Federal Safety Commissioner & WHS Accreditation Scheme under review

Why do we have the Commissioner and the Scheme?

The Federal Safety Commissioner (FSC) was established in 2005 to improve the safety culture of the building and construction industry. The FSC is responsible for enhancing, promoting and monitoring safety in the industry and the development and administration of the Work Health and Safety Accreditation Scheme. The FSC is the accrediting authority under the Scheme.

The Scheme leverages the Commonwealth Government's position as a major funder of building work by imposing Scheme requirements on head contractors.

Scheme Application

Subject to certain financial thresholds, the Scheme applies to building work directly and indirectly funded by the Commonwealth. Projects that are directly funded are those procured by the Commonwealth, while indirectly funded projects are where the Commonwealth contributes funding for building work to a "funding recipient", such as a State Government or Local Council, through a funding agreement, grant or other program.

Review of the Scheme

An independent review into the FSC has commenced, initiated by the Commonwealth Government. The proposed timeline for the Review is:

• May-June 2023: consultations with stakeholders commenced;
• June 2023: public discussion paper released (which we discuss below);
• 31 July 2023: due date for responses to public discussion;
• July-August 2023: further public consultation process;
• September 2023: consultation summary released to the public identifying key themes and issues raised;
• September-December 2023: opportunity to respond to consultation summary; and
• December 2023: final report with recommendations to Government finalised.

The objective of the Review is to evaluate the FSC's effectiveness and the merits of implementing a similar approach for other areas of Government procurement (ie. expand the operation of the Scheme outside of the construction sector).

The Review will consider the impact of the FSC and the Scheme on building industry safety by adopting a tripartite approach to stakeholder consultations. This includes consultation through an advisory panel made up of stakeholders from key industry associations, unions and other Government agencies, as well as consultation with the National Construction Industry Forum (NCIF) which has been established as of 1 July 2023.

Ten key issues in the discussion paper

A discussion paper released on 30 June 2023 highlights key issues identified from the first round of consultation. This paper poses 38 questions in relation to the FSC and the Scheme, which are to be considered by stakeholders and addressed (as relevant) in the next round of public consultation.

Key issues identified in the discussion paper, which the Review will examine, include:

1. Improving WHS practices: the Scheme data suggests WHS outcomes have improved in accredited entities, and while this shows a correlation exists, it does not prove that the Scheme has caused such improvements. Therefore, the FSC is seeking evidence to demonstrate an improvement in the building and construction industry as a result of the Scheme.
2. Appropriateness of FSC functions: the FSC's functions remain relatively unchanged since it commenced operations in 2005. The Review seeks to address whether these functions are still appropriate given the significant changes that have occurred in the WHS landscape since its establishment.
3. FSC powers and compliance: the appropriateness of the FSC's powers and its capacity to monitor funding entities' / funding recipient's compliance with the Scheme.
4. Enhanced monitoring of indirectly funded projects: the limited ability of the FSC to monitor whether indirectly funded projects are meeting the Scheme requirements.
5. Scheme requirements: whether the Scheme requirements, including audit criteria and financial thresholds, are fit for purpose and relevant to the current state of the building and construction industry.
6. Reporting: how reporting can be improved and made more consistent, including by increased collaboration and information sharing between agencies.
7. Current and Recently Acknowledged Hazards: whether the auditing guidelines developed to support accredited entities in gaining accreditation remain relevant to the construction sector.
8. Costs Recovery: whether it is reasonable for the FSC to charge entities seeking Scheme accreditation and how any charge can be implemented fairly.
9. Government Priorities: whether changes to the FSC's functions or Scheme requirements are necessary to support implementing various Commonwealth policies, the work of the NCIF and the regulatory stewardship approach to regulation.
10. Expansion: whether the Scheme should be expanded outside of the construction sector and if so, the practicality of doing so.

We anticipate further updates and information following the latest round of public consultation.