Compliance for construction businesses in Australia

Industrial manslaughter in most states. White Cards, high-risk work licences, Chain of Responsibility, payroll tax, portable LSL, silica WEL halved. The construction compliance picture.

Construction is the highest-risk WHS environment in Australia. Industrial manslaughter offences now operate in Vic ($19.6M / 25 years), NSW ($20M / 25 years from 2024), Qld ($13.7M / 20 years), WA ($10M / 20 years), ACT, NT and SA. Multiple successful prosecutions since 2023.

Beyond safety: the Hospitality Industry's evil twin is the construction award stack — the Building and Construction General On-site Award, plus state-specific Industrial Relations Acts. Portable LSL schemes apply (CoINVEST in Vic, Q-LEAVE in Qld, MyLeave in WA, ACTLeave in ACT, NT Build, TasBuild, NSW Long Service Corporation).

Below: compliance priorities for builders + subbies + contractors.

1. Primary WHS duty (each state)

PCBUs (persons conducting a business or undertaking) owe a primary duty to ensure, so far as reasonably practicable, the health and safety of workers. Officers owe a personal due-diligence duty. Industrial manslaughter prosecutions started landing in 2023 (Brisbane Auto Recycling QLD, LH Holding Management VIC) — these are individual director liabilities.

2. White Card + High Risk Work Licence

Construction induction (White Card / CPCWHS1001) mandatory for any worker entering a construction site. High Risk Work Licence (HRWL) required for 29 classes including forklift, crane, scaffolding, dogging, rigging, EWP, demolition. State-issued; mutual recognition applies.

3. Silica WEL halves to 0.025 mg/m³ — 1 December 2026

Safe Work Australia's revised exposure standard for respirable crystalline silica drops to 0.025 mg/m³ (8-hour TWA) from 1 December 2026. Engineered stone fabrication is already banned. PCBUs must update air monitoring, controls, health monitoring + worker info.

4. Chain of Responsibility (HVNL)

Every party in the heavy vehicle supply chain — consignors, loaders, schedulers, operators, drivers, consignees — owes a primary safety duty under the Heavy Vehicle National Law. Cat 1 offences up to $3M (corporations) + 5 years prison (individuals). Construction sites are major CoR pinch points.

5. Portable Long Service Leave (state)

VIC: CoINVEST 2.7% (FY26) quarterly levy. NSW: Long Service Corporation. QLD: Q-LEAVE 0.475% levy. WA: MyLeave. ACT: ACTLeave. NT: NT Build. TAS: TasBuild. Construction workers accrue portable LSL across employers within the covered industries — the levy is a separate tax-deductible cost.

6. Subcontractor Statement (NSW + QLD)

Principal contractors must obtain Subcontractor Statements before paying subbies over threshold. Failure to obtain creates principal-contractor liability for the subcontractor's unpaid workers' compensation premium, payroll tax and LSL levy.

7. Modern award compliance

Building and Construction General On-site Award, Mobile Crane Hiring Award, plus various trade-specific awards. Allowances include site, leading hand, tool, travel, distant work. State Long Service Leave layers on top of portable schemes for non-portable workers.

FAQ

Can I just outsource WHS to a consultant?

Consultants can help, but the primary duty stays on the PCBU. Officers (directors, senior managers) owe a personal due-diligence duty under s 27 model WHS Act — that cannot be delegated. Document due diligence contemporaneously.

Is silica only an issue for engineered stone?

No. Concrete cutting, demolition, dry-cutting, tile work, brick cutting, road work, mining and tunnelling all create silica exposure. The new 0.025 mg/m³ WEL applies across all activities — air monitoring required for any sustained exposure.

How does Chain of Responsibility apply to construction sites?

Construction sites are typically 'consignee' or 'loader' parties in the heavy vehicle supply chain. You owe duties to: ensure unloading is safe and within fatigue rules; not require unsafe schedules; check the vehicle's mass and dimensions before unloading.