property.

Other factors that boost Chinese demand is the reduction of Australian taxes on foreign buying of residential property in various Australian states. Plus the return of positive price growth in the Australian property market.

But the biggest attraction of all is that Australian property is now looking reasonably cheap.

Those double-digit drops in blue chip home values in Melbourne and Sydney over 2018 have not gone unnoticed. And the Australian dollar has fallen against the Chinese Yuan – by a big 11%.

Juwai believes Chinese buyers are watching the market closely to be sure it is stabilising, before leaping back in, in force in 2020.

And once that money starts pouring in, we are likely to see house prices soar again.

The new Stage 4 restrictions bring not only widespread changes to the industry over the 6 week lock-down period, but business groups estimate a drop of over a billion dollars to the state’s revenue will also result.

As part of the measures to slow the spread of the virus, the new restrictions mean builders are unable to operate at the same levels they had during stage 3, dramatically reducing turnover.

Some builders have closed their doors, where it’s just not viable to continue operating, having far-reaching consequences for supply chain companies, their employees and obviously trades who will need to survive on either reduced, or little to no work.

Let’s hope when restrictions are eased next month we can quickly lift productivity levels, minimising the impact to the industry and the economy.

What are the Stage 4 restrictions for construction sites?

From 1:59 am on 8 August, 2020 the new conditions must be adopted by all working construction sites in Melbourne.

All sites must:

• Have a High Risk COVIDSafe Plan in place that is updated regularly. Where
  practical COVIDSafe Plans should be designed with the input of employees and
  their representatives.
• Permit not more than one worker per four square metres of enclosed
  workspace.

All employees, supervisors and on-site specialists will:

• be prohibited from car-pooling to or from work.
• be required to notify their employer if they share accommodation with a person
  working at another high-risk workplace.
• required to limit any movement between multiple sites and observe enhanced
  Personal Protection Equipment and hygiene measures if they are working
  between sites.

Small-scale construction sites must:

• reduce the number of workers on-site to 5 people, plus a supervisor, at any
  given time.
• limit the movement of workers between different sites wherever possible, and
  only with the appropriate guidance.
• supervisors may move between sites and specialist contractors are permitted to
  move between up to sites per week, observing enhanced COVIDSafe practices.

Large-scale construction sites must:

• be limited to a daily maximum of workers at the site calculated as the higher
  of:
• 25% of their baseline workforce; and
• 5 workers.
  All workers count towards this applicable daily worker limit, with the exception of workers who are specifically dedicated to overseeing COVIDSafe functions in the workplace.

Baseline of the workforce is the average daily number of workers who are on site across the project lifecycle, as derived from the project’s resourcing plan, as at July 31 2020. The resourcing plan and calculation are subject to an audit. Project lifecycle starts from the date of on-site mobilisation and ends at the handover.

• Workers movement between different sites will be limited. Specialist
  contractors who need to move between sites should visit no more than 3 sites per week. All workers who move between multiple sites must observe enhanced hygiene and PPE measures.

Each early stage residential land development site must:

• limit the movement of workers between different sites wherever possible, and
  then only with appropriate guidance.
• follow density restrictions of not more than ten workers per hectare.
• All workers count in the density restrictions.

Application

Do the restrictions apply to all construction sites?

Every construction site must have a High Risk COVIDSafe Plan
and must follow density restrictions, with no more than one worker per 4 square metres in enclosed spaces.

Additional restrictions will apply to:

• Workers who visit multiple sites.
• Early stage residential land-development sites.
• Smaller scale construction sites.
• Larger scale construction sites.

What defines a large scale construction site?

A construction site is considered large scale under these guidelines if it is:

• Permitted to be at completion, more than 3 storeys high (excluding the basement), or
• Bigger than 1,500m2 floor size or
• An office or retail fit-out, or
• Industrial, or large format, or for retail use

What defines an early stage residential land development project?

An early stage residential land development project comprises all the civil works undertaken in open air, large greenfield sites associated with, and preparatory to, the construction of multiple individual residential dwellings on the site (this includes site remediation and site preparation works, construction of any utilities, and construction of the roads, bridges, or stormwater/flood management works and trunk infrastructure).

Once subdivision is under way, construction of that dwelling, on that part of the site, is regarded as a small scale construction project. For a large scale residential development (e.g. a retirement village) with a single entity responsible for the construction – once dwellings have been commenced, this will be considered large scale construction.

What is considered to be a small scale construction site?

A small scale construction site is a site which does not meet the above definition of a large scale construction site.

What is defined as ‘construction of critical and essential infrastructure’?

The construction of critical and essential infrastructure is NOT subject to business operating reductions. It means:

1. the construction or maintenance (including civil works or building activities) of essential and critical infrastructure that is urgently needed for sustaining human health, safety and wellbeing, regardless of whether those activities are privately or publicly funded:
2. any activity prescribed by government from time to time as “State Critical Infrastructure Projects”;
3. construction and maintenance for the purpose of national security or defence; and
4. any activities deemed by Government to have satisfied the test in (a) and are endorsed by the Chief Health Officer on a case by case basis.

It is expected very few activities will meet the above tests. Project proponents may contact COVID-19Team@ecodev.vic.gov.au to apply for a determination from the Chief Health Officer.

What are the rules for civil construction?

All civil works and all building and construction activity (whether privately or publicly funded) are subject to the large scale, small scale, or early stage residential land development project restrictions and tests, unless the activities:

• constitute the construction of critical and essential infrastructure (see above); or
• constitute critical repair to any premises required for emergency and safety (as described in the Stage 4 Restrictions “Permitted Work Premises” published on the DHHS website.

Are restrictions on construction the same in both regional Victoria and metropolitan Melbourne?

No. Further restrictions do apply on all sites in metropolitan areas, under Stage 4 restrictions.

What are the requirements for wearing personal protective equipment by workers on site?

Workers must wear required personal protective equipment at all times. Specialist contractors who move between sites will require enhanced PPE and hygiene measures, and the workers are restricted to attending just one site on any given day.

The Victorian Government is coordinating with industry to ensure worksites have the most appropriate personal protective equipment for every setting.

Industry will be required to have this personal protective equipment and checks will be conducted to make sure they do. If businesses are struggling to get the appropriate personal protective equipment they need, Government is available for advice and support.

Reduced operations requirement

What level of operation is permitted for large-scale construction sites?

Any worksite must not exceed a daily maximum of workers present calculated as the greater of:

• 25% of their baseline site workforce (calculated below); and
• 5 workers.
• All workers count towards this applicable daily worker limit with the exception of those specifically dedicated to overseeing COVIDSafe functions in that workplace.

How is ‘baseline site workforce’ defined for a large scale construction site?

The baseline workforce is the average daily number of workers on the site across the lifecycle of the project, derived from the project’s resourcing plan as of July 31 2020.

The resourcing plan and calculations are subject to an audit.
Project lifecycle commences from the first date of on-site mobilisation and it ends at handover.

What is the definition of a worker?

Worker refers to a person working on a site inclusive of, but not limited to, owners, managers, employees, contractors, workers on labour hire, or security.

It doesn’t include workers who are specifically dedicated to overseeing COVIDSafe functions in the workplace e.g. workers engaged in additional cleaning of high-touch points or who are overseeing the implementation of COVIDSafe practices.

Workers do not include deliveries and suppliers (e.g. concrete testers or similar) only present onsite for a short period. These brief visitors do not count towards the daily worker limits.

What is the definition of specialist contractor?

• Mobile Cranes – Operators and dogman
• Tile layers
• Concreters
• Gold Class riggers
• Plumbers
• Electricians
• Vertical access Riggers
• Welders
• Precast installers
• Steel fixers
• Post Tensioners
• Truck Drivers
• Corkers
• Asphalters
• Carpenters
• Plasterer
• Floor layers
• Scaffolders
• Internal Glaziers
• Solar installers
• Security system installers
• Carpet layer
• Sprinkler fitters

What about architects, surveyors, engineers, building inspectors and auditors?

Workers providing architecture, surveying, engineering, building inspection or compliance services or other statutory function must work from their home where possible.

When these people attend sites for inspection or safety purposes, they are counted as workers. Workers in this category who move between sites should visit no more than 3 times a week, except when those visits are required in order to meet a minimum statutory obligation, or requirement.

What about specialists providing safety services?

Specialists who install critical OHS equipment such as scaffolding, guardrails, safety rails, stair void protection systems, or other critical safety equipment/installations, and people who conduct safety inspections and training talks, are not limited to 3 sites per week.

Documentation

What is the documentation required?

Specified worksite operators are required to declare in an attachment to their COVIDSafe Plan:

• the location and nature of activities undertaken at sites intending to continue
  under restricted operations;
• (if applicable) baseline workforce levels calculated for each site, with methodology and time period, used to establish those levels;
• the restricted workforce levels that are proposed for each site during the restriction period, calculated to comply with the order; and
• that the operator retains and agrees to make available for inspection, thebusiness records and calculations used to establish the required restricted workforce levels, and to demonstrate compliance with those restricted workforce levels, through the Stage 4 restriction period.

Compliance and enforcement

The Government is introducing a specific worksite reporting regime, supported by independent compliance reviews, with site inspections. This process is being established to make sure the specified worksites comply with the intent of the order, and can provide independently verified evidence of compliance during and after the restriction period.

What documentation do I need to retain?

The COVIDSafe Plan and attachment (specified above) must be retained, and available for inspection upon request. Otherwise it will not be submitted to, or endorsed by the Victorian Government.
Operators are also required to retain and make available for inspection, evidence of compliance with the daily workforce limits, which includes roster, time and attendance, payroll and other work site attendance records.

Who will enforce these restrictions?

Authorised officers will undertake site inspections for workplaces that are subject to reduced operation requirements, to ensure that they comply to new regulations and have a complete High Risk COVIDSafe Plan.

How will compliance be monitored?

Site operators are to be randomly selected for independent compliance reviews and asked to demonstrate their compliance with the order.

To facilitate these compliance reviews, which will take place both during and after the Stage 4 restriction period, operators are required to retain and produce for inspection site rosters, time and attendance data, payroll data and other site attendance records as requested.

The compliance reviews will be conducted by independent agents, who are appointed by the Victorian Government for this purpose.

Frequently asked questions:

Can solar installations be continued?

Solar panels are not permitted to be installed on residential properties under the Stage 4 restrictions. But critical repairs can be done where required – in an emergency, or for safety reasons.

Solar panels are able to be installed at construction sites, including residential renovations where the home is completely vacated, provided the specialist contractors observe the worksite’s COVIDSafe Plan and conform to the daily workforce caps.

Can renovations proceed?

Trades people and builders can only visit your home for renovations if the property is fully vacated with no one staying there during the period of Stage 4 restrictions.

Granted the property is vacated, renovations can proceed in line with the restrictions for residential construction.
If people are still living at the property, then builders and trades people can only make emergency repairs.

For any further clarification about how Stage 4 Restrictions apply on SAW work sites, please contact us.

Timber is a cost efficient building material and has plenty of great characteristics for outdoor structures. Steel on other hand has great load bearing qualities and is non-flammable. We compare the pros and cons of the materials here.

What are the advantages of timber?

Timber is easily available. It’s easily sourced from building material suppliers.

Timber is safe. Timber is non-toxic. It is safe to handle and even as it ages it will not cause damage to the environment. It’s also safe to recycle and maximises Green Star Energy ratings and carbon credits.

Timber is sustainable. Most timbers these days are sustainably harvested and it’s a renewable resource.

Timber’s easy to work. Machinery can easily cut, drill and prepare wood to the required size and shape. Even hardwood timbers are easy to work with, compared to other building materials like steel.

Timber is cost effective. It has less steps to process than many other building materials, therefore less to produce.

It’s versatile and visually appealing. Coming in many grades and species gives timber a huge reach across many different uses and applications. Visual grade timbers, for external and internal use, create natural textures that add great appeal to architectural and design features.

Timber is anti-corrosive. Unlike steel and many other building materials, timber doesn’t corrode in salt air or heavy industrial environments. Timber insulates. Timber is a natural insulator, which adds to energy efficiency, reducing a home’s power bill.

What are the disadvantages of timber?

Timber is natural and cellular. Wood frames need to settle a little after construction, but then remain stable.

Poorly maintained timbers may be prone to rot, pest and mould attack.

Timber maintenance is sometimes seen as more demanding than other building materials. Timber can silver or look old if it’s left unpainted or natural.

What are the advantages of steel?

Steel is strong and robust. Steel has the highest strength-to-weight ratio of any conventional load-bearing framing system.

Steel is highly fire-resistant. Being non-combustible and very resistant to fire, steel is an ideal material for building in bushfire regions. The current climate conditions are increasing the expanse of bushfire danger zones. Additionally, in the event of fire, steel doesn’t release smoke, carbon dioxide or VOCs (Volatile Organic Compound).

Steel is resistant to bugs. Insects can’t harm steel and are less likely to be attracted to it. Even if the rest of the home is attacked by damaging insects the primary structure remains sound.

Steel doesn’t warp. Steel won’t settle, twist or warp over time. And it lasts indefinitely.

Steel is completely recyclable. Wood can be down-cycled, but steel is 100% recyclable.

What are the disadvantages of steel?

Steel is more difficult to insulate because it’s a natural conductor. In colder months and climates the entire frame drops in temperature if it’s not thoroughly insulated. This leads to higher energy costs and increased bills.

While steel is immune to rot, rust can be a problem. If the metal’s exposed to damp, standing water, or a major leak for long periods of time, it corrodes. If left untreated, this rust will lead to costly repairs.

Cost-wise, metal frames are much more expensive. It’s claimed metal frames cost 10 and 20% more than wood. Extra materials like fasteners and electrical boxes are needed to complete the frame and it all adds up.

In a coastal environment, the use of steel frames can be risky. With constant salt air and moisture-laden wind producing corrosive conditions.

So which is the better building material?

This depends on the purpose of construction. Both materials produce quality foundations, but steel is usually more expensive.

Working with steel can be more labour intensive, because more construction professionals have experience with wood than with metal. Looking forward long term for the home owner, extra expense may occur with steel, if an owner adds an extension or modifies walls.

Like most things timber and steel frames both have their positives and negatives. At the end of the day, it’s a choice that comes down to what works best for your particular location, and your particular budget.

The plan for the Geelong City Deal has been released outlining $370 million building plans for Geelong and the Great Ocean Road zone.
The Geelong City Deal Implementation Plan delivers a platform to increase tourism, add economic diversification and build a thriving city centre.

The City Deal embraces major projects like the upgrade of Apollo Bay Harbour, Point Grey in Lorne and the development of a world class coastal walking trail. The Queenscliff Ferry Terminal will be redeveloped.

Planning will commence for a new 1000 seat waterfront exhibition and convention centre, poised to enhance Geelong’s position as a premier city, with the project plan due in mid 2020. Deakin University’s Geelong Future Economy Precinct will also be expanded.

Another major development is the Geelong Waterfront Safe Harbour Precinct (GWSHP) Project, in collaboration with the Royal Geelong Yacht Club. This will involve the installation of a new marina arm and casual berthing and new wave attenuator. Other improvements include increased pedestrian and cyclist access across the precinct. This redevelopment will transform and stimulate the whole city waterfront.

Victorian Minister for Population, Cities and Urban Infrastructure Alan Tudge says the City Deal will mean more jobs, more visitors and more tourists. “More tourists means more jobs.” he said. “Earlier in 2019 we outlined promises to rebuild tourism infrastructure in this iconic part of Australia; today, have are committing to an Implementation Plan to make it happen.”
“The Government is working at its best when all three levels are coming together and agree on a long term master plan.”

Jaclyn Symes, Victorian Regional Development Minister, said all levels of government were committed to the shared vision for Geelong for the next ten years, through the City Deal. “The revitalisation of central Geelong and the waterfront under the City Deal will bring better access, support for tourism, and enhanced community activity and major events.”

Victorian Senator Sarah Henderson said she is pleased to see there’s a clear route forward for priority infrastructure projects for Greater Geelong and the region. She said, “This is one of the most beautiful parts of Australia and the City Deal projects recognise world class tourism infrastructure ins needed to make sure Geelong and surrounds stay one of Australia’s iconic tourist destinations into the future.”

Greater Geelong Mayor Bruce Harwood said with the firm plans in place several important infrastructure initiatives will become reality. “It’s an exciting time for Geelong and the region with projects that will produce employment for our growing community, attracting more tourists to our creative and clever region.”

To improve community safety, Victorian Parliament has decreed that all engineers in Victoria are subject to registration.

The Professional Engineers Registration Act 2019 requires all engineers who provide professional services, or who export engineering services from Victoria, must be registered. This applies to five categories: structural, civil, mechanical, safety and electrical engineering.

The Victorian Government will administer the scheme, enforcing compliance and providing the legislation. The Victoria Building Authority, the Business Licensing Authority and Consumer Affairs Victoria are all involved in making this happen.
But it will be Engineers Australia as an industry association who will assess the qualification, development and the experience of each individual.

The Government believes this is the best way to ensure safety and quality for the community. It’s also a crucial measure for the State Government, which is investing $10.1B a year on infrastructure projects over the next few years.
 

Important step for the profession

According to the General Manager of Engineers Australia, Alesha Printz, the bill makes an important step forward for the profession.

“Presently consumers have no way of knowing if they are working with a currently qualified and competent engineer, or if that engineer maintains standards through continuing professional development, bound by a code of conduct”.

“Introducing the new laws means unqualified people, or people falsely claiming to be engineers will be eliminated. They will be prevented from calling themselves an engineer. And those who don’t uphold the highest standards will face greater accountability, and also penalties”.

More States may follow

Peter McIntyre, Chief Executive Officer of Engineers Australia, said the bill paves the way to the introduction of the same kind of legislation in other states.

According to McIntyre “Queensland has a successful engineer register that’s been in operation since 1930. It shouldn’t need a crisis to make governments act to give the community adequate safety and consumer protection”.

“Engineers Australia publicly acknowledge the initiative of the Victorian Government for moving ahead with this significant community safety reform. We commend all members of Parliament who supported the important new changes”.

“We also urge the other States to follow Victoria’s example and take prompt action to introduce similar compulsory engineer registration schemes”.

The new scheme will start to roll-out in the middle of 2020, with many stages. The introductory process will be complete within three years.

An HIA Member Alert was posted on December 3, 2019 notifying members that WorkSafe inspectors are concentrating on fall prevention and scaffold safety right across Victoria during the next few months.

The focus includes:

• • very close scrutiny on whether all fall prevention controls are in place.
  • ensuring scaffolding is fully complete and fit for purpose.
  • ladders are deployed as the best tool for the task and the ladder use is appropriate.

The scaffold safety and risk management process is of supreme importance in identifying, assessing and controlling risks. The Compliance Code provides the guidelines for duty holders in construction work, under the OHS Act.

Scaffolding fails at Craigieburn

On February 3, 2020 at a construction site in Fortitude Drive, Craigieburn, in Melbourne’s northern suburbs, a large section of scaffolding around a three-story building failed. The collapse crushed a car and two workers.
The two men were rushed to hospital with serious injuries. Three other men were also hurt but went to hospital in stable condition.

Macquarie Park collapse kills apprentice

There was a vastly worse outcome at a building site at Macquarie Park in Sydney on April 2, 2019. An eighteen year old apprentice form-worker lost his life when a large pile of building materials and scaffolding fell on him and another worker at a mixed-use residential and commercial building site.

The cement bricks and steel fell from a height of 17 meters. Bricklayers had been working in the scaffolding, but saved themselves by jumping to a balcony when the steel started to fail. The injured men were working at ground level, when the structure collapsed on top of them. The apprentice’s mother was at the site delivering coffee at the time of the collapse.

There were tense and confrontational scenes as workers and police struggled to deal with the dangerous conditions, with fears of a further collapse and more injuries. The workers were desperate to help their trapped workmates, but the police had to prevent initial rescue attempts until the mass of tangled materials could be assessed.

A dozen emergency crews attended the accident and it took an hour to rescue the older man, who survived.

Strict adherence to the Compliance Code is critical for construction site safety in reducing and controlling risks associated with scaffolding.

The HIA (Housing Industry Association) sent out a Member Alert on November 27, 2019 that the State Government had just passed the Workplace Safety Legislation Amendment (Workplace Manslaughter and Other Matters) Bill 2019. This adds a new offence in workplace manslaughter to the Occupational Health and Safety Act 2004. But a commencement date hasn’t been announced yet.

The HIA’s position on the new bill

The HIA didn’t support this legislation in the form it was proposed. The HIA engaged vigorously with Government MP’s, with cross-benchers and with the opposition trying to get amendments. There were serious concerns about the content. The offence does not include most employees, which is not in line with Occupational Health and Safety Laws. The offence fails to acknowledge that safety in the workplace is shared responsibility. The introduction of the new offence will not necessarily help safety standards and produces the impression that employees aren’t responsible for their own safety.

The HIA also pointed out major concerns about failure of protection against self-incrimination for duty holders within the OHS Act, who are subjected to less rights than people charged with other criminal offences. Also, there are concerns it’s unfair to small and family businesses.  The Victorian Government took the simplistic standpoint that simply the discretion to prosecute, or not prosecute, would provide enough protection for small business owners who are facing the risk of being prosecuted for a death in the workplace. The HIA wanted amendments in these key points and is very disappointed that despite the vigorous debate, the HIA’s concerns were ultimately ignored and not included in the Bill.

What is the likely application of the offence?

HIA members take workplace safety very seriously and take every measure to avoid a death in the workplace. But the HIA points out that not every death in a workplace will bring a prosecution or conviction of manslaughter. For WorkSafe, it will not be easy to prosecute these causes, and excluding employees who only owe a duty under section 25 of the OHS act further reduces the possibility of prosecutions.

It’s fair to acknowledge that Community expectations demand that deaths in the workplace can lead to prosecutions and jail terms. This however puts more pressure on employers and duty holders who are already addressing their safety requirements. But the new offence appears to send a message to employees that they will not be responsible if their own failure to follow OHS requirements results in a death.

Employers, contractors, businesses, suppliers of plant and equipment, and occupiers of premises will all be subjected to the new workplace manslaughter offence – but an employee whose omissions or direct actions contribute to, or cause a death, are likely to be subject to the rarely used common-law manslaughter offence.

The debate in Parliament noted that the offence will not make employers responsible for the actions of rogue employees. But this is small comfort when the offence produces the likelihood that employers can go to jail for the criminal negligence of an employee, but that employee will not go to jail.

The HIA will continue to notify its members about the ramifications and commencement date of the offence.

For more information on this Bill, HIA workplace services advisors can be contacted on 1300 650 620.