Building & Construction Award: Payroll Compliance Made Simple

If you run a business in the building and construction industry, you already know how challenging it can be to juggle projects, cash flow, and staffing. One area that often causes headaches is payroll compliance under the Building and Construction General On-site Award 2020 (commonly called the Building & Construction Award).

Getting payroll right isn’t just about paying staff—it’s about ensuring your business stays compliant with Fair Work requirements, avoids costly mistakes, and keeps employees satisfied

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Who Does the Building & Construction Award Cover?

The Building & Construction Award applies to most employees working directly on-site, including:

• Carpenters, bricklayers, plumbers, electricians, and other tradespeople

• Apprentices and trainees

• Labourers and construction workers

• Plant operators

• Leading hands and forepersons

If your team is on-site, the award likely applies.

Key Payroll Obligations for Construction Businesses

1. Minimum Pay Rates

Employees must be paid at least the minimum rate outlined in the award. Rates differ depending on classification, qualifications, and experience.

2. Allowances

The Building & Construction Award includes specific allowances, such as:

• Tool allowance (when staff supply their own tools)

• Travel allowance (for moving between job sites)

• Meal allowance (for overtime without notice)

• Industry allowance (to recognise the nature of construction work)

  
  

3. Penalty Rates & Overtime

Work performed outside standard hours, on weekends, or public holidays attracts penalty rates. Accurate payroll calculations are essential to avoid underpayment.

4. Apprentices and Trainees

The award sets out detailed requirements for apprentice pay rates, training entitlements, and progression. Mistakes here are common—and expensive.

5. Leave & Rostered Days Off (RDOs)

Employees under the award are entitled to annual leave, personal leave, and RDOs in addition to the National Employment Standards (NES).

Why Compliance Matters

Failing to meet your obligations under the Building & Construction Award can lead to:

• Back-pay claims from employees

• Heavy fines from the Fair Work Ombudsman

• Damage to your business reputation

On the other hand, getting it right means:

• Happy and loyal employees

• Fewer disputes and payroll issues

• More time to focus on growing your construction business

How K.I.S. Bookkeeping & Business Solutions Can Help

We specialise in supporting builders, contractors, and trades businesses with award compliance and bookkeeping. Our services include:

• Setting up payroll systems to align with the Building & Construction Award

• Checking pay rates, allowances, and penalty rates for accuracy

• Managing superannuation, leave entitlements, and BAS reporting

• Streamlining cash flow and improving compliance

With our expertise, you’ll never have to stress about payroll or compliance again.

✅ Ready to simplify your payroll and stay compliant with the Building & Construction Award?

Contact K.I.S. Bookkeeping & Business Solutions today and let us handle the compliance while you focus on building your business.

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