Building surveyor fined for unpaid building permit levies
(Victoria Readership) By Blaise Alexander, Solicitor, Property, Construction and Planning Law, Lovegrove Smith & Cotton
January 2015
Building surveyor fined for unpaid building permit levies
Building surveyor Jeffrey Uren has been fined more than $23,000 after the Victorian Building Authority (VBA) found that he failed to submit details of the building permits he had issued over a two year period, and did not pass on the associated building permit levies to the VBA.
The case in point offers a stark reminder that even in situations where a practitioner takes remedial action, for example financial restitution, after realising what could simply have been an oversight or error in accounting, the VBA may still pursue an inquiry and issue a heavy penalty for conduct perceived as a prima facie failure to meet professional obligations.
What is the building permit levy?
The Building Act 1993 imposes a building permit levy. The levy amount is based on the cost of the building work and must be paid by the applicant before a permit can be issued.
Building surveyors have several administrative responsibilities associated with verifying the cost of building work and collecting the building permit levy. They must keep a record of amounts received for the building permit levy and amounts forwarded to the VBA.
Building permit levies fund the building control system in Victoria. The Victorian Building Authority’s (VBA) building permit levy audit program has identified more than $334,000 in unpaid building permit levies in 2013-2014.
The VBA regularly performs audits to ensure building surveyors comply with their obligations to report and submit building permit levies. These obligations on building surveyors are enshrined within the Building Act 1993.
Building Surveyor responsibilities
Anyone applying for a building permit for works costing more than $10,000 must pay a levy before the permit can be issued. This levy is collected by the building surveyor, who then forwards it to the VBA each month.
Under the Building Act 1993, each month building surveyors must provide the VBA with a report of the building permits they have issued, and forward the levy payments for the building permits that have been approved and issued.
After the VBA investigated the matter and in Mr Uren’s case launched legal action to recover the money, Mr Uren settled the outstanding amount. The VBA also referred the matter to the Building Practitioners Board (BPB) for an inquiry into Mr Uren’s conduct after levy audits revealed ongoing issues with unreported building permits and unpaid building permit levies.
At a hearing in August 2014 before the BPB, Mr Uren was found guilty of 17 charges, including:
- issuing a building permit when he could not be satisfied that the work would comply with the Building Act 1993 and Building Regulations 2006;
- failing to pass on to the VBA, within the appropriate timeframe, levies from building permits he had issued;
- failing to provide council and the VBA, within the appropriate timeframe, with the details of building permits and occupancy permits he had issued;
- approving building work that did not comply with regulations relating to overlooking adjoining properties;
- failing to provide the VBA’s performance auditors with required information.
The BPB decision was that Mr Uren was fined $14,436 and ordered to pay $9,276 in costs.
In light of the above it is imperative that practitioners seek expert legal advice at the earliest opportunity when faced with an inquiry or investigation into their professional conduct. However, practitioners must also be aware of their duties under the Building Act and Regulations, and should take legal advice if there are any uncertainties.
For more information about building permit levies and the VBA’s levy audit program, visit the VBA website at www.vba.vic.gov.au
For further information on this decision see the VBA Media Release dated 22 December 2014.
By Blaise Alexander, Solicitor, Lovegrove Smith & Cotton
