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«APRIL 2016 Table of Contents Key objectives of the Construction Training Fund The training levy The meaning of construction work Exclusions Resources ...»

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Local Government Authorities (for construction work that requires a building permit):

All Local Government Authorities are collection agents for the Training Fund. Levy forms are available at all Local Government Authorities and the levy can be paid at the time of submitting an application for a building permit. A receipt of payment will be issued by the Local Government Authority together with a copy of the levy form.

Post: Levy payment forms can be obtained by contacting the Training Fund. Return the completed form with cheque made payable to the “Construction Training Fund”. A receipt will be issued by the Training Fund.

Construction Training Fund office: Suite 3, 40 Hasler Road, Osborne Park WA 6017.

Payment can be made direct to the Training Fund by cash or cheque (EFTPOS facilities are not available) between the hours of 8.30am - 4.30pm, Monday to Friday.

Final construction value – adjustment of levy paid If upon completion the final construction value of a project has varied by more than $25,000 (including GST) from that which is nominated on the original levy form, the project owner is required to advise the Training Fund.

The final construction value of a project must be calculated based on all elements included in the original estimated value of the project, which are The sum of the value of all goods (including manufactured goods) forming part of • the construction work Fees payable (not including building permit) • Overheads to be met, profit margin and GST • Labour • Services necessary • The project owner is also required to account for inflation in the normal manner in calculating the final construction value based on the following rates, as nominated by the BCIT Board in accordance with the Act.

2010-2011 3.1% 2013-2014 1.3% 2011-2012 2.5% 2014-2015 2.5% 2012-2013 1.9% 2015-2016 1.9% Where the final construction value is more than $25,000 higher than the original estimated value, the project owner is required to pay an additional sum of levy to the Training Fund.

Where the final construction value is more than $25,000 lower than the original estimated value, the project owner is entitled to a partial refund of the original levy paid to the Training Fund.

Refund of levy payment If a project is cancelled or did not commence, the project owner (the person nominated as such on the levy form and to whom a receipt for payment is issued) can apply for a full refund of the levy paid.

The refund application can be downloaded from the Training Fund’s website at http://bcitf.org/upload/documents/LevyRefundForm.pdf In order to receive a refund of the levy paid, proof of building permit cancellation/notice of cessation in the form of a letter from the Local Government Authority/permit issuing authority along with a refund application should be submitted to the Training Fund.

If construction works are transferred to a new builder under an existing building permit, a refund of the training levy will not be issued to the original builder. The new builder will assume responsibility for any adjustments to the levy based on final construction value.

If a permit for the project was not required as per the Building Act 2011, a statutory declaration (obtained by contacting the Training Fund) along with a refund application should be submitted to the Training Fund to obtain a refund for works that did not commence.

General conditions of eligibility for Construction Training Fund grants and subsidies Eligibility for Construction Training Fund Direct Indenture Grants, Supplementary Skills/OH&S Program subsidies and additional benefits is dependent on an individual’s or company’s ability to demonstrate primary and substantial direct involvement in Western Australia’s construction industry, specifically in on-site construction, installation and/or fabrication activities.

Eligible individuals must be:

Directly employed in the building and construction industry in Western Australia • Directly employed by residential and/or commercial construction companies • undertaking relevant projects in Western Australia Self-employed and undertaking work which is directly involved in the construction • process Where eligibility of an applicant is in question the Training Fund will seek evidence of eligibility via review of a detailed, recent work history and/or evidence of employment.

Ineligible companies/individuals include:

Government departments, agencies and Government employees • Mining, oil, gas and mineral exploration companies • Companies that manufacture, supply or deliver building products • Companies that manufacture, supply, deliver or install non-building products after • completion of the construction process Companies that perform minor maintenance, repairs and/or inspection of elevators and • escalators Companies that provide maintenance or repairs of a minor nature after the construction • phase Carpet laying or floor covering companies and contractors • Unemployed participants If an individual is unemployed at the time of undertaking a short course recognised by the

Training Fund, they must be able to:

Demonstrate that they were directly employed in the construction industry in Western • Australia for a minimum of six months, within 12 months prior to the date of course commencement; or if no recent work experience is involved Have written evidence of a relevant employment offer from an eligible company or • contractor in the construction industry prior to commencement of the training course Unemployed participants may be required to provide additional documentation to assist the Training Fund to process a claim.





Other Although the definition of construction refers to ‘on-site’ activities, under certain conditions subsidies may also be provided to workers whose normal duties may not always require them to attend site on a daily basis. Service providers to the building and construction industry may be eligible for subsidised training in occupational health and safety.

The final determination regarding eligibility rests with the Training Fund.

Direct Indenture grants for employers of apprentices and trainees Construction Training Fund Direct Indenture grants are available to eligible employers of apprentices/trainees in specific qualifications for the building and construction industry.

Apprentices/trainees must be employed under training contract arrangements that are registered with the Department of Training and Workplace development and have an “active” status.

The grant for employers is intended to defray the costs incurred by the employment and training of an apprentice. A list of the qualifications recognised and the grant amounts available to employers is listed further in this document and is also available on the Training Fund’s website bcitf.org Grant amounts The following information is current for all eligible employers with apprentices and trainees that commence on or after 1st April 2015.

The direct indenture grant from the Training Fund has a base rate, dependent on the apprenticeship/traineeship qualification. Base grants range from $3,000 to $10,000 depending on the occupation and term of indenture.

The base rate of the grant attached to each qualification is determined by the Board. The base rate is available to employers of apprentices or trainees resident in the metropolitan area, which covers the region within an 80km radius of the Perth GPO.

Bonus payments Pre-apprenticeship/Certificate II Building and Construction (Trades Pathway) • WACE bonus - A bonus incentive of $2,000 is available to eligible employers for new apprentices commenced on or after 1 April 2014 that have successfully completed a recognised pre-apprenticeship or the Certificate II Building and Construction (Trades Pathway) qualification as part of a Western Australian Certificate of Education (WACE) program during full time enrolment in a WA secondary school. Preapprenticeship/Certificate II graduates must be employed in a recognised trade within 12 months of completing the qualification for payment of the bonus to an employer.

Employment of women - If the new apprentice/trainee is female, the employer may be • eligible to claim an additional supplement of up to $2,000, depending on the nominal tem of the indenture.

Supplements There are a number of additional supplements or special support subsidies which may be available to eligible employers of apprentices and/or trainees.

Regional supplement - An employer may be eligible to claim an additional supplement • of 10% of the base rate of the grant if the indentured apprentice/trainee has a residential address in a region outside the metropolitan area and south of the 26th parallel.

If the apprentice/trainee has a residential address in a region outside the metropolitan area and north of the 26th parallel, the employer may be eligible to claim an additional supplement of 20% of the base rate of the grant.

Indigenous supplement - If the apprentice/trainee is indigenous, the employer may be • eligible to claim an additional supplement of 30% of the base rate of the grant.

Samples

An employer has indentured a non-indigenous female apprentice with a residential address in Albany in a Certificate III Carpentry & Joinery (48 month) qualification. The new apprentice completed a Certificate II Building and Construction Trades Pathway qualification as a VET in

Schools course. The employer may be eligible for a grant based on the following:

–  –  –

An employer has indentured a male, indigenous apprentice with a residential address in Broome in a Certificate III Plastering (48 month) qualification. The new apprentice completed a pre-apprenticeship course. The employer may be eligible for a grant based on the

following:

–  –  –

Making a claim All claims for direct indenture grants must be made directly to the Construction Training Fund.

For apprentices/trainees that have commenced on or after 1st April 2015, the sum of the total grant available is made to an eligible employer in three instalments of equal value.

The first instalment is paid to an employer when the apprentice/trainee has successfully completed six months of continuous, full-time employment (including probation) with the employer; the second instalment is paid at the half-way point of the indenture and the final payment is made when the indenture has been successfully completed.

When making an application for payment of each instalment, an employer is required to submit a relevant application form (available from the Training Fund’s website) together with any supporting documentary evidence required by the Training Fund relating to the employment and training status of the apprentice/trainee, such as a work history or current payslip.

Applications for direct indenture grants should be made to the Training Fund during the time the apprentice is employed. The Training Fund, however, may provide the grant to an eligible employer up to 12 months after the apprentice has successfully completed the qualification.

A grant for employers, not an entitlement

The grant provided to employers is not an entitlement and the Training Fund reserves the right to determine eligibility and the value of the grant to be paid to an employer.

The Training Fund may be required to make adjustments to the value of direct indenture grants, which may affect the amount, if any, paid to an eligible employer during the term of indenture.

Adjustments to grant amounts are likely to result if

• there is a reduction in term of the training contract

• the employer is not the original employer of the indentured apprentice/trainee An employer in receipt of the grant may be required to repay to the Construction Training Fund a portion of the grant, if the apprentice/trainee successfully completes the training contract and is issued a qualification in a timeframe that is less than 50% of the nominal term of the indenture. The amount to be refunded to the Training Fund will be calculated as the value of the grant already paid which exceeds the grant equivalent to the amount of time the apprentice/trainee has actually served in the training contract.

Apprentices and/or trainees indentured with an eligible employer in one of the listed apprenticeships/traineeships may be eligible to claim the Training Fund’s Accommodation Allowance, Supplementary Skills and OH&S Program subsidies as long as their status with the Department of Training and Workforce Development is recorded as active.

Please refer to information on general conditions for eligibility for further details.

–  –  –

Group training organisations Group training organisations (GTOs) employing relevant construction apprentices/trainees are eligible to receive the Training Fund’s employer grants. The grant amounts are identical to those received by direct indenture employers, but are paid in monthly instalments as opposed to the three payment structure for direct indenture employers. GTOs use this funding to reduce costs incurred from employing and training apprentices and trainees, effectively reducing hire-out costs to an eligible host employer.

To be eligible for funding under the Training Fund’s GTO program, the GTO must meet the criteria contained in the Group Training Organisations Funds Management Agreement document, available from the Training Fund on request.

Funding is only available for host employers of apprentices and trainees who are actively and directly involved in on-site construction, installation or fabrication activities in WA’s construction industry. Final interpretation of this requirement, and therefore eligibility determination, rests with the Training Fund.

Funding structure

Funding is provided for each apprentice/trainee employed by the GTO, according to the Training Fund’s determination of the grant amount and based on the apprentice/trainee’s qualification. These grants are paid in arrears on a monthly basis whilst the apprentice or trainee remains employed by the GTO according to the Training Fund’s eligibility criteria.



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