Qld Contractor Loophole Closure Delayed
The Queensland government has postponed the closure of what many see as a loophole licensing exemption misused by contractors to enter into construction contracts and carry out building work in the state without being properly licensed.
The licensing regime for carrying out building work in Queensland is notoriously the country’s most draconian.
The consequences of falling foul of the prohibition against carrying out building work—or even entering a construction contract—without a licence issued by the Queensland Building and Construction Commission (QBCC) can be dire.
They range from a fine to a complete prohibition against receiving payment for carrying out unlicensed building work.
There are a small number of exemptions to the requirement to hold a QBCC licence—one in particular has been criticised for permitting entities who would ordinarily require a QBCC licence to avoid the need to hold one.
The head contractor exemption in the QBCC Act provides that if a person or entity subcontracts out the whole of the building work to properly licensed subcontractors, that person or entity enjoys an exemption.
For developers, the exemption can be a double-edged sword.