Annual Report 2007-08 - Plumbing Industry Commission

Annual report 

2007-08 

Towards carbon neutral living 

Silver 2008 ARA Awards

About the Plumbing Industry Commission 

The Plumbing Industry Commission is a Victorian Government 

statutory authority that promotes safe, healthy and 

sustainable outcomes for all Victorians through an efficient 

and effective plumbing regulatory system. 

The Commission is established under Part 

12A of the Building Act 1993. 

It administers the licensing and registration 

system for plumbing practitioners and 

promotes and enforces plumbing standards 

across Victoria. The Commission is supported 

by the independent Plumbing Industry 

Advisory Council, established under the 

Building Act 1993, which provides advice 

on plumbing regulatory matters to the 

Minister for Planning and the Commission. 

The Commission works proactively to 

promote plumbing practices that protect 

the health and safety of the community 

and the integrity of water supply and 

waste water systems. By monitoring the 

performance of plumbing practitioners, 

the Commission also contributes to the 

protection of water and gas supply, waste 

water, roofing, heating and cooling systems. 

The Commission also works with the 

community, industry professionals and 

educators to promote better plumbing 

standards and sustainable plumbing in 

Victoria and nationally. 

Contents 

Highlights 2007–08 02 

Financial performance summary 03 

Commissioner’s report 06 

Plumbing Industry Advisory 

Council – Chair’s report 08 

Organisational structure 09 

Executive Leadership Team 10

Mission 

Regulating for a safe, liveable and 

sustainable built environment. 

Vision 

An innovative, sustainable and responsive 

plumbing industry, fostered through 

collaborative partnerships between 

Government and industry stakeholders. 

Role 

The Commission continues to regulate the 

Victorian plumbing industry to enhance the 

amenity, safety, health and sustainability of 

the built environment. 

Values 

The Commission is proud of having an 

organisational culture that is relevant, 

responsive and delivers results. The culture 

is driven by the values and the way 

employees behave. Our values are: 

• future focus 

• achieving together 

• inspiring excellence 

• respecting individuals 

• ensuring trust. 

Strategy 

The Commission’s 2007–08 Business Plan 

reflected the overarching goals outlined in 

the organisation’s five year Corporate Plan 

(2007–12). This plan focuses on economic, 

social and environmental outcomes while 

emphasising the Commission’s regulatory 

responsibility. Over the five-year period, the 

Commission aims to achieve: 

Regulatory excellence – by delivering 

effective and responsible industry 

governance 

Industry responsibility – supporting 

Government and stakeholders to transform 

the industry 

Environmental best practice – ensuring a 

sustainable built environment 

Community accountability – ensuring safe 

building services for the community. 

The Commission’s five-year Corporate 

Plan is available on the Plumbing Industry 

Commission website: www.pic.vic.gov.au 

Stakeholders 

The Commission acts on behalf of the 

Minister for Planning to regulate the 

plumbing industry for the Victorian 

community. The Commission services clients 

and stakeholders, including Registered and 

Licensed Plumbing Practitioners, industry 

professionals, peak industry bodies, 

manufacturers, all levels of government, 

and educators within the industry and the 

wider Victorian community. 

The Commission actively engaged with 

stakeholders throughout 2007–08 and will 

continue to build on these relationships 

in 2008–09. This included community 

consultation, advice, information seminars 

and established committee structures. 

Our people 

The Commission employs 50 people in its 

Camberwell head office. The Commission 

aims to achieve a diverse, ethical and 

effective workforce and is committed to 

creating a safe, positive workplace that 

promotes life balance. 

Regulatory excellence 12 

Industry responsibility 18 

Environmental best practice 28 

Community accountability 34 

Our people 40 

Corporate governance 46 

Financial Report 2007–08 52 

Appendix 1 77 

Glossary of terms 78 

Disclosure index 79 

Alphabetical index 80 

Five-year statistical summary 81 

State of Victoria, Plumbing Industry Commission 

2008. This publication is copyright. No part 

may be reproduced by any process except in 

accordance with the provisions of the Copyright 

Act 1968. 

PLUMBING INDUSTRY COMMISSION 2007–08 ANNUAL REPORT 01

Highlights 2007–08 

• Worked with the Department 

of Planning and Community 

Development to conduct a major 

review of the current Plumbing 

Regulations 1998, which are due to 

sunset in November 2008 

• Worked with key stakeholders to 

have plumbing related amendments 

included in the proposed Building 

(Amendment) Bill 2008 

• Increased the number of accredited 

practitioners: Registered practitioners 

by 4.2 per cent and licensed 

practitioners by 4.1 per cent 

• Oversaw an increase of Compliance 

Certificates lodged by 7.8 per cent 

• Assisted in the development of the 

Plumbing Industry Climate Action 

Centre, a plumbing sustainability 

centre of excellence at Brunswick 

in partnership with the Plumbing 

Trades Employees Union, Master 

Plumbers and Mechanical Services 

Association of Australia, Air 

Conditioning and Mechanical 

Contractors Association of Victoria, 

National Fire Industry Association, 

the Department of Innovation, 

Industry and Regional Development 

and the Building Commission 

• Delivered The path to a greener 

plumbing industry report with eight 

opportunities for saving water and 

energy, as part of the PlumbSmarter 

project 

• Partnered with City West Water, 

South East Water, Yarra Valley 

Water, the Department of 

Sustainability and Environment 

and the Building Commission on a 

12-month project to reduce water 

use in the routine maintenance and 

testing of fire sprinklers 

• Jointly launched with the Building 

Commission, the Make Your Home 

Green online portal – a one-stop 

shop for information on how 

consumers can make their homes 

more sustainable, receiving an 

impressive 28,850 distinct visits 

between 3 May and 30 June 2008 

• Extended the Commission’s 

audit process to capture 5 Star 

sustainability data and ensure 

environmental water efficiencies 

and energy compliance are being 

achieved 

• Launched a monthly e-bulletin to 

increase practitioner awareness and 

understanding of the Commission’s 

functions 

• Continued to deliver the new 

look InPipe magazine to 21,848 

subscribers and achieving 93 per cent 

reader satisfaction 

• Announced the move to the Goods 

Shed North in late 2009, targeted as 

a 5 Star Green Star refurbishment 

of a heritage-listed building 

• Launched the five-year Corporate 

Plan with greater organisational 

focus on staff involvement in 

strategy teams. 

02

Financial performance summary 

The Commission derives its income from registration 

and licensing fees, Compliance Certificate sales and 

other miscellaneous fees and services. 

In 2007–08, total income increased from 

$10.1 million to $11.2 million, up 11 per cent 

compared with 2006–07. This was primarily 

due to increased revenue from Compliance 

Certificate sales and additional revenue 

from collaborative sustainability projects. 

Total expenses increased from $10.6 million 

to $11.1 million, an increase of four per 

cent compared with 2006–07. This was 

due to higher salaries and associated costs 

under the Enterprise Bargaining Agreement, 

higher general administration costs and 

an increase in plumbing inspections and 

audits as a result of the higher number of 

Compliance Certificates lodged in 2007–08. 

The Commission’s net result for the period 

was $0.1 million. This was consistent 

with the net effect of the movements in 

total revenue and operating expenses. 

Asset holdings slightly increased to $11.8 

million, which included a $1.0 million land 

revaluation as at 30 June 2008. 

2008–09 outlook 

The Commission’s 2008–09 budget and 

three-year financial plan has forecast 

continued strength in building activity 

across all sectors, with forecasts of 

$20 billion in each of the three financial 

years. It is expected that this forecast in 

building activity will favourably impact 

the plumbing sector and the operations 

of the Commission. 

Financial performance summary 2006–07 

$ million 

2007–08 

$ million 

Total income 10.1 $11.2 

Total expenses 10.6 11.1 

Net result for the period (0.5) 0.1 

Total assets 10.7 11.8 

Total liabilities 4.6 4.6 

accountable Officer’s declaration 

In accordance with the Financial Management Act 1994, I am pleased to present the 

Plumbing Industry Commission’s Annual Report for the year ending 30 June 2008. 

Yours sincerely 

Tony Arnel LFRAIA 

Plumbing Industry Commissioner 


Performance against targets 

Objectives Performance measures 2007–08 target 

Regulatory excellence (See page 12) 

Delivering effective and responsible 

industry governance 

Consumer confidence in the plumbing 

regulatory framework 

Practitioner and consumer satisfaction with 

Commission’s services 

Management of plumbing regulatory 

framework 

70% reader satisfaction with technical 

information in InPipe magazine 

85% satisfaction with publications and 

website 

Review Plumbing Regulations 1998, Building 


Industry responsibility (See page 18) 

Supporting Government and stakeholders 

to transform the industry 

Industry attractiveness among Registered or 

Licensed Plumbing Practitioners 

20,700 practitioners holding plumbing 

licence and/or registration 

Volume of Compliance Certificates lodged 325,000 

Number of Registered or Licensed 

Practitioners 

Number of Licensed Practitioners holding 

one class 

Registered or Licensed Plumbing 

Practitioners participating in CPD 

16,500 holding registration in at least one 

class 

10,500 

Develop Continuing Professional 

Development (CPD) strategy 

Environmental best practice (See page 28) 

Ensuring a sustainable built environment 

Community accountability (See page 34) 

Ensuring safe building services for the 

community 

Our people (See page 40) 

Matching employee culture with corporate 

values 

Number of buildings meeting the minimum 

energy and water efficiency standards 

Practitioner and consumer knowledge 

of environmentally sustainable designs, 

materials and processes 

Number of flagship projects that exceed 

the minimum regulatory energy and water 

efficiency standards 

Energy and water efficiency requirements 

Consumer satisfaction with plumbing 

services 

Audited plumbing work compliant with 

the Plumbing Regulations 

Number of disputes as a percentage of 

Compliance Certificates lodged 

Volume of plumbing information accessed 

by consumers 

Timeliness of investigations and the 

domestic building dispute resolution process 

Better informed Commission employees 

Continue implementation of 5 Star standard 

for new dwellings 

50,000 distinct visits per year to Make Your 

Home Green online portal 

Establish PlumbSmarter project team and 

increase project awareness 

Extend audit process to capture 5 Star 

sustainability data 

70% of complaints resolved within 60 days 

or less 

5% of Compliance Certificates lodged 

audited 

1% 

Increase visits to Commission website 

Written complaints assessed/acknowledged 

within 5 days of receipt of the complaint 

Launch joint PIC and Building Commission 

intranet 

04

2007–08 actual Achieved 2008–09 target 

93% reader satisfaction with technical information in InPipe 

magazine 

Yes 

95% continued satisfaction levels 

75% satisfaction with publications and website No New suite of publications produced 

Worked with Department of Planning and Community 

Development (DPCD) to review Plumbing Regulations 1998 

and Building (Amendment)Bill 2008 

Yes 

Implement Plumbing Regulations 2008 through training and 

communication 

21,378 practitioners holding plumbing licence and/or 

registration 

Yes 

21,500 practitioners holding plumbing licence and/or 

registration 

340,293 Yes 341,067 

17,095 holding registration in at least one class Yes 17,200 holding registration in at least one class 

10,866 Yes 11,100 

Drafted CPD strategy Yes Implement CPD strategy 

47,000 new buildings estimated to meet minimum energy 

and water efficiency standards 

Jointly launched Make Your Home Green online portal, 

receiving 28,850 distinct visits: May–June 08 

Yes 

Yes 

Collaborate with Government to further develop 

5 Star standard 

173,000 distinct visits per year 

Completed The path to a greener plumbing industry report Yes Initiate 8 projects 

Performed 1,312 recycled water audits Yes Perform 1,350 recycled water audits 

71% of complaints resolved within 60 days or less Yes 70% of complaints resolved within 60 days or less 

Performed 17,441 audits (5.1%) Yes 5% of Compliance Certificates lodged audited 

1% Yes 1% 

184,195 visits to Commission website Yes 190,000 visits to Commission website 

90% of complaints acknowledged within 5 days of receipt 

of the complaint 

Yes 

90% of complaints acknowledged within 5 days of receipt 

of the complaint 

Delivered 1 December 2007 with 80% of employees 

viewing daily 

Yes 

Implement Howzat for an idea! program 


Commissioner’s Report 

2007–08 has shaped up as a very 

important one as the move towards 

increased environmental sustainability 

gained momentum. One year ago, it was a 

different story. Many ideas and plans were 

on paper, but now real achievements and 

developments can be reported. 

The first of eight water saving initiatives 

identified through the PlumbSmarter 

project has begun. This project’s centerpiece 

is the fire sprinkler water conservation 

project aimed at saving 450 million litres of 

water a year by changing procedures and 

technologies for testing fire sprinklers in 

commercial buildings. This initiative is part 

of a report known as The path to a greener 

plumbing industry. 

The Commission, along with five other 

key stakeholders, put its strong support 

behind the Plumbing Industry Climate 

Action Centre. The new training facility will 

provide plumbing practitioners with best 

practice green technological solutions. The 

Centre is a pioneer facility offering separate 

training schemes to plumbing practitioners 

brought together under the one roof 

and helping them to upskill. It’s hoped 

that the facility will also have an impact 

on increasing the number of plumbing 

practitioners in this field. 

A 4.1 per cent increase in Licensed and 

Registered Plumbing Practitioner accreditations 

achieved the largest accredited 

practitioner number since 2000. Attracting 

newcomers to a plumbing career is now 

more critical than ever, given plumbing 

practitioners are in a unique position to 

educate and influence consumers and 

businesses to opt for environmentally 

sustainable plumbing options. 

There are obvious business benefits of 

running a green business in a growing niche 

market and the desire for information on 

going green was reflected in the 21,848 

subscribers to InPipe magazine. 

Rainwater tanks continued as the mainstay 

for water saving measures and we saw 

a trend towards greywater treatment 

systems. The Commission worked to further 

improve the efficiency and sustainable 

effectiveness of the plumbing regulatory 

system. It assisted the Department of 

Planning and Community Development and 

key stakeholders to conduct a major review 

of the current Plumbing Regulations 1998. 

It also ensured plumbing related 

amendments were included in the 

Building (Amendment) Bill 2008, which 

subsequently passed through both houses 

of the Parliament of Victoria. 

Since ‘grey is the new black’, we know 

trends can influence change but so can 

financial savings. These factors have all 

contributed to the increased demand for 

sustainable plumbing solutions in the 

market place. An increased number of new 

homes installing solar panels, water tanks 

and recycled water installations impelled 

the Commission to extend the audit 

process to capture 5 Star sustainability 

data. A total of 1,312 5 Star audits ensured 

environmental water efficiencies and 

energy compliance are being achieved. 

Maintaining our environment in the face of 

continued plumbing activity will continue 

to be a challenge as Victoria experienced an 

increase of 7.8 per cent more Compliance 

Certificates lodged. 

06

In line with the Government’s sustainability 

agenda the Commission, along with the 

Building Commission, will relocate to the 

1880s Goods Shed North in the Docklands 

in late 2009. This will provide a flexible 

workplace with a 5 Star Green Star rating 

being targeted. It will be the first of its kind 

for a heritage building in Victoria. 

Outlook for 2008–09 

Plumbing practitioners need to consider the 

important role they can play in educating 

the community about the cost and 

environmental benefits of green plumbing 

practices. If the whole industry does 

this, we can make a big difference to the 

amount of water and energy used. 

I’d like to congratulate the Commission 

staff, who have continued to absorb many 

improvements to the business as part of its 

alignment with the Building Commission. 

We look forward to improving efficiencies 

in the joint move to the Goods Shed North 

in late 2009. 

I would also like to thank the members of 

the Plumbing Industry Advisory Council for 

their continued advice and support. 




Plumbing Industry Advisory Council 

Chair’s Report 

The Plumbing Industry Advisory Council is a senior 

industry advisory group established under Part 12A of the 

Building Act 1993 to provide advice to the Minister for 

Planning and the Plumbing Industry Commission. 

The Council includes 14 members 

representing industry employers and 

employees, vocational education, water, 

energy and gas regulators, the building 

industry, the plumbing union and consumers. 

In 2007–08, the Council undertook the 

following activities: 

• strategic planning workshop to identify 

water and energy saving opportunities 

in the plumbing industry over the next 

five years 

• Ministerial Reference to the Council on 

identification of water and energy saving 

opportunities achievable through the 

plumbing industry has been completed 

• response to the Minister for Skills 

and Workforce Participation on the 

Discussion Paper on Skills Reform – 

‘Securing our Future Economic Prosperity’ 

• response to the Parliament of Australia, 

House of Representatives (Standing 

Committee on Environment and 

Heritage) regarding the Inquiry into the 

Regulation of Plumbing Product Quality 

• submission to the Productivity 

Commission on the Review of Mutual 

Recognition Schemes 

• membership on Skills Victoria’s Plumbing 

Industry Stakeholders Committee dealing 

with a range of plumbing, training and 

education issues 

• strategic direction and input into the 

Commission’s business and corporate 

planning 

• monitored the financial management of 

the Plumbing Industry Commission. 

Doug McClusky 

Chair, Plumbing Industry Advisory Council 

08

Organisational structure 

Minister for Planning 

Justin Madden MLC 

Plumbing Industry 

Commissioner 

Tony Arnel 


Advisory Council 

Doug McClusky 


Commission 

Corporate Services 

Building Commission 

General Manager Operations 



Shayne La Combre 

Corporate Services 


Commission & 


Sarah McCann-Bartlett 

Regulatory Development 


Jeff Norton 

Practitioner Registration, 

Development and 

Compliance Building 


Gil King 

Finance and Business 

Services Plumbing 

Industry Commission & 


Paul Crapper* 

People and Culture 


Commission & 


Muriel Marczynski* 

* Acting General Manager, Corporate Services from 1 July 2007 to 30 June 2008 

The Building Commission aligned with the Plumbing Industry Commission on 1 May 2006 


Executive Leadership Team 

Tony Arnel 

Plumbing Industry Commissioner and 

Building Commissioner 

B Arch, M Urban Planning, LFRAIA, MPIA, 

FAICD 

Responsibilities: 

• Plumbing Industry Commissioner and 

Building Commissioner 

• Reporting to the Minister for Planning 

• Responsibility for administering building 

and plumbing regulations within Victoria. 

Tony Arnel is Victoria’s Plumbing Industry 

Commissioner and Building Commissioner, 

making him the Chief Executive of 

two statutory authorities. His industry 

representations include being a founding 

director and current Chair of the Green 

Building Council of Australia and more 

recently, elected to the Board of the World 

Green Building Council. Over the past 

decade, Tony has influenced the national 

sustainability debate, most recently with 

the Building Commission and the Green 

Building Council of Australia, in delivering 

the 5 Star housing energy standards, the 

implementation of new sustainability 

standards into the national building code, 

and the accelerated uptake of the Green 

Star rating tools for buildings. 

Paul Crapper* 

Chief Financial Officer and Director – 

Business Services, Corporate Services, 

Plumbing Industry Commission and 


BBus (Acc), FCPA, FAICD 


• Financial management 

• Corporate and business planning 

• Risk management and quality assurance 

• Industry statistics and measurement 

• Facilities management and purchasing. 

During his 11 years with the Building 

Commission and since his appointment 

as a Director in September 2001, Paul 

has ensured the Building Commission’s, 

and more recently the Plumbing Industry 

Commission’s, high levels of corporate 

governance and financial accountability 

and transparency. Paul is a Fellow of the 

Australian Institute of Company Directors 

and a Fellow of CPA Australia. He is a Chief 

Financial Officer with experience across 

both the private and public sectors in 

finance and accounting, including strategic 

management of resources and ensuring 

financial control and compliance. Paul is 

a member of RMIT’s School of Property, 

Construction and Project Management 

Advisory Committee and is a member of 

the Audit Committee of the Green Building 

Council of Australia. 

*Acting General Manager, Corporate Services from 

1 July 2007 to 30 June 2008 

Gil King 

Director – Practitioner Registration, 

Development and Compliance, Building 


BA (Police Studies), Grad Dip (Crim), 

Dip (Bld Surv) 


• Support to the Building Practitioners 

Board and the Building Appeals Board 

• Practitioner assessment and registration 

• Practitioner professional development 

• Practitioner compliance, complaints, 

prosecutions and inquiries. 

During his 11 years with the Building 

Commission, Gil has played a key role in the 

areas of practitioner services, compliance 

and industry professional development. 

Gil is a qualified industry trainer and has 

presented on behalf of the Commission 

both nationally and internationally. Gil is 

also a graduate of the Australian Institute 

of Company Directors. 


General Manager, Operations 

Plumbing Industry Commission 

MPPM, BBus (Man), LLB, Grad Dip 

(Legal Practice), Adv Cert (Man), 

Cert of Proficiency (Plumbing) 


• Practitioner registration 

• Compliance 

• Investigations 

• Regulatory development. 

Shayne La Combre was appointed in 

November 2005 to manage the Plumbing 

Industry Commission’s core functions. A 

second-generation plumber, Shayne has 

extensive industry experience, having 

worked for the Gas and Fuel Corporation for 

19 years as well as several private energy 

corporations. His career experience includes 

roles with Standards Australia and Energy 

Safe Victoria. 

10


Manager – People and Culture 

Corporate Services, Building Commission 

and Plumbing Industry Commission 

BA (Bus Management), Grad Dip (Industrial 

Training), MA (Education, Leadership & Man) 


• Organisational development 

• Workforce strategy 

• Performance management 

• Employee and industrial relations 

• Learning and development. 

Muriel was appointed in October 2006 to 

manage both the strategic and operational 

‘people and culture’ agenda. She provides 

high-level advice and support to the 

Commission’s Executive Leadership Team, 

while partnering with core business 

managers to drive corporate objectives and 

organisational culture. Muriel has extensive 

experience in building organisational 

capability with over 16 years experience in 

private and public sector organisations. 

*Acting General Manager, Corporate Services from 



General Manager – Corporate Services 

Building Commission and Plumbing 

Industry Commission 

BA, BCom, Grad Dip (Marketing), MBA, FAICD 


• Human resource management 

• Corporate financial and business services 

• Strategic marketing and communications 

• Information technology and records 

management 

• Stakeholder liaison. 

Sarah plays a critical role in the strategic 

direction of the Commissions and has 

been responsible for special projects and 

led the alignment between the Building 

Commission and the Plumbing Industry 

Commission. Prior to joining the Building 

Commission, Sarah managed the Woolmark 

Company’s North American operations. 

Sarah is a Fellow of the Australian Institute 

of Company Directors. 

Jeff Norton 

Director – Regulatory Development 


BTRP (Melb), Grad Cert Management, FAICD 


• Advice on building legislation and 

regulatory development 

• Corporate legal services 

• Support to the Building Advisory Council 

and Building Regulations Advisory 

Committee 

• Technical and research services 

• Sustainability and developing industry 

initiatives. 

During his eight years with the Commission, 

Jeff has played a key role in developing 

the Government response to insurance 

issues following the collapse of HIH and 

implementing energy efficiency reforms 

for building in Victoria. Jeff has a 16-year 

involvement in the Victorian and Australian 

building industry and is a Fellow of the 

Australian Institute of Company Directors. 

Jeff is a Director on NATSPEC – Construction 

Information Systems Ltd. 


Regulatory excellence 

The Commission works to improve the effectiveness of 

the plumbing regulatory framework by being actively 

involved with the review and development of standards.

The Plumbing Industry Commission 

endeavours to deliver effective and 

responsible industry governance by: 

• continuously monitoring the effectiveness of the Victorian 

plumbing system to enhance the amenity, safety, health 

and sustainability of plumbing work 

• building a more innovative, transparent and responsible 

organisation. 

Key achievements 

In 2007–08, the Commission worked 

with the Department of Planning and 

Community Development to ensure 

regulatory excellence by continuing a major 

review of the current Plumbing Regulations 

1998, which are due to sunset in November 

2008. This included consulting with key 

industry stakeholders to ensure that new 

Plumbing Regulations reflect industry, 

community and Government expectations. 

The Commission worked with the 

Department of Planning and Community 

Development and key stakeholders to have 

the plumbing related amendments included 

in the Building (Amendment) Bill 2008. 

The Bill subsequently passed through both 

houses of the Victorian Parliament. 

The Commission also improved the 

effectiveness of the plumbing regulatory 

framework by being actively involved with 

the review or development of standards. In 

particular, it attended the Water Efficiency 

Labelling and Standards Forum to examine 

a proposal to provide a star rating for 

instantaneous water heaters and clothes 

washer/dryers and review the development 

of work underway on three-litre single-flush 

toilet cisterns. 

Another achievement was the Commission’s 

contribution to a consultation paper 

setting out the key steps to achieving the 

transition of the work conducted under 

the auspices of the Australia-New Zealand 

Reciprocity Agreement to the National 

Plumbing Regulators Forum. 

Regulatory Excellence 13

Performance in 2007–08 

Performance measure 2007–08 target 2007–08 actual Achieved 2008–09 target 

Consumer confidence with 

the plumbing regulatory 

framework 

70% reader satisfaction with 

technical information in 

InPipe magazine 

93% reader satisfaction with 

technical information in 


Yes 

95% continued satisfaction 

levels 

Practitioner and consumer 

satisfaction with Plumbing 

Industry Commission 

services 

85% satisfaction rate with 

publications and website 

75% satisfaction rate with 

publications and website 

No 

New suite of publications 

produced 

Management of the 

plumbing regulatory 

framework 

Review Plumbing Regulations 

1998 and Building 


Worked with DPCD to review 

Plumbing Regulations 1998 

and Building (Amendment) 

Bill 2008 

Yes 

Implement Plumbing 

Regulations 2008 through 

training and communication 

initiatives 

Improve effectiveness 

of plumbing regulatory 

framework 

Participated in Water 

Efficiency Labelling and 

Standards (WELS) Forum 

Attended National Plumbing 

Regulators Forum (NPRF) 

meetings 

Yes 

Continue to participate in 

national plumbing regulatory 

forums: NPRF, Licensing 

and Education Advisory 

Committee (LEAC), Technical 

Advisory Committee (TAC) 

and Standards Committees 

14

93 per cent of InPipe readers are satisfied with the 

magazine’s technical content. 

Replacement of sunsetting 

regulations 

The current Plumbing Regulations 1998 

are due to sunset in November 2008 

and the Commission is working with the 


Development to have new regulations in 

place by this date. 

In order to replace sunsetting regulations, 

it is important to demonstrate clearly that 

each restriction imposed by regulation is 

still required. The revised regulations also 

need to reflect industry, community and 

Government expectations. 

The process of producing new regulations 

includes the development of a Regulatory 

Impact Statement, consistent with the 

Victorian Competition and Efficiency 

Commission’s Victorian Guide to Regulation. 

The Department of Planning and Community 

Development and the Commission will 

continue to work with peak industry 

bodies, member organisations and other 

Government departments and agencies, to 

ensure the proposed new regulations are 

understood by the industry prior to coming 

into effect by November 2008. 

Amendments to legislation to 

improve industry performance 

This year, the Commission worked with the 


Development on a number of amendments 

to the Building (Amendment) Bill 2008, 

which subsequently passed through both 

houses of the Victorian Parliament. 

The amendments are designed to: 

• enhance consumer protection 

• update, clarify and simplify aspects of the 

Act to make them easier to understand 

• improve the efficiency and operation of 

the regulatory scheme 

• incorporate stakeholder feedback about 

ways to improve the Act. 

The changes relate to: 

Compliance Certificates: there are several 

clarifications relating to the issuing of 

Compliance Certificates. Presently there 

are a number of ambiguities relating to 

Compliance Certificates which have the 

potential to cause problems for consumers 

– particularly when more than one 

practitioner is engaged to complete a 

job. The amendments will provide clearer 

direction about what practitioners are 

responsible for and at what stage of a job a 

Compliance Certificate should be issued. 

Fines: Penalties for failing to comply with 

the Act will rise to 100 penalty units under 

the amendments. This would see the 

maximum monetary penalty increased 

from $1,000 to $11,012 – an amount 

more appropriate to the potential impact 

of plumbing breaches on individuals and 

to public health and safety risks. The 

maximum 100 units would only be used 

in cases of serious breaches of the Act as 

a deterrent to practitioners and to assist 

with compensation to affected consumers. 

Supervision: The Act stipulates that 

plumbing work requiring a Compliance 

Certificate that is not performed by a 

Licensed Plumbing Practitioner may be 

performed by a Registered Plumbing 

Practitioner working ‘under the supervision 

of’ a licensed plumber. The amendment 

clarifies the definition of ‘under supervision’ 

and ensures consistency in the use of the 

term throughout the Act. This will ensure 

a consistent and appropriate level of 

guidance and supervision for training and 

work performed under supervision. 


The Commission provides technical information to 

plumbing practitioners to help them comply with 

regulatory requirements. 

Ensuring consistency in 

plumbing standards 

The National Plumbing Regulators Forum 

(NPRF) was established in 2002 to facilitate 

greater national consistency in plumbing 

standards across all Australian States 

and Territories. The Forum provides an 

opportunity for Government regulators to 

exchange views on policy and technology 

developments across the plumbing industry. 

In 2004, the NPRF developed the Plumbing 

Code of Australia 2004 on behalf of 

the Commonwealth Government and 

each State and Territory Government. 

The Code is a uniform set of technical 

provisions for plumbing work and allows 

for State variations to provide additional 

requirements or cater for specific 

community expectations. 

The Plumbing Regulations 2008 will call 

up the Plumbing Code of Australia 2004, 

providing a national and consistent 

approach to the application of plumbing 

standards in the Victorian Regulations. 

Involvement in the review and 

development of standards 

In 2007–08, the Commission participated 

in the Water Efficiency Labelling and 

Standards (WELS) Forum to review WELS 

progress. A future proposal to provide a 

star rating for instantaneous water heaters 

and clothes washers/dryers and three-litre 

single-flush toilet cisterns was outlined. 

The Commission also contributed to a 

review of Australian Standard AS/NZS 

3500 Part 4 – heated water, concerning 

a proposal to limit the amount of cold 

water draw-off from non-circulating 

Heated Water systems. It participated in 

a review held by Australian Scientific on 

the reduction of flows on plumbing and 

drainage systems. 

16

Delivering information to 

industry 

The Commission provides technical 

information to plumbing practitioners 

to help them comply with regulatory 

requirements. Technical assistance includes 

technical solutions, modifications to 

plumbing regulations and information on 

standards and accredited plumbing products. 

The Commission developed five technical 

solutions in 2007–08. Technical sheets 

included the ‘Recycled water or greywater’ 

and ‘Natural Gas Type A installation’. 

Technical sheets are issued in InPipe 

magazine and are available on the 

Commission’s website. 


In 2008–09, the Commission plans to 

achieve regulatory excellence by: 

• implementing the proposed Plumbing 

Regulations 2008, which are due to 

sunset in November 2008, through 

training, communications and systems 

enhancement 

• continuing to collaborate with the 

Department of Sustainability and 

Environment, Department of Planning 

and Community Development, 

Sustainability Victoria, Environment 

Protection Authority and Melbourne 

Water on the development of the next 

stage of the 5 Star standard. 

Industry gives Commission top 

marks for communication 

The majority of Registered and Licensed Plumbing Practitioners say 

the Commission is doing a great job on communicating regulatory 

changes, according to a survey conducted in December 2007. 

At least 75 per cent of respondents rated the Commission’s 

publications, including its website, as above average or of high 

quality. Meanwhile, less than two per cent of respondents rated 

publications as being of low quality. 

InPipe magazine was the top performer, with almost 87 per cent 

of readers responding positively to the publication. The majority of 

readers were also happy with the balance between human interest 

stories and technical information in the magazine, with 93 per cent 

saying they were satisfied with the distribution of content. 

The Commission’s website was a close second, with 78 per cent 

of users rating it as high quality or above average. None of the 

respondents rated the website as being of low quality, indicating 

that the site is consistently fulfilling the needs of users. 

Despite the strong performance of the website, most respondents 

said they would rather receive information from the Commission 

through e-bulletins (33 per cent) or InPipe magazine (29 per cent), 

rather than through the website (seven per cent). 

When rating the Commission’s overall service delivery, respondents 

were also very positive. More than 77 per cent said the Commission 

offered above average or high-quality customer service. Around 

75 per cent also rated the Commission’s performance at keeping 

up-to-date with regulatory change as above average or high. 

The positive survey results highlighted the importance of the 

Commission’s e-bulletin and InPipe magazine as the preferred 

means of communication. The results will be used to direct the 

Commission’s communications strategy and to further improve 

communications to practitioners in the coming year. To subscribe 

to InPipe or the Commission’s e-bulletin, send an email to 

publicrelations@pic.vic.gov.au 


Industry responsibility 

The Commission’s commitment to industry 

development is reflected in the record number of 

accredited practitioners.

The Plumbing Industry Commission is 

committed to supporting Government and 

stakeholders to transform the industry and 

create industry responsibility by: 

• partnering with industry stakeholders to encourage 

investment, innovation and development to aid an 

efficient and competitive plumbing industry 

• promoting and encouraging the attraction and retention 

of practitioners in the Victorian plumbing industry 

• strengthening plumbing practitioner skills, capabilities 

and standards. 


In 2007–08, the Commission’s commitment 

to industry development was reflected in the 

continued high levels of plumbing activity 

in Victoria – indicated by a total of 340,293 

Compliance Certificates lodged, an increase 

of 7.8 per cent compared to 2006–07. 

The strength of the industry was also 

demonstrated by the largest increase in the 

number of accredited practitioners since 

2000. This included a 4.2 per cent increase 

in registered practitioners, a 4.1 per cent 

increase in licensed practitioners resulting 

in 4.1 per cent increase in total individuals 

holding any accreditation. 

The Commission commenced a project 

that will provide online training resources 

through Victorian plumbing TAFEs to 

assist individuals to meet the additional 

competencies that are now required to 

obtain a plumbing licence. 

The Commission also assisted the Plumbing 

Trades Employees Union, Master Plumbers 

and Mechanical Services Association of 

Australia, Air Conditioning and Mechanical 


National Fire Industry Association, 

Department of Innovation, Industry and 

Regional Development and the Building 

Commission to construct the Plumbing 

Industry Climate Action Centre, a worldclass 

plumbing training facility that 

will provide post-apprentice plumbing 

practitioners with education and training in 

plumbing innovation and sustainability. 

INDUSTRY RESPONSIBILITY 19



Industry attractiveness among Registered or Licensed 

Plumbing Practitioners 

20,700 accredited 

practitioners 


practitioners 

Yes 


practitioners 

Volume of Compliance Certificates lodged 325,000 340,293 Yes 341,067 

Number of Registered Plumbing Practitioners 16,500 17,095 Yes 17,200 

Number of Licensed Plumbing Practitioners 10,500 10,866 Yes 11,100 

Registered or Licensed Plumbing Practitioners participating 

in Continuing Professional Development (CPD) 

Develop CPD 

strategy 

Drafted CPD 

strategy 

Yes 

Implement CPD 

strategy 

Total registration and licensing 

Performance measure 2005–06 2006–07 2007–08 % change 

Total number of individuals holding a 

registration in at least one class 


licence in at least one class 


plumbing licence and/or registration 

Qualification Experience Review 

Committee applications 

16,523 16,394 17,095 + 4.2 

10,046 10,430 10,866 + 4.1 

20,486 20,519 21,378 + 4.1 

614 654 709 + 8.4 

Source: Plumbing Industry Commission 

Specialised classes of plumbing 

Total number of registrations 

and licences 

2005–06 2006–07 2007–08 % change 

Plumbing (Type B gasfitting) Lic 331 333 335 + 0.6 

Reg 244 261 277 + 6.1 

Plumbing (residential and 

domestic fire sprinkler systems) 

Plumbing (type A gas 

appliance conversion) 

Lic 109 114 112 – 1.7 

Reg 335 355 375 + 5.6 

Lic 403 454 477 + 5.0 

Reg 0 0 0 0 

Plumbing (backflow prevention) Lic 731 790 812 + 2.7 

Reg 0 0 0 0 


20

Registration and licensing of 

plumbing practitioners 

Under Part 12A of the Building Act 1993, 

the Commission administers the registration 

and licensing of plumbing practitioners in 

Victoria. The Commission maintains a public 

register of all practitioners, administering 

reciprocal recognition agreements for 

plumbing accreditation with interstate 

and international regulatory organisations, 

and providing and delivering accreditation 

assessments. 

Under the Act, plumbing practitioners 

must be registered or licensed with 

the Commission. All licenses require a 

prescribed level of insurance and are 

usually granted for 12 months. 

Licensed practitioners can: 

• carry out work in a particular class of 

plumbing 

• supervise other Registered or Licensed 

Plumbing Practitioners, as well as 

plumbing apprentices, to carry out that 

work 

• sign, issue and lodge Compliance 

Certificates for that class of work. 

Registrations are usually granted for three 

years and allow a plumbing practitioner 

to carry out work in a particular class 

of plumbing. In most cases this work is 

undertaken with the supervision of a person 

licensed in that class. 

Provisional registration may be granted 

for 12 months to allow a practitioner to 

complete further assessment in order to 

progress to full registration. 

The Commission accredits individuals only 

(not companies or other corporate entities) 

according to class of plumbing, including 

restricted and specialised classes. 

In 2007–08, the industry experienced 

its largest ever increase in the number 

of accredited practitioners since 2000. 

This included a 4.2 per cent increase in 

registered practitioners, a 4.1 per cent 

increase in licensed practitioners and a 

4.1 per cent increase in total individuals 

holding any accreditation. 

The increase in registrations was a result of 

new practitioners moving into the system, 

including: 

• completing apprentices 

• experienced overseas, interstate and local 

practitioners 

• practitioners who had previously been 

registered, re-applying for registration. 

The increase in licences represents a 

buoyant plumbing labour market and a 

stable and affordable plumbing insurance 

scheme. 

The overall increase in accreditations 

represents the cumulative effect of the 

increase in registrations and licenses. 

Qualifications and Experience Review 

Committee 

In 2007–08, the Qualifications and 

Experience Review Committee (QERC) 

conducted an interview-based assessment 

process, supported by practical assessment, 

to determine non-apprentice applications. 

This assessment process provides a more 

accountable, flexible and consistent 

accreditation review. The QERC Assessment 

Committee conducted 370 personal 

interviews with applicants during this 

period – an increase of 64 per cent on the 

previous year. 

The total number of applications under 

the QERC increased by 5.5 per cent to 709 

in total. Of these, 557 applications were 

approved to attempt either a registration 

assessment or to undertake a course and 

assessment to demonstrate registration 

competency. 


Restricted classes of plumbing 


and licences 

Plumbing (gasfitting) Type A 

appliances 

Plumbing (gasfitting) caravans, 

recreational homes and mobile 

homes 

Plumbing (roofing [stormwater]) 

Class 10a buildings 

Plumbing (water supply) fire 

hydrants and hose reels 

Plumbing (water supply) urban 

irrigation 

Plumbing (water supply) 

domestic hot water services 

Plumbing (mechanical services) 

solid fuel heaters 


duct fixing 


refrigeration mechanic 


split systems 


Lic 116 123 137 + 11.3 

Reg 114 108 114 + 5.5 

Lic 22 18 17 – 5.5 

Reg 9 5 5 0 

Lic 121 126 143 + 13.4 

Reg 93 95 94 – 1.0 

Lic 30 33 34 + 3.0 

Reg 252 273 283 + 3.6 

Lic 37 40 40 0 

Reg 51 46 39 – 15.2 

Lic 4 4 5 + 25.0 

Reg 3 2 2 0 

Lic 449 559 633 + 13.2 

Reg 20 30 32 + 6.6 

Lic 5,795 5,725 5,650 – 1.3 

Reg 5,586 5,085 5,093 + 0.1 

Lic 725 795 838 + 5.4 

Reg 547 563 591 + 4.9 

Lic 465 633 809 + 27.8 

Reg 126 159 200 + 25.7 


Main classes of plumbing 


and licences 


Plumbing (gasfitting) work Lic 6,689 6,865 7,142 + 4.0 

Reg 9,094 8,877 9,215 + 3.8 


work 

Plumbing (roofing stormwater) 

work 

Lic 2,754 2,767 2,805 + 1.3 

Reg 13,037 12,935 13,486 + 4.2 

Lic 7,290 7,423 7,573 + 2.0 

Reg 9,326 9,069 9,530 + 5.0 

Plumbing (sanitary) work Lic 7,462 7,646 7,882 + 3.0 

Reg 8,600 8,329 8,698 + 4.4 

Plumbing (water supply) work Lic 7,990 8,208 8,484 + 3.3 

Reg 8,296 7,997 8,318 + 4.0 

Plumbing (draining) work Lic 7,877 8,054 8,284 + 2.8 

Reg 8,443 8,191 8,549 + 4.3 


22

Compliance Certificates lodged by work classes 

Class of work Lodgements % of total 

lodgements 

Roofing 92,923 12.6 

Sanitary 65,564 8.9 

Septic tank 4,968 0.7 

Drainage 48,744 6.6 

Storm water 46,617 6.3 

Cold water 128,762 17.4 

Hot water 102,210 13.8 

Mechanical services 89,886 12.2 

Backflow 389 0.05 

Fire 149 0.02 

Recycled 4,312 0.6 

NG type A 127,206 17.2 

LPG type A 27,143 3.7 

Gas, other 155 0.02 


Compliance Certificates 

by work classes 

12.6% Roofing 

8.9% Sanitary 

0.7% Septic tank 

6.6% Drainage 

6.3% Storm water 

17.4% Cold water 

13.8% Hot water 

12.2% Mechanical services 

.13% Grey or recycled water 

17.2% Gassfitting NG Type A 

3.7% Gasfitting LPG Type A 


Compliance Certificates 


Licensed Plumbing Practitioners in Victoria 

are required to self-certify their plumbing 

work. Self-certification means that a 

licensed plumber who has either performed 

or supervised plumbing work must certify 

to the consumer and the Commission 

that the work complies with all relevant 

regulations, standards and codes. 

The Certificate must be completed and 

lodged when: 

• the total value of the work, including 

appliances, material and labour, is valued 

at $500 or more, irrespective of whether 

the plumber supplied the appliances or 

materials 

• a Type A gas installation has taken place 

• a below-ground sanitary drain or 

associated gully has been constructed, 

installed or altered. 

In 2007–08, the total number of 

Compliance Certificates lodged was 

340,293, an increase of 7.8 per cent 

compared to 2006–07. The figure reflected 

the continued high levels of building and 

plumbing activity in the State of Victoria 

during the period. 

The Commission audited a total of 5.1 per 

cent of all Compliance Certificates lodged 

during the year, achieving its target of a 

minimum of five per cent. 


Reciprocal recognition by category 

Total number of registrations and licences 2003–4 2004–05 2005–06 2006–07 2007–08 % change 

ANZRA certificate – overseas Lic 0 0 0 0 0 0 

Reg 6 9 11 9 9 0 

ANZRA certificate – Victorian-trained Lic 68 91 83 71 47 – 33.8% 

Reg 46 67 57 58 52 – 10.3% 

Mutual recognition Lic 11 21 18 19 26 + 36.8% 

Reg 19 17 13 18 21 + 16.6% 

NSW-Vic cross-border recognition Lic 142 121 128 131 142 + 8.3% 

Reg 113 145 141 141 135 – 4.2% 


Registration, licensing and related inquiries 


Number of over-the-counter inquiries. 8,526 8,995 8,463 – 5.9 


24

Strengthening skills and 

standards 

Following the adoption of the national 

Plumbing Training Package, plumbing 

practitioners in Victoria will now be required 

to demonstrate additional competencies in 

order to obtain a plumbing licence. 

Three core Certificate IV competencies will 

now be required in addition to the technical 

licence competencies of the relevant 

plumbing class. These are: 

• Establish business and legal requirements 

(BSBSBM401A) 

• Estimates and cost work (BCPCM4002A) 

• Carry out work-based risk control 

processes (BCPCM4001A). 

The new requirements will promote a 

greater level of professionalism into the 

Victorian industry. 

The Commission is working hard to ensure 

that the enhanced requirements do not 

inadvertently restrict the numbers of 

Licensed Plumbing Practitioners. To help 

achieve this, it has commenced a project 

which will provide online training resources 

through Victorian plumbing TAFEs. 

The online resources are designed to 

assist TAFEs to deliver training in the core 

competencies and to encourage individuals 

to undertake the training. 

The project will run for three years and 

aims to make the training resources 

available in all Victorian plumbing TAFEs by 

June 2010. To date, substantial progress has 

been made on the business and legal core 

competency. 

Reciprocal recognition of 

plumbers 

In 2007–08, the Commission continued 

its reciprocal recognition of interstate and 

overseas plumbing accreditations under five 

main categories. 

For overseas plumbing applicants, there 

are several changes occurring. Australia 

and New Zealand Reciprocity Association 

(ANZRA) will not continue beyond 2008, 

and its reference material on overseas 

qualifications has become less relevant in 

recent years. The Coalition of Australian 

Governments (COAG) Skills Task Force 

has established offshore facilities to 

assess potential plumbing migrants at five 

points of origin around the globe in the 

United Kingdom, India, South Africa, Sri 

Lanka and the Philippines. In addition, the 

Commission has for the past 12 months 

invited potential plumbing migrants 

to make an application to determine 

eligibility in advance of migrating – and as 

far as practicable is providing applicants 

with advice of their Victorian plumbing 

accreditation eligibility in advance of a final 

migration decision. 

Victorian trained practitioners who received 

reciprocity certificates under the ANZRA 

agreement in order to undertake work 

in other Australian states or overseas, 

declined by 23.2 per cent to 99 certificates. 

The National Plumbing Regulators Forum 

(NPRF), through its Licensing and Education 

Advisory Committee (LEAC) is considering 

the future need for a reciprocity certificate. 

Adoption of COAG’s mutual recognition 

provisions resulted in some applicants 

previously considered under ANZRA being 

considered under mutual recognition. 

Interstate practitioner accreditations 

recognised under mutual recognition 

provisions increased by 27 per cent to 

a total of 47. 

New South Wales based practitioners who 

are reciprocally licensed and registered 

in Victoria increased by 1.8 per cent this 

year up to a combined total of 277. The 

total number of practitioners holding a 

registration declined by 4.2 per cent, while 

the number of practitioners holding a 

licence increased by 8.3 per cent. 

Registration, licensing and 

related inquiries 

The number of personal inquiries decreased 

by 5.9 per cent to 8,463, indicating a 

preference for information delivered online. 


Examinations conducted 


Apprentice Journeyman exams 1,223 (58% pass rate) 1,406 (55% pass rate) 1,356 (57% pass rate) – 3.5 

Non-apprentice practical registration exams 254 (69% pass rate) 266 (60% pass rate) 278 (63% pass rate) + 4.5 

Practical skills tests 104 (88% pass rate) 57 (91% pass rate) 11 (91% pass rate) – 80.7 

Licence exams 474 (62% pass rate) 508 (62% pass rate) 497 (61% pass rate) – 2.1 

Miscellaneous exams 516 (61% pass rate) 406 (61% pass rate) 369 (64% pass rate) – 9.1 

Total examinations conducted 2,571 2,643 2,511 – 4.9 


Examining practitioners 

The Commission is responsible for the 

assessment of all individuals seeking 

a plumbing practitioner’s licence or 

registration. Examinations are held across 

all plumbing classes. 

While an apprenticeship is still the 

traditional form of entry to the plumbing 

industry, the Building Act 1993 provides for 

other entry options for practitioners who 

gain their plumbing skills through other 

means, such as industry experience and 

competence developed overseas or interstate. 

The Commission offers both competencybased 

practical examinations for registration 

classes for apprentices and non-apprentices, 

and theory-based examinations for licensed 

classes to determine eligibility. 

In 2007–08, there were 1,356 Journeyman 

examinations conducted, and 278 nonapprentice 

registration examinations, an 

increase of 4.5 per cent. 

Journeyman examinations were 3.5 per 

cent less than the previous year, with the 

decrease likely to reflect a transition to the 

new national training package rather than 

the beginning of a decline. The number of 

apprentices examined in the past two years 

has been significantly higher than in previous 

years and based on plumbing apprenticeship 

enrolments, this is likely to continue. 

New plumbing centre of 

excellence 

The Commission assisted the Plumbing 

Trades Employees Union, Master Plumbers 

and Mechanical Services Association of 

Australia, Air Conditioning and Mechanical 


National Fire Industry Association, the 

Department of Innovation, Industry and 

Regional Development and the Building 

Commission to construct a world class 

plumbing training facility at Brunswick. 

Known as the Plumbing Industry Climate 

Action Centre, the facility is a working 

example of innovative plumbing and 

sustainable design and is planned to have 

a 5 Star Green Star rating. It will also 

demonstrate the latest in sustainable 

plumbing systems. 

The Centre is designed to be a noncommercial 

enterprise, providing economic, 

social and environmental benefits for the 

industry and the community. It will provide 

post-apprentice plumbing practitioners with 

the most up-to-date education and training 

available in a hands-on and practical way, 

including access to leading-edge technology 

and innovation in plumbing. 

26

New plumbing centre of excellence 

raises the bar in industry best 

practice and green plumbing 

Commission is a good global 

citizen 

Following a request for assistance from 

the Solomon Islands College of Higher 

Education in Honiara, the Commission led 

an assistance partnership with the World 

Plumbing Council and the World Health 

Organisation to organise and supply a 

training assistance package for plumbers in 

the Solomon Islands. The aim was to help 

deliver better plumbing standards for the 

people of the Solomons. 

The project required the supply and 

delivery to the training authority in Honiara 

a full set of plumbing reference material, 

including class sets of the plumbing 

technical installation standards AS/NZS 

3500, and a World Health Organisation 

publication which promotes the critical 

link between plumbing and human disease 

prevention and improved public health. 

Plumbing practitioners in Victoria soon have access to a world 

class training facility promoting the latest developments in 

industry excellence. 

Located in Brunswick, the Plumbing Industry Action Climate Centre 

will raise the existing high standard of practice in the Victorian 

industry, while also leading the way on green plumbing systems. 

Chair, Plumbing Industry Advisory Council, Doug McClusky, said, 

‘This Centre will give post-apprentice plumbing practitioners the 

most up-to-date education and training available in a hands-on 

and practical way. With a Green Star rating being targeted, the 

Centre will not only teach practitioners how to incorporate more 

sustainable techniques and features into their work, it will also be a 

demonstration in itself of the latest in sustainable plumbing systems.’ 

The Commission assisted the Plumbing Trades Employees Union, 

Master Plumbers and Mechanical Services Association of Australia, 

Air Conditioning and Mechanical Contractors Association of Victoria, 

National Fire Industry Association, the Department of Innovation, 

Industry and Regional Development and the Building Commission 

to construct the facility. It is designed to be a non-commercial 

enterprise that will provide economic, social and environmental 

benefits for the industry and the wider community. 

‘This is a truly innovative concept in training facilities and it will 

help us to make the Victorian plumbing industry among the best 

in the world,’ Mr McClusky said. ‘We are now going to focus on 

promoting the facility widely through the media to ensure that 

Victorian practitioners get the most out of it and are aware of all 

the opportunities it offers. We hope that the facility will also have 

an impact on the current skills shortage in the field.’ 


Environmental best practice 

This year, the Commission extended the audit process 

to capture 5 Star sustainability data and ensure that 

environmental water efficiencies and energy compliance 

are being achieved. This included audits for rainwater 

tanks, solar panels and recycled water installations.

The Plumbing Industry Commission works to 

ensure a sustainable built environment by: 

• promoting sustainable practices to further the Victorian 

Government’s sustainability objectives 

• strengthening compliance with energy and water 

efficiency requirements. 


In 2007–08, the Commission collected 

more than 600 contributions from the 

industry through the PlumbSmarter 

initiative. Collated in The path to a greener 

plumbing industry report, the contributions 

provided a range of ideas and suggestions 

as to how the industry could become more 

sustainable. These changes have now been 

categorised into eight opportunities for 

saving water and energy. 

One opportunity that is already being 

put into action is a project which aims 

to save 450 million litres of water used 

in the routine maintenance and testing 

of fire sprinklers. This is being conducted 

in partnership with City West Water, 

South East Water, Yarra Valley Water, 

the Department of Sustainability and 

Environment and the Building Commission. 

This year, the Commission extended the 

audit process to capture 5 Star sustainability 

data and ensure that environmental water 

efficiencies and energy compliance are 

being achieved. This included audits for 

rainwater tanks, solar panels and recycled 

water installations. 

Other achievements included: 

• hosting a recycled water forum involving 

six metropolitan and regional water 

authorities. The aim of this forum was 

to develop a uniform approach to 

recycled water installations in all water 

authority areas 

• delivering two presentations in Bendigo 

and Echuca, sponsored by Coliban Water, 

on recycled water to 180 practitioners 

• jointly launching with the Building 

Commission the Make Your Home 

Green online portal – a one-stop shop 

for information on sustainability in the 

built environment – which received an 

impressive 28,850 distinct visits between 

3 May and 30 June 2008. 

Environmental best practice 29



Number of buildings meeting 

the minimum energy and 

water-efficiency standards 

Continue implemention 

of 5 Star standard for 

new dwellings 

47,000 new buildings estimated to 

meet minimum energy and water 

efficiency standards 

Yes 

Collaborate with 

Government to further 

develop 5 Star standard 

Practitioner and consumer 

knowledge of environmentally 

sustainable plumbing designs, 

materials and processes 

50,000 distinct visits per 

year to Make Your Home 

Green online portal 

Jointly launched Make Your Home 

Green online portal, receiving 28,850 

distinct visits: May–June 08 

Yes 

173,000 distinct visits 

per year 

Number of flagship projects 

that exceed the minimum 

regulatory energy and waterefficiency 

standards 

Establish PlumbSmarter 

project team and 

increase project 

awareness 

Completed The path to a greener 

plumbing industry report identifying 

eight opportunities for saving water 

and energy 

Yes 

Initiate projects based 

on eight opportunities 

Commenced fire sprinklers project Yes Implement water saving 

programs for high 

water-user buildings 

Energy and water-efficiency 

performance in selected 

residential, commercial and 

public buildings 

Extend audit process 

to capture 5 Star 

sustainability data 

Performed 1,312 recycle water 

audits 

Yes 

Perform 1,350 recycle 

water audits 

PlumbSmarter project paves 

the way for a more sustainable 

industry 

In 2006–07, the Commission developed 

the PlumbSmarter initiative to better 

engage the State’s plumbing industry in 

sustainability change. 

Through PlumbSmarter, the Commission 

sought to capitalise on the unique 

knowledge and experience of plumbers by 

asking them to suggest specific changes to 

plumbing practice, products and regulations 

for a more sustainable industry. 

After gaining key stakeholder input and 

support, establishing a project team and 

creating awareness of the project through 

various mediums, the PlumbSmarter 

website went live in July 2007. The website 

sought to collect ideas across several 

categories of plumbing work. 

The Commission collected more than 600 

contributions from the industry, providing 

a range of ideas and suggestions as to 

how the industry could become more 

sustainable. These changes, collated in 

the report entitled The path to a greener 

plumbing industry, have now been 

categorised into eight opportunities for 

saving water and energy: 

• Sustainability as the everyday work of 

plumbers 

• Sustainability skills for Victorian plumbing 

• Sustainability innovation gateway 

• Sustainability knowledge bank 

• Hot water systems 

• Fire sprinklers 

• Water-neutral pools 

• Sustainable plumbing-system design. 

In 2008–09, the Commission will 

initiate further projects based on the 

eight opportunities for better plumbing 

sustainability practices identified in the 

survey and complete the fire-sprinkler 

water conservation project. 

30

5 Star sustainability audits performed 

Solar panels 2007–08 

Number of installations inspected – passed 594 

Number of installations inspected – failed 0 

Total number of solar panel audits performed 594 

Water tanks 

Number of 2,000 litre water tanks supplying all cisterns – passed 618 

Number of 2,000 litre water tanks supplying all cisterns – failed 17 

Total number of water tank audits performed 635 

Recycled water installations 

Number of recycled water installations – passed 83 

Number of recycled water installations – failed 0 

Total number of recycled water systems audits performed 83 

Total 5 Star audits performed for the period 1,312 

Total number of 5 Star audits that failed 17 

Saving water in fire sprinkler 

maintenance 

The Commission is partnering with City 

West Water, South East Water, Yarra Valley 

Water, the Department of Sustainability 

and Environment and the Building 

Commission on a project which aims to save 

450 million litres of water a year by changing 

procedures and technologies for testing and 

routinely maintaining fire sprinklers. 

Currently, the maintenance and testing 

of sprinklers uses millions of litres of 

drinking water every year. The Commission 

and its project partners are seeking 

ways of conserving water while ensuring 

that the safety of human lives is not 

compromised. The Fire Protection Services 

Industry, the Communication, Electrical 

and Plumbing Union, and leaders in 

the commercial property and facility 

management industries are also actively 

supporting the project as an expression 

of their commitment to environmental 

sustainability. 

Key objectives of the 12-month project 

include: 

• using a sample selection of properties to 

demonstrate water saving practices 

• implementing water saving programs for 

high water-user buildings 

• motivating change among property 

owners and managers 

• pursuing regulatory and other industry 

framework changes to ensure greater 

water efficiency in the maintenance of 

fire sprinklers. 

In the coming year, a range of activities will 

be undertaken to achieve these goals, 

including research, developing a management 

guide for property owners, and a 

communication campaign to encourage 

property owners and managers to test 

sprinklers monthly instead of weekly. 

Other initiatives include investigating 

changes to the building regulations, as well 

as training and accreditation programs for 

fire sprinkler installation and maintenance. 

5 Star sustainability audits a 

plus for the environment 

In 2007–08, the Commission extended 

the audit process to capture 5 Star 

sustainability data and ensure that 

environmental water efficiencies and 

energy compliance are being achieved. 

The 5 Star audits for sustainability have 

steadily increased during the year, due 

to the number of new homes installing 

a reticulated recycled water system as a 

5 Star option, as well as solar panels and 

rainwater tanks. 

The Commission also consulted with 

all water authorities on greywater and 

recycled water supplies to develop 

initiatives and guidelines for dual water 

pipe recycling systems. 


The Plumbing Industry Commission and the Building 

Commission have collaborated closely with the Department 

of Planning and Community Development, the Department 

of Sustainability and Environment and other Government 

stakeholders to develop policy options for the next phase 

of the 5 Star standard. 

Increasing awareness of energy 

and water efficient options 

The Commission plays an important role 

in educating the industry about energy 

and water efficiency. To continue to 

increase awareness in this area, the 

Commission this year: 

• presented at City West Water training 

sessions on recycled water to nearly 

300 Licensed or Registered Plumbing 

Practitioners 

• held six meetings relating to the 

development of 24 townhouses utilising 

greywater treatment systems at Point 

Cook by monitoring and assisting 

plumbers, drainers and the builder 

• produced the final draft of the Recycled 

Water Guide 2008 to be distributed 

to Licensed Plumbing Practitioners in 

partnership with the network utility 

operators 

The Building and Plumbing Industry 

Commissioner spoke at 15 international 

and national conferences on sustainability 

in the plumbing and building environment 

including the Green Building Council 

of Australia’s ‘Green Cities’, the Master 

Plumbers and Mechanical Services and the 

Housing Industry Association conferences. 

Further developing Victoria’s 


The next phase of the 5 Star standard will 

see refinement of the successful 5 Star 

standard program. The next phase standard 

is being developed in response to 

Government policy objectives to further 

reduce the ecological footprint of Victorian 

homes, as well as Government response 

to the Victorian Competition and Efficiency 

Commission Inquiry into Housing 

Regulation in Victoria. 

Key elements of the next phase of the 

5 Star standard are expected to include: 

• reforming the standard into a more 

explicitly performance-based regulatory 

instrument 

• converting current prescriptive 

requirements for installation of either a 

rainwater tank or a solar water heater 

into clearly articulated greenhouse and 

water performance objectives. 

The Plumbing Industry Commission and 

the Building Commission have collaborated 

closely with the Department of Planning 

and Community Development, the 

Department of Sustainability and Environment 

and other Government stakeholders 

to develop policy options for the next 

phase of the 5 Star standard. 

Make Your Home Green online 

portal a great success 

On 3 May 2008, the Commission jointly 

launched with the Building Commission, 

the Make Your Home Green online portal 

(www.makeyourhomegreen.vic.gov.au) – 

a one-stop shop for information on 

sustainability in the built environment 

for Victorian consumers. 

The site provides a range of practical hints 

and tips on how consumers can make 

their homes more sustainable as well 

as interactive features such as energy 

calculators. 

On the day of its launch, Make Your Home 

Green received an impressive 37,059 hits, 

and has received 28,850 distinct visits in 

total to 30 June 2008, making it one of the 

most successful initiatives for consumers by 

the two Commissions. 

Reducing greenhouse gas 

emissions at HQ 

In 2008, the Commission engaged Ark 

Climate to conduct a greenhouse gas 

inventory of the building at 450 Burke 

Road, Camberwell. The inventory included: 

• audits of energy and bills 

• a facilities audit 

• staff travel data. 

The inventory identified a number of 

building energy efficiency opportunities, 

which were presented to the Commission 

in a report. 

In 2008–09, the Commission will consider 

the identified opportunities to reduce 

greenhouse gas emissions. 

32

ResourceSmart program a step 

in the right direction 

As part of its commitment to sustainability, 

the Commission is participating in the 

Victorian Government’s ResourceSmart 

program, which aims to help Government 

departments and statutory authorities 

achieve more sustainable resource practices. 

By participating in ResourceSmart, the 

Commission plans to become better 

informed about how it can reduce energy 

and waste in its own operations. It also 

hopes to inspire new ideas in sustainability. 


In 2008–09, the Commission’s 

environmental best practice strategy will: 

• promote plumbing practices to further 

the Victorian Government’s sustainability 

objectives 

• initiate further projects based on the 

eight opportunities identified in the 

PlumbSmarter project 

• develop a range of activities as part of 

the fire-sprinkler water conservation 

project 

• launch a media campaign around the 

possible hazards associated with drinking 

rainwater from tanks 

• promote water saving tips on the Make 

Your Home Green online portal. 

Plumbing innovation turns black 

and greywater green 

The Victorian plumbing industry is leading the way on recycled 

water usage, with several new building projects implementing 

progressive water recycling designs. 

John McCulloch, a Technical Officer with the Commission’s 

Compliance and Monitoring Division, said the new projects took a 

long term view of water conservation. 

‘We have been involved in a new project at Point Cook where a 

developer has incorporated a series of greywater treatment systems 

that will provide water to be used for toilet flushing and irrigation 

in 23 two-storey townhouses,’ he said. ‘Toilet flushing alone 

accounts for about 20 per cent of domestic water usage so if you 

can flush your toilets with recycled water, that’s a significant saving 

over time.’ 

Mr McCulloch said there had been increasing interest from 

developers in incorporating treatment processes for greywater 

(from clothes washing machines, baths and showers) and black 

water (water contaminated by faecal waste) into new projects 

– despite the additional costs. 

‘There is always a cost associated with incorporating systems like 

this because you have to install more drains and introduce separate 

piping to keep the grey and black water separated,’ he said. ‘But 

people are recognising that water is not going to get cheaper, so 

the long term benefits are really obvious. Our involvement as a 

regulator is to make sure the new systems are installed to the 

current standards.’ 

Mr McCulloch said the turning tide of sustainable development 

was not limited to low density suburban developments; high-rise 

developers were also thinking green. 

‘There are several projects in the CBD with an integral grey and black 

water treatment plant located in the basement,’ he said. ‘These 

projects treat the water to a high standard, where it is reticulated 

within the building and re-used for toilet and urinal flushing. 

‘The projects are a new innovation for Victoria and they are leading 

the way in sustainable development.’ 


Community accountability 

In 2007–08, the Commission continued to protect the integrity 

of plumbing standards by carrying out audits and inspections 

and conducting investigations into non-compliant practitioners.

The Plumbing Industry Commission 

continuously works to ensure safe plumbing 

services for the community by: 

• maintaining consumer confidence in plumbing services 

• informing consumers about plumbing services 

• optimising the investigation and domestic plumbing 

dispute resolution process 

• monitoring the insurance system to ensure it provides 

adequate consumer safeguards. 


In 2007–08, the Commission continued to 

protect the integrity of plumbing standards 

by carrying out audits and inspections 

and conducting investigations into noncompliant 

practitioners. The Commission 

conducted 609 investigations into 

practitioners and unregistered persons, 

one per cent less than in 2006–07. The 

number of practitioners brought before 

disciplinary hearings increased by 18 per 

cent, while the number of unregistered 

persons prosecuted in the Magistrates 

Court decreased by 52 per cent. 

The Commission completed a total 

of 17,441 audits, representing 5.1 per 

cent of the total number of Compliance 

Certificates lodged. It also audited 2,404 

below-ground sanitary drains; representing 

5.5 per cent of the total number of drains 

booked for inspection and achieved its 

target of five per cent. 

Other achievements included: 

• launching a monthly e-bulletin as 

part of a broader strategy to increase 

practitioner awareness and understanding 

of the Commission’s functions 

• worked extensively on improving its 

communication during the year by 

conducting a major review of all its 

communications material and continued 

to deliver the new look InPipe magazine, 

previously known as Registered Plumber 

• establishing a program of six-monthly 

workshops with local government and 

industry stakeholders to help strengthen 

the relationship between the industry 

and local government. 

Community Accountability 35



Consumer satisfaction with 

plumbing services 

70% of complaints 

resolved within 60 days 

or less 

71% of complaints resolved within 

60 days or less 

Yes 


resolved within 60 days 

or less 

Audited plumbing work 

compliant with the Plumbing 

Regulations 

5% of Compliance 

Certificates lodged 

audited 

Performed 17,441 audits (5.1%) Yes 5% of Compliance 


audited 

Number of disputes as a 

percentage of Compliance 


1% 1% Yes 1% 

Volume of plumbing 

information accessed by 

consumers 

Increase visits to 

Commission website 

184,195 visits to Commission 

website 

Yes 

190,000 visits to 

Commission website 

122,000 consumers visit 

major home shows 

80,584 consumers visit two major 

home shows 

No 

Two major home shows 

Timeliness of investigations 

and domestic plumbing 

dispute resolution process 

Written complaints 

assessed/acknowledged 

within 5 days of receipt 

of complaint 

90% of complaints acknowledged 

within 5 days of receipt of complaint 

Yes 


acknowledged within 

5 days of receipt of 

complaint 

Audits and inspections completed 

Performance measure 2006–07 

number 

2006–07 

% 


number 


% 

Audits completed 16,097 5.1% 17,441 5.1% 

Audits failed 1,144 7.1% 1,956 11.2% 

Sanitary drains booked for inspection 42,227 n/a 43,670 3.4% 

Sanitary drains inspection 2,715 6.4% 2,404 5.5% 

Sanitary drains failed inspection 125 4.6% 83 3.5% 


Audits and inspections 

All plumbing work requiring a Compliance 

Certificate in Victoria must be carried out 

by, or under the supervision of, a licensed 

practitioner. Each licensed practitioner 

certifies that their work complies with the 

Regulations, standards and codes through 

the Compliance Certificate system. 

The integrity of the system and work 

standards are protected through random 

Commission inspections and audits and 

supported by appropriate sanctions where 

necessary. 

In 2007–08, the Commission completed a 

total of 17,441 audits, representing 5.1 per 

cent of the total number of Compliance 

Certificates lodged. This equalled the 

2006–07 period when there were 16,097 

audits, representing 5.1 per cent of the 

total number of Compliance Certificates 

lodged. 

The Commission also audited 2,404 belowground 

sanitary drains, representing 5.5 per 

cent of the total number of drains booked 

for inspection and achieving its target of 

five per cent. A total of 3.5 per cent of 

below ground drains failed initial inspection. 

The Commission reported a total failure 

rate for audits of 11.2 per cent, an increase 

of 4.1 per cent from 2006–07. 

36

Investigating practitioners 


Investigations conducted 388 617 609 –1% 

Disciplinary hearings 12 45 53 +18% 

Prosecutions 26 62 30 –52% 

Notices and orders issued 184 118 100 –15% 


Complaints and investigations 


plumbing work is regulated to ensure it 

meets safety, technical and compliance 

standards. The Commission is responsible 

for working with the community to address 

and resolve any concerns in relation to 

standards of regulated plumbing work. 

In 2007–08, the Commission focused on 

investigating complaints from consumers 

and the industry in relation to breaches 

of the Act and Regulations, undertaking 

prosecutions as a result of investigations 

where necessary. 

The Commission: 

• addressed 4,717 telephone calls regarding 

complaints and seeking advice during the 

year, three per cent less than in 2006–07 

• responded to 683 written complaints 

about plumbing work, an increase of 28 

per cent from 2006–07, and representing 

less than one per cent of all Compliance 

Certificates lodged – the increase 

was partly a result of the continued 

communications strategy that raised 

consumer awareness of the Commission’s 

services 

• conducted 609 investigations into 

practitioners and unregistered persons, 

one per cent less than in 2006–07 

• carried out site visits and had contact 

with 3,046 practitioners, a decrease of 

one per cent from 2006–07 

• prosecuted 30 unregistered persons in 

the Magistrates Court, a decrease of 

52 per cent from 2006–07 

• brought a total of 53 practitioners before 

disciplinary hearings, an increase of 18 

per cent from 2006–07. Of these, nine 

inquiries were held in regional Victoria, 

an area of activity the Commission will 

continue into next year. 

Classes of plumbing relating 

to complaints 

22% 

22% 

10% 

18% 

12% 

17% 

19% 

Roofing 

Sanitary 

Draining 

Gas 

Water 

Mechanical services 


10% 

18% 

12% 

17% 

19% 

Community accountability 37

Improving the complaints and 

resolution process 

In 2007–08, the Commission continued 

to provide a telephone complaint and 

enquiry service. A total of 4,717 telephone 

complaints and enquiries were received, 

with 86 per cent of these resolved without 

the need to proceed to a formal complaint. 

It also worked to deliver an efficient service 

regarding formal complaints, with 71 per 

cent of formal complaints resolved within 

60 days or less. 

The Commission continued to monitor 

persons carrying out plumbing activity to 

ensure that they were licensed or registered 

to carry out plumbing work. A total of 

10 per cent of overall activities comprised 

random site visits, with 3,046 persons 

spoken to during these visits, a decrease of 

one per cent from last year. 

To improve its service to consumers, the 

Commission developed a questionnaire 

around its service delivery standards this 

year. The Commission received positive 

feedback about its service in the questionnaire 

and a 90 per cent approval rating. 

Enhancing infringement and 

disciplinary processes 

In 2007–08, the Commission reviewed 

its processes for the recovery of unpaid 

fines arising from Commission disciplinary 

hearings. 

Of the 45 infringement notices issued 

during the year (including withdrawal of the 

infringement and referral to a disciplinary 

hearing where payment has not occurred): 

• 26 were paid in full 

• 18 entered payment agreements or were 

still within the payment period 

• one was withdrawn. 

Of the 53 disciplinary hearings held during 

the year: 

• 20 cases were closed with all 

requirements met 

• 27 entered payment agreements, were 

still within the payment period, or had 

other outstanding actions 

• six were referred for recovery action. 

Publications review 

The Commission conducted a major review 

of its publications in 2007–08 to ensure 

they were current, relevant and in line with 

agreed key messages. 

A total of 23 publications were reviewed, 

including some materials in languages 

other than English. All of the publications 

will emphasise the importance of using 

a Registered and Licensed Plumbing 

Practitioner and promote Registered and 

Licensed Plumbing Practitioners as highly 

skilled and well-trained professional 

tradespeople. Many of the publications will 

promote sustainability and water efficient 

measures. 


The new look InPipe magazine – previously 

known as Registered Plumber – was 

distributed to 21,848 subscribers. 

The new magazine was well received by 

the industry, with 93 per cent of readers 

reporting they were happy with the balance 

between human interest and technical 

information and 54.3 per cent of readers 

rating the publication as ‘above average’. 

InPipe magazine stories focused on 

sustainability topics, including tips on 

water savings, how to participate in the 

PlumbSmarter project and the progress of 

the new Plumbing Industry Climate Action 

Centre. The magazine is now printed on 

recycled paper. 

Informing practitioners and 

consumers 

In 2007–08, the Commission launched a 

monthly e-bulletin as part of a broader 

strategy to increase practitioner awareness 

and understanding of its functions. 

The e-bulletin is designed to keep 

practitioners updated on regulatory 

changes and other relevant information. 

It currently has 460 subscribers, with 

the Commission aiming to increase this 

number to more than 1,000 in 2008–09. 

Internally, the e-bulletin has improved the 

Commission’s online presence, helping 

to reduce the volume of paper-based 

media required to communicate with 

practitioners. 

The Commission also exhibited at the 

Master Builders Association of Victoria 

Building & Home Improvement Expo 

to 20,404 attendees and the RACV 

Home Show and Garden Expo to 60,180 

attendees. Key messages promoted at the 

shows included saving water, making your 

home green, using a registered and licensed 

plumber and adopting the 5 Star standard. 

In addition, the Commission website 

received 184,195 page visits. 

38

Working with local government 

for better plumbing outcomes 

Maintaining strong relationships with local 

government continued to be a priority for 

the Commission in 2007–08. 

This was achieved by partnering with 

industry stakeholders, including the 

Victorian Municipal Building Surveyors 

Group, the Municipal Association of 

Victoria, local government professionals, 

and municipal councils. 

To strengthen its relationship with local 

government, the Building Commission, the 

Plumbing Industry Commission and the 

Municipal Association of Victoria established 

a program of six-monthly workshops. The 

workshops were hosted by the Building 

and Plumbing Industry Commissioner, Tony 

Arnel and the Municipal Association Victoria 

CEO, Rob Spence and were attended by 

municipal council senior managers from 

throughout Victoria. 

The two Commissions also worked together 

to hold regular meetings, workshops and 

presentations on topical issues with other 

levels of management within Victorian 

municipal councils. They also participated 

in two conferences – the Municipal 

Association Victoria Local Government 

Asset Management Conference and the 

LGPro conference – which were both aimed 

at a local government audience. 


In 2008–09, the Commission plans to 

improve accountability to the community by: 

• improving and simplifying audit and 

inspections processes, with a particular 

emphasis on sustainability audits 

• providing better safeguards for 

consumers by driving greater levels of 

compliance 

• continuing to focus the investigation 

strategy on responding to formal 

complaints, conducting investigations 

into breaches and undertaking 

prosecutions where necessary. 

5 Star sustainability audits give 

green plumbers top marks 

The Plumbing Industry Commission has successfully introduced 

5 Star sustainability audits into its audit program to ensure that 

environmental water efficiencies and energy compliance are being 

achieved. The audits cover 5 Star installation options such as 

rainwater tanks, solar panels and reticulated recycled water systems. 

Peter Cairnes, Manager of the Commission’s Compliance and 

Monitoring Division, said the number of new homes being installed 

with reticulated recycled water systems, as well as solar panels and 

rainwater tanks, had increased substantially in the past few years as 

a result of legislation and consumers being more environmentally 

aware when building or renovating homes. 

‘Sustainable building practices, materials and technology have 

changed significantly since the introduction of the 5 Star standard 

in 2004,’ he said. ‘We have extended the audit process to include 

5 Star installations to help protect consumers and ensure that the 

installations are creating the water and energy efficiencies they’re 

supposed to.’ 

During the year the Commission visited 1,312 sites where rainwater 

tanks, solar panels and recycled water systems had been installed. 

Of these, only 17 rainwater tanks had been installed incorrectly. 

‘Initially, the identification of pipework associated with rainwater 

and recycled water installations where an alternative water supply 

(drinking water) was provided, was not always complied with, as it 

was difficult to obtain the required identification labels, signs and 

coloured pipework,’ said Mr Cairnes. ‘Now there are manufacturers 

that provide all the labels and signs and there is purple and green 

pipework readily available.’ 

Mr Cairnes said that the Commission will continue the 5 Star sustainability 

audits to ensure that the installation of future technologies 

and building materials is compliant with industry standards. 

‘The number of 5 Star audits is directly attributed to the new 

housing industry and although the building industry is susceptible 

to economic changes, the demand for 5 Star audits will continue to 

increase in line with building and consumer demand.’ 

Community Accountability 39

Our people 

In 2007–08, the Commission embarked on a project to 

develop core values that reflected the organisation’s 

attitude to the community, customer service, operations 

and employees.

The Commission aims to match its human 

resources, culture and behaviour with its 

corporate and business strategies. 


In the coming year, the Commission 

plans to: 

• implement the Management Capability 

Framework Phase 2 

• embed new Commission values 

• develop an online induction program 

• review the Commission’s performance 

management system 

• develop a customer service/stakeholder 

management framework. 

Organisational profile 

As at 30 June 2008, the Commission 

employed 50 staff (or 48 full-time 

equivalents). 

The Commission is further supported by a 

Corporate Services Division comprising 35.4 

full-time equivalent staff providing services 

to both the Commission and the Building 

Commission in areas, including finance, 

business services, corporate and business 

planning, information management, 

marketing and human resources. 

The Commission is committed to equal 

employment access for women: 38 per cent 

of its employees are women. 

Occupational health and safety 

The Commission’s workplace wellbeing 

initiatives address the Occupational Health 

and Safety Act 2004 and focus on employee 

wellbeing. This year the Commission 

achieved its goals in this area through 

regular communication, consultation and 

education via the Workplace Wellbeing 

Forum, the Safety First newsletter and an 

induction and orientation program for new 

employees. A safe and healthy workplace 

is a priority with regular hazard hunts, 

ergonomic checks and annual flu injections. 

The Wellbeing Committee also 

performs the requirements of the 

Consultative Committee as outlined 

in the Plumbing Industry Commission 

Agreement 2006 (EBA). The Committee 

considers occupational health and 

safety requirements and is a vehicle for 

consultation regarding major change and 

issues concerning employees. 

Our people 41



Comply with occupational health and 

safety standards 

0 days lost to occupational 

health and safety 

0 Yes 0 

Be an employer of choice through the 

provision of life balance initiatives 

Educate employees and 

managers on life balance 

initiatives 

70% life balance 

participation by staff 

Yes 70% 

Better inform Commission employees 

Launch joint PIC and 

BC intranet 

Delivered 1 December 2007 

with 80% of employees 

viewing daily 

Yes 

Implement Howzat 

for an idea! program 

Undertake core values review 

Define core values 

with staff 

All employees consulted to 

determine core values 

Yes 

n/a 

Occupational and base salary standards 

Level 2005–06 2006–07 2007–08 

Executives and managerial 

($90,000 to $129,999) 

Professional 

($71,500 to $96,000) 

Associate professional (including technical) 

($55,500 to $73,000) 

Administrative/secretarial/customer service 

($32,600 to $57,600) 

5 (10%) 5 (10%) 5 (12%) 

5 (10%) 7 (14%) 7 (12%) 

14 (29%) 22 (44%) 24 (48%) 

25 (51%) 16 (32%) 14 (28%) 

Total head count 44 50 50 

Equivalent full-time (EFT) 44 47.2 48 


Gender profile 

2005–06 2006–07 2007–08 

Female 19 (39%) 17 (34%) 19 (38%) 

Male 30 (61%) 33 (66%) 31 (62%) 

Total head count 49 (100%) 50 (100%) 50 (100%) 


42

Life-balance participation 2007–08 

Percentage of total 

workforce 

100% (50) 

Part-time employees 12% (6) 

Alternative work location 32% (16) 

Compressed work 

arrangements 

n/a 

Volunteering leave* 10% (5) 

Job share 

n/a 

* Introduced December 2007 


Life balance and wellbeing 

The Wellbeing Committee has assisted 

the Commission to drive its life balance 

and wellbeing strategy. In 2007–08, the 

Commission developed a life-balance 

booklet – a resource to encourage employees 

to consider life-balance proposals that 

benefit them individually as well as the 

organisation. 

Other wellbeing initiatives included 

flu injections, a healthy body-weight 

information program, and regular healthy 

living seminars on topics such as diet and 

drug and alcohol use. 

A major focus in 2007–08 was the 

introduction of corporate volunteering, 

with Commission employees participating 

in the Salvation Army’s Christmas giftwrapping 

program. 

In addition, the Commission launched 

a transition to retirement program. 

The program incorporates coaching for 

employees and an information session, as 

well as a resource booklet and intranet site 

for educating employees and managers 

about making the transition to retirement. 

The Commission also provided refresher 

training for all managers, emphasising 

the promotion of life-balance initiatives, 

including flexible start and finish times, 

job sharing and alternative work locations. 

Employee relations 

There was no time lost due to industrial 

disputes during this period. 

Investing in learning and 

development 

The Commission’s learning and 

development program continued to 

advance skills and capability in the areas 

of communication and customer service, 

embed the organisation’s culture, and 

enhanced technical capability. A particular 

focus was leadership development, with 

the launch of the management capability 

framework, a flexible framework designed 

to enhance a number of key management 

capabilities. 

Knowledge forums were held throughout 

the year to promote the Commission’s 

culture of knowledge and information 

sharing. Topics included sustainability 

and regulation and various organisational 

projects. 

Ethical conduct 

All Commission employees are required 

to act with integrity and objectivity. They 

are regularly advised of their obligations 

under the Victorian Public Sector Code of 

Conduct and can access the Code on the 

Commission’s intranet. 

When employees are appointed, they are 

advised of the requirement to declare any 

potential conflicts of interest to ensure 

these are managed appropriately. 

All members and executives of the 

statutory bodies administered by the 

Commission must sign a Declaration of 

Pecuniary Interest. 

Diversity 

The Commission values diversity in 

the workforce and community. All new 

employees participate in a comprehensive 

induction program which includes 

education in the Managing Equity and 

Diversity Policy. This policy is also accessible 

to all employees via the intranet. 

The Commission completed an employee 

diversity survey in early 2008 to ensure 

Commission strategies in this area are 

aligned to employee needs. The results 

of the survey indicate the Commission 

is gaining momentum in achieving good 

practice in the areas of diversity and 

inclusiveness. 

Our People 43

Core values 

In 2007–08, the Commission embarked 

on a project to develop core values that 

reflect the organisation’s attitude to the 

community, customer service, operations 

and employees and provided an ongoing 

guide to shape staff behaviours. This 

project was conducted jointly with the 

Building Commission and all employees 

were consulted through workshops and 

an employee vote. The newly established 

values are: 

• Future focus 

• Achieving together 

• Inspiring excellence 

• Respecting individuals 

• Ensuring trust. 

The Commission will focus on educating all 

employees in the new values in 2008–09. 

It will also ensure they are integrated into 

all aspects and levels of the organisation and 

become an integral part of the Commission’s 

performance management system. 

Effective workforce 

management 

The Commission began a new corporate 

orientation program this year to provide 

new employees with a more holistic view 

of the organisation’s statutory roles. It also 

conducted a review of all human resource 

policies to ensure currency of information 

and consistency with public sector 

standards. Employees can access these 

policies on the Commission’s intranet. 

Another major initiative was the creation 

of an online recruitment toolkit to assist 

managers in recruitment and selection and 

ensure that the public sector principles 

of equity and merit are applied to all 

recruitment and selection processes. 

The Commission implemented the 

CHRIS21 Human Resource Information and 

Payroll System to enhance its payroll and 

human resource reporting functionality. 

This incorporated an online employee 

self-service system for all staff. 

The Commission regularly conducts 

statistical analysis to measure and monitor 

activities, including recruitment, life balance 

and salaries. In 2007–08, it conducted an 

organisational alignment survey that 

measured the extent to which employee 

actions, behaviours and outcomes reflect the 

organisation’s strategies and long-term aims. 

44

The Commission’s learning and development program 

continued to advance employee skills and capability. 

Merit and equity 

The Commission follows the Public 

Administration Act 2004 to ensure that 

its conduct is based on merit, fairness, 

equality and avenues for redress against 

unreasonable treatment. Similarly, all 

staff are expected to act with impartiality, 

integrity, accountability and provide 

responsive services. 

Improved employee 

communication 

To achieve the Commission business goals, 

it is vital that all staff communicate, are 

informed and talk with a consistent voice 

and message. 

Three initiatives were undertaken in 

2007–08 that work towards this goal. 

The joint Building Commission and 

Plumbing Industry Commission intranet 

was developed to support all staff, whether 

in head office, home-based or regional. 

Launched on 1 December 2007, it is being 

viewed by 80 per cent of Commission 

employees daily. 

Organisational briefings took place in an 

effort to improve internal communication. 

The Commission held a number of 

focus groups and consulted with other 

Government departments on the best ways 

to ensure that employees communicate 

with one another and are well informed. 

The Commission held six staff briefings 

and conducted three internal campaigns to 

keep staff informed and give them a better 

understanding of the Commission’s vision. 

The Howzat for an idea! program was 

developed to encourage a culture 

of creativity and innovation at the 

Commission, as well as provide a forum 

for open discussion. The program will 

make better use of the intranet and other 

promotional media at the Commission. 

A key focus for 2008–09 will be to 

implement ideas from the program. 

The Indigenous Apprenticeship 

Scheme 

The Indigenous Apprenticeship Scheme 

will see its first intake of young Aboriginal 

people graduate in 2008 as qualified 

tradesmen and women. Following their lead 

are two third-year, two second-year and six 

first-year trainee plumbers. 

The project recognises that employment 

is a social determinant of health and 

contributes to addressing the skills needs 

in many Aboriginal communities. 

This scheme is supported by 370 Degrees 

Group Training Company, the Plumbing 

Industry Commission, the Plumbing Trades 

Employees Union and the Australian 

Government Department of Education, 

Employment and Workplace Relations. 

Our People 45

Corporate governance 

The Plumbing Industry Commission’s recent alignment with 

the Building Commission has enabled access to facilities and 

expertise that has improved the way it does business.

Objectives 

The Plumbing Industry Commission uses a strong 

corporate governance framework to ensure that it meets 

its objectives, is efficient in its operations, is accountable 

for its decisions and complies with the relevant Acts 

and Regulations. 

Responsible Minister 

The Commission is part of the portfolio of the 

Minister for Planning, Justin Madden, MLC. 

Powers, functions and duties 

The Commission is a statutory authority 

established under Part 12A of the Building 

Act 1993 to regulate plumbing work with 

the aim of ensuring it is carried out safely 

and competently. This is achieved through 

the efficient and effective administration 

of the plumbing regulatory system 

for community health and safety and 

environmental benefits. 

The Commission derives its operational 

functions, powers and duties from the Act 

and the Plumbing Regulations 1998. 

The Commission’s operational revenue is 

derived from fees (registrations, licences, 

Compliance Certificates, special audits 

and inspections and examinations), sale of 

publications, rent and government grants. 


The Executive Leadership Team is 

responsible for the Commission’s 

strategic direction and its organisational 

effectiveness. It consists of: 

Commissioner 

Tony Arnel 

Chief Financial Officer and Director 

Business Services 

Paul Crapper* 

Director, Practitioner Registration, 

Development and Compliance 

Gil King 

Director, Regulatory Development 

Jeff Norton 

General Manager, Corporate Services 


General Manager, Operations 


Manager, People and Culture 


* Acting General Manager, Corporate Services from 


Corporate Governance 47

Operational Management 

Team 

The Executive Leadership Team is supported 

by the Operational Management Team 

which is responsible for the Commission’s 

operational management direction. It 

consists of: 

Manager, Accounting 

Naomi Widdowson 

Manager, Compliance and Monitoring 

Peter Cairnes 

Manager, Information Management 

Zoran Savanovic 

Manager, Investigations 

Paul Harris 

Manager, Marketing and Public Relations 

Susannah Tidemann 

Manager, Practitioner Licensing and 

Development 

Gerard O’Farrell 

Manager, Regulatory Development 

Joanne Patterson 

Corporate and business 

planning 

Consistent with the alignment of the 

Building Commission and the Plumbing 

Industry Commission, the implementation 

of the 2007–12 Corporate Plan strategic 

objectives resulted in a greater organisational 

focus on staff involvement through the 

development of cross-organisation 

strategy teams. 

Teams took responsibility for the four 

strategic objectives of Regulatory Excellence, 

Industry Responsibility, Environmental Best 

Practice and Community Accountability. 

Each team’s approach to translating 

strategic objectives into specific operational 

plans resulted in increased integration 

and alignment between business activities 

and corporate direction to develop and 

implement the 2008–09 Annual Business 

Plan and Annual Budget. 

The commitment to enhance community 

and stakeholder accountability and 

Corporate Plan measurement also led to 

the development of an organisation-wide 

planning, measurement and reporting 

software system, known as CorVu. This 

system will strengthen integrated planning 

and reporting on organisational capacity to 

deliver corporate and business objectives 

against predetermined targets and within 

the budgetary frameworks. The system 

will be fully implemented for corporate 

and business plan reporting in the first half 

of 2008–09. 

The enhancement of the already existing 

quality assurance program with an 

extensive cross organisational processmapping 

exercise contributed to building 

organisational capability and increased 

organisational integration. This exercise will 

continue into the next financial year by 

translating the process maps into quality 

procedures for implementation across the 

organisation. 

Risk management 

In 2007–08, the Commission continued to 

enhance its Business Risk Management 

Policy and annual Business Risk Management 

Strategy with the development of an 

overarching Risk Management Framework 

consistent with the Victorian Government 

Risk Management Framework. 

The Commission’s Risk Management 

Framework, Business Risk Management 

Policy and Strategy are tailored around 

a quarterly review of the business risks 

identified by the Executive Leadership 

Team and the Commission’s Operational 

Management Team. 

The Commission’s risk evaluation/analysis 

criteria and definitions of risk likelihood and 

consequence are based on the Australian 

Standard on Risk Management AS/NZS 

4360:2004. The Commission’s Business 

Risk Matrix or Register has been developed 

from this, and subsequently forms the basis 

for the Commission’s Audit Committee, 

internal auditor and insurer to assess areas 

of risk exposure for the Commission and its 

ability to manage or mitigate business risks. 

The Commission’s internal audit conducted 

in May/June 2008 by Internal Auditors 

RSM Bird Cameron, focused on a business 

risk audit methodology. The internal 

audit confirmed the Commission’s risk 

management system was performing as 

intended, including its compliance with the 

Australian Standard on Risk Management 

(i.e. AS/NZS 4360:2004). 

48

The Goods Shed North is an 1880s heritage-listed building 

that will be refurbished with the aim of achieving 5 Star 

Green Star base building and integrated fit-out ratings. 

Risk Attestation 

I, Tony Arnel certify that the Plumbing 

Industry Commission of Victoria has risk 

management processes in place consistent 

with the Australian/New Zealand Risk 

Management Standard and an internal 

controls system is in place that enables the 

Executive Leadership Team to understand, 

manage and satisfactorily control risk 

exposures. The Audit Committee verifies 

that this assurance and that the risk profile 

of the Plumbing Industry Commission of 

Victoria has been critically reviewed within 

the last 12 months. 



Relocation to Goods Shed 

North 2009–10 

The Minister for Planning Justin Madden 

MLC announced on Wednesday 30 April 

2008 that the Building Commission and 

Plumbing Industry Commission will relocate 

to the Goods Shed North in Docklands 

in late 2009. The co-location of the two 

Commissions in the Goods Shed North, 

an Equiset development, will see them 

become co-tenants with VicUrban. All 

three statutory bodies will remain separate 

statutory entities. 

The Goods Shed North is an 1880s heritagelisted 

building that will be refurbished with 

the aim of achieving 5 Star Green Star base 

building and integrated fit-out ratings. 

The co-location of the Building Commission 

and Plumbing Industry Commission will 

aim to deliver: 

• a practical example of the Commissions’ 

commitment to innovation and 

sustainability in the building and 

plumbing industry and their preparedness 

to take a leading role in the sustainable 

refurbishment of an historical building in 

an area of urban renewal 

• Victorian Government accommodation 

triple bottom line objectives, including 

a minimum base building 5 Star Green 

Star rating 

• aligned building and plumbing industry 

regulatory programs and strategies, 

particularly in relation to sustainability 

and compliance 

• aligned operations, including a more 

effective deployment of shared corporate 

services for the two Commissions, 

which will yield further opportunity cost 

benefits and cost savings to Government 

• workplace efficiency and productivity 

gains, particularly in the area of time, 

travel and communications as a result 

of the head offices no longer being split 

between the CBD (Building Commission) 

and Camberwell (Plumbing Industry 

Commission) 

• gains in health and amenity for employees, 

as documented by research into welldesigned 

office environments achievable 

via the 5 Star Green Star rating. 


Audit Committee and annual 

internal audit for 2008 

The primary purpose of the Commission’s 

independent Audit Committee is to ensure 

the Commission has strong corporate 

governance and is perceived as open and 

accountable in its decision-making, the 

management of its operation and the 

stewardship of its funds. 

Major duties and responsibilities of the 

Audit Committee within its charter are: 

• to review the scope of the internal audit 

plan and program and the effectiveness 

of the function 

• discuss with the external auditor the 

scope and planning of the audit 

• critically analyse and follow up any 

internal or external audit report that 

raises significant issues relating to risk 

management, internal control, financial 

reporting and other accountability or 

governance issues 

• monitor the risk exposure of the 

Commission by determining if 

management has appropriate risk 

management processes and adequate 

management information systems 

• monitor ethical standards and related 

party transactions by overseeing the 

Commission’s performance against the 

Corporate Plan 

• review and recommend for adoption, 

the Commission’s draft annual financial 

report. 

The Audit Committee reviewed its 

charter in 2007–08 in order to ensure it 

met its duties and responsibilities as an 

independent advisory committee to the 

Plumbing Industry Commissioner. 

Members of the Commission’s Audit 

Committee during 2007–08 were: 

• Mr Ian Sargent, Chairperson – Chief 

Financial Officer, Victorian WorkCover 

Authority 

• Mr Jeff Webb – Director, Deloitte Touche 

Tohmatsu 

• Ms Carmel Coate – Executive Director, 

National Fire Industry Association and 

Audit Committee representative of the 

Plumbing Industry Advisory Council. 

The Audit Committee meets at least 

quarterly. During 2007–08, all members 

attended on a regular basis and remained 

independent of the Commission during the 

financial year, consistent with Guideline 3 

of the Financial Management Compliance 

Framework of the Department of Treasury 

and Finance. Meetings have included 

presentations by both the internal and 

external auditors and reviews of the 

Commission’s operations, five-year 

corporate plan, annual business plan and 

budget and risk management processes. 

Internal auditors RSM Bird Cameron 

(Chartered Accountants) completed 

the Commission’s annual internal audit 

in May/June 2008. RSM Bird Cameron 

reported no significant weaknesses 

in the internal financial controls and 

business risk management practices of 

the Commission. The 2008 internal audit 

examined the Commission’s assessment of 

responses to previous internal and external 

audit reports, business risk, project and 

contract management, financial systems 

and budgeting, the IT general control 

environment, and the development and 

implementation of the PUMA (Practitioner 

User Management Application) project. 

The level of non-audit services provided 

by the Commission’s external auditor, the 

Victorian Auditor-General, are compatible 

with maintaining auditor independence. 

Compliance with Financial 

Management Act 1994, 

Directions of the Minister for 

Finance, and Federal and State 

tax legislation 

Financial and tax compliance audits by 

the Commission’s internal auditors RSM 

Bird Cameron during 2007–08 found 

no significant non-compliance issues in 

relation to the Financial Management Act 

1994, the Directions of the Minister for 

Finance, or Federal and State Government 

tax legislation. 

50

Building Act 1993 

The Commission complies with the building 

maintenance requirements of the Building 

Act 1993. 

National Competition Policy 

The Commission complies with the 

principles of the National Competition 

Policy. Competitive neutrality seeks 

to enable fair competition between 

government and private sector businesses. 

Any advantages or disadvantages these 

businesses may experience, simply as a 

result of government ownership, should be 

neutralised. The Commission continues to 

implement and apply this principle in its 

business undertakings. 

Major Government contracts 

The Commission adheres to the 

Government’s policy of disclosing contracts 

greater than $10 million under the Financial 

Management Act 1994. In 2007–08, the 

Commission had no contracts above 

$10 million. 

Privacy 

The Commission is required to comply with 

the provisions of the Information Privacy 

Act 2000. This Act applies to the collection, 

keeping, use and release of personal 

information, and provides individuals with 

right of access to personal information held 

by the Commission and the right to require 

the Commission to correct this information. 

The Commission received no requests for 

access to personal information and no 

requests to correct information for the 

2007–08 year. 

The Privacy Statement and the Information 

Privacy Policy is available on the Commission’s 

website at www.pic.vic.gov.au or a request 

for the policy may be made in writing to 

the Plumbing Industry Commission, 450 

Burke Road, Camberwell, Victoria, 3124. 

Freedom of information 

The Freedom of Information Act 1982 gives 

the public the right to access documents 

held by the Commission. 

In 2007–08, the Commission received and 

processed 55 requests for information 

in accordance with the requirements of 

the Freedom of Information Act 1982. The 

requests were processed as follows: 

Not finalised as at 30 June 2007 3 

Total requests received 55 

Access granted in full 0 

Access granted in part 51 

Access denied in full 1 

No documents 2 

Act does not apply 1 

Not proceeded with 1 

Not finalised as at 30 June 2008 2 

There were no freedom of information 

reviews nor freedom of information appeals 

to Victorian Civil and Administrative 

Tribunal (VCAT). 

The Plumbing Industry Commissioner 

is the Principal Officer for freedom of 

information. All requests for information 

under the Freedom of Information Act 

1982 should be made in writing to: The 

Manager, Legal Services, Plumbing Industry 

Commission, 450 Burke Road, Camberwell, 

Victoria, 3124. The fee for a request is $22.70. 

Whistleblowers Protection Act 

The Whistleblowers Protection Act 2001 

facilitates the making of disclosures about 

improper conduct by public bodies and 

public officials and contains provisions for 

protection of those who come forward 

with a disclosure. It also provides for the 

investigation of disclosure that meets the 

definition, as detailed in the Act, of a public 

interest disclosure. 

The Ombudsman’s Office is responsible for 

providing guidance on whistleblower issues. 

The Office determines which disclosures 

warrant investigation. 

The Commission is committed to the 

aims and objectives of the Whistleblowers 

Protection Act 2001. It does not tolerate 

improper conduct by its employees, officers 

or members, or reprisals against those who 

come forward to disclose such conduct. 

The Commission supports the making of 

disclosures that reveal: 

• corrupt conduct 

• conduct involving a substantial 

mismanagement of public resources 

• conduct involving a substantial risk to 

public health and safety, and safety of the 

environment. 

The Commission will take all reasonable 

steps to protect people who make such 

disclosures from any detrimental action in 

reprisal for making the disclosures. 

The Commission conducts its 

investigations in accordance with the 

Ombudsman’s Guidelines produced under 

the Whistleblowers Protection Act 2001. 

For an online copy of the guidelines visit 

the Ombudsman Victoria website at 

www.ombudsman.vic.gov.au. There were 

no disclosures made or referred by the 

Ombudsman to the Commission during 

2007–08. 


Financial Report 2007–08 

Financial statements index 

Summary of significant changes to financial position 53 

Auditor-General’s report 54 

Accountable Officer’s and Chief Finance and Accounting Officer’s 

Declaration SD 4.2 (c) 55 

Operating statement SD 4.2 (b) 56 

Balance sheet SD 4.2 (b) 57 

Statement of recognised income and expense SD 4.2 (a) 58 

Cash flow statement SD 4.2 (b) 59 

Compliance statement for the Financial Management Compliance 

Framework SD 4.2 (c) 60 

Notes to and forming part of the financial statements 

1 Summary of accounting policies 60 

2 Revenue 65 

3 Cash assets 66 

4 Receivables 66 

5 Inventories 67 

6 Property, plant and equipment 67 

7 Intangible assets 68 

8 Payables 69 

9 Provision for employee entitlements 69 

10 Deferred revenue 70 

11 Equity and movements in equity 70 

12 Remuneration of auditors 72 

13 Contingent liabilities and contingent assets FRD 9A 72 

14 Commitments for expenditure 72 

15 Notes to cash flow statement 72 

16 Financial instruments 73 

17 Responsible persons FRD 21A 76 

18 Related party 76 

19 Events occurring after balance date 76 

52

Summary of significant changes 

to financial position 

Full disclosure of the Commission’s 

financial position is included in the financial 

statements and notes to the financial 

statements. 

In 2007–08, the Commission’s total revenue 

increased by $1,115,960 to $11,217,408, 

an increase of 11 per cent compared with 

2006–07. This was primarily due to: 

• increased revenue from the sale of 

an additional 22,018 Compliance 

Certificates compared with 2006–07 

• an increase of 2.4 per cent in Compliance 

Certificate fees from 1 July 2007 

• additional revenue of $405,000 from 

the collaborative sustainability projects 

received for the first time in 2007–08. 

Total operating expenses increased by 

$474,977 to $11,080,502, an increase of 

four per cent compared with 2006–07. 

The increase in the operating expenses 

was due to the net effect of: 

• increased salaries and related oncosts 

(including superannuation), 

reflecting increases under the Plumbing 

Industry Commission Agreement 2006 

(+$227,000) 

• increased general administration 

costs, primarily reflective of increases 

in corporate services charges from 

the Building Commission and 

implementation of the 2007–08 Annual 

Business Plan, including sustainability 

initiatives (+$434,000) 

• a decrease in IT expenses, reflecting 

the cost of updating the Commission’s 

information technology platform project 

completed in 2006–07 (–$475,000) 

• increased plumbing inspection and audits 

as a result of the increased number 

of Compliance Certificates lodged in 

2007–08 (+$185,000). 

The Commission’s net result for the period 

was $136,906, an increase of $640,983 

compared to 2006–07. This was consistent 

with the net effect of the movements in 

total revenue and operating expenses. 

Asset holdings increased to $11.8 million, 

which included a $1.0 million land 

revaluation as at 30 June 2008. 

The Commission continued to focus on a 

strong financial governance framework, 

supported by a proactive independent 

Internal Audit Committee. 

There have been no events subsequent to 

the balance date, which may have had an 

effect in subsequent years. 

Five-year summary of financial performance 

Consultancies 

2003–04 

$million 

Total value of business-related 

consultancies undertaken by the 

Commission was $655,302. These were 

directed towards such matters as: 

• IT project management and systems 

development 

• development and implementation 

of strategies for water saving in the 

plumbing industry. 

2004–05 

$million 

2005–06 

$million 

2006–07 

$million 


$million 

Total income $9.2 $8.8 $9.1 $10.1 $11.2 

Total expense $8.8 $8.5 $8.4 $10.6 $11.1 

Net result for the period $0.4 $0.3 $0.7 ($0.5) $0.1 

Total assets $7.9 $7.9 $10.1 $10.7 $11.8 

Total liabilities $3.5 $3.3 $3.5 $4.6 $4.6 

Consultancies over 

$100,000 

Description Total Outstanding 

commitments 

MS Integration IT development $174,785 Nil 

Mercator Consulting 

Development and implementation 

strategies for water and energy 

saving in the plumbing industry 

$176,447 Nil 

Consultancies under $100,000 No Total value 

23 $304,070 

PLUMBING INDUSTRY COMMISSION 2007–08 Financial REPORT 53

Auditor-General’s Report 

To the Commissioner of the Plumbing Industry Commission 

The Financial Report 

The accompanying financial report for the year ended 30 June 2008 

of the Plumbing Industry Commission which comprises an operating 

statement, balance sheet, statement of recognised income and 

expense, cash flow statement, a summary of significant accounting 

policies and other explanatory notes to and forming part of the 

financial report, and the accountable officer’s and chief finance & 

accountable officer’s declaration has been audited . 

The Commissioner’s Responsibility for the 

Financial Report 

The Commissioner of the Plumbing Industry Commission is 

responsible for the preparation and the fair presentation of the 

financial report in accordance with Australian Accounting Standards 

(including the Australian Accounting Interpretations) and the 

financial reporting requirements of the Financial Management Act 

1994. This responsibility includes: 

• establishing and maintaining internal controls relevant to the 

preparation and fair presentation of the financial report that is 

free from material misstatement, whether due to fraud or error 

• selecting and applying appropriate accounting policies 

• making accounting estimates that are reasonable in the 

circumstances. 

Auditor’s Responsibility 

As required by the Audit Act 1994, my responsibility is to express an 

opinion on the financial report based on the audit, which has been 

conducted in accordance with Australian Auditing Standards. These 

Standards require compliance with relevant ethical requirements 

relating to audit engagements and that the audit be planned and 

performed to obtain reasonable assurance whether the financial 

report is free from material misstatement . 

An audit involves performing procedures to obtain audit evidence 

about the amounts and disclosures in the financial report. The 

audit procedures selected depend on judgement, including the 

assessment of the risks of material misstatement of the financial 

report, whether due to fraud or error. In making those risk 

assessments, consideration is given to internal control relevant 

to the entity’s preparation and fair presentation of the financial 

report in order to design audit procedures that are appropriate in 

the circumstances, but not for the purpose of expressing an opinion 

on the effectiveness of the entity’s internal control. An audit also 

includes evaluating the appropriateness of the accounting policies 

used, and the reasonableness of accounting estimates made by the 

Commissioner, as well as evaluating the overall presentation of the 

financial report. 

I believe that the audit evidence obtained is sufficient and 

appropriate to provide a basis for my audit opinion. 

Matters Relating to the Electronic Presentation 

of the Audited Financial Report 

This auditor’s report relates to the financial statements published 

in both the annual report and on the website of the Plumbing 

Industry Commission for the year ended 30 June 2008. The 

Commissioner of the Plumbing Industry Commission is responsible 

for the integrity of the website. I have not been engaged to report 

on the integrity of the website. The auditor’s report refers only to 

the statements named above. An opinion is not provided on any 

other information which may have been hyperlinked to or from 

these statements. If users of this report are concerned with the 

inherent risks arising from electronic data communications, they 

are advised to refer to the hard copy of the audited financial report 

to confirm the information included in the audited financial report 

presented on the Plumbing Industry Commission website . 

Independence 

The Auditor-General’s independence is established by the Constitution 

Act 1975. The Auditor-General is not subject to direction by any 

person about the way in which his powers and responsibilities are 

to be exercised. In conducting the audit, the Auditor-General, his 

staff and delegates complied with all applicable independence 

requirements of the Australian accounting profession. 

Auditor’s Opinion 

In my opinion, the financial report presents fairly, in all material 

respects, the financial position of the Plumbing Industry 

Commission as at 30 June 2008 and its financial performance 

and cash flows for the year then ended in accordance with 

applicable Australian Accounting Standards (including the 

Australian Accounting Interpretations), and the financial reporting 

requirements of the Financial Management Act 1994. 

DDR Pearson 

Auditor-General 

Melbourne 

30 September 2008 

54

Accountable Officer’s and Chief Finance and 

Accounting Officer’s Declaration 

For the year ended 30 June 2008 

We certify that the attached financial statements for the Plumbing Industry Commission 

have been prepared in accordance with Part 4.2 of the Standing Directions of the Minister 

for Finance under the Financial Management Act 1994, applicable Financial Reporting 

Directions, Australian Accounting Standards and other mandatory professional reporting 

requirements. 

We further state that, in our opinion, the information set out in the operating statement, 

balance sheet, statement of recognised income and expense, cash flow statement and 

notes to and forming part of the financial reports, presents fairly the financial transactions 

during the year ended 30 June 2008 and financial position of the Plumbing Industry 

Commission as at 30 June 2008. 

We are not aware of any circumstance, which would render any particulars included in the 

financial report to be misleading or inaccurate. 

We authorise the attached financial report for issue on 17 September 2008. 


Plumbing Industry Commissioner/Accountable Officer 

Melbourne 


Paul Crapper 

Chief Finance Officer and General Manager Corporate Services/ 

Chief Finance and Accounting Officer 

Melbourne 



Operating statement 

For the financial year ended 30 June 2008 

2008 2007 

Notes $ $ 

INCOME 

Revenue 

Fee income 

Registrations 871,996 775,626 

Licences 2,108,270 2,164,446 

Certificates of compliance 6,805,307 6,268,439 

Special audits and inspections 191,137 86,013 

Examinations 77,585 84,328 

Other fee income 73,323 65,370 

Total fee income 10,127,618 9,444,222 

Other revenue 

Sale of publications 94,052 83,569 

Rent received – 34,650 

Interest income 254,999 252,779 

Other income 2(a) 740,739 286,228 

Total other revenue 1,089,790 657,226 

Total income 11,217,408 10,101,448 

Expenses 

Employee benefits costs 4,290,840 4,063,378 

Grants and other payments 50,000 – 

Advertising and promotion 13,812 429,192 

Audit, legal and consultants fees 564,061 619,743 

Cost of publication sales 79,771 59,557 

Depreciation and amortisation 6(a) 336,744 287,574 

IT expenses 826,537 1,301,041 

Education and examination expense 52,971 238,642 

General administration costs 1,489,387 456,336 

Office occupancy costs 132,275 138,902 

Office rent 26,285 26,382 

Postages 58,002 76,292 

Plumbing inspections and audits 2,310,146 2,125,350 

Printing and stationery 210,186 238,081 

Telephone 203,704 221,206 

Travelling and motor vehicle expenses 359,229 289,736 

Loss from sale of fixed assets 76,552 34,113 

Total expenses 11,080,502 10,605,525 

Net result for the period 136,906 (504,077) 

The accompanying notes form an integral part of the financial statements. 

56

Balance sheet 

As at 30 June 2008 

Notes 2008 2007 

$ $ 

Current assets 

Cash and cash equivalents 3 3,839,223 3,901,175 

Receivables 4 1,002,044 853,672 

Inventories 5 28,253 46,997 

Prepayments 2,820 – 

Total current assets 4,872,340 4,801,844 

Non-current assets 

Plant and equipment 6 6,769,301 5,807,731 

Intangibles 7 143,832 113,600 

Total non-current assets 6,913,133 5,921,331 

Total assets 11,785,473 10,723,175 

Current liabilities 

Payables 8 1,229,633 1,403,608 

Provisions for employee entitlements 9 804,702 736,842 

Deferred revenue 10 2,528,081 2,456,640 

Total current liabilities 4,562,416 4,597,090 

Non-current liabilities 

Provision for employee entitlements 9 7,284 34,214 

Total non-current liabilities 7,284 34,214 

Total liabilities 4,569,700 4,631,304 

Net assets 7,215,773 6,091,871 

Equity 

Contributed capital 11(a) 2,790,128 2,790,128 

Reserves 11(b) 3,488,961 2,460,735 

Accumulated surplus 11(c) 936,684 841,008 

Total equity 7,215,773 6,091,871 



STATEMENT OF RECOGNISED INCOME AND EXPENSE 


Notes 2008 2007 

$ $ 

Revaluation increment recognised directly in equity 987,000 – 

Net result for the year 11(c) 136,906 (504,077) 

Total recognised income and expense for the year 1,123,906 (504,077) 


58

CASH FLOW STATEMENT 



Notes $ $ 

Cash flows from operating activities 

Receipts from customers 11,647,940 10,818,961 

Interest received 249,766 268,865 

Payments to suppliers and employees (11,487,650) (10,218,200) 

Net cash flows from/(used in) operating activities 15(b) 410,056 869,626 

Cash flows from investing activities 

Payments for purchase of property, plant and equipment (733,026) (1,053,812) 

Proceeds from sale of property, plant and equipment 261,017 414,969 

Net cash flows from/(used in) investing activities (472,009) (638,843) 

Net increase/(decrease) in cash and cash equivalents (61,953) 230,783 

Beginning cash and cash equivalents 3,901,175 3,670,392 

Closing cash and cash equivalents 15(a) 3,839,223 3,901,175 



NOTES TO THE FINANCIAL STATEMENTS 


1 Summary of accounting policies 

1.1 Statement of compliance 

The financial report is a general purpose financial report of the Plumbing Industry Commission which has been prepared on an accrual 

basis in accordance with the Financial Management Act 1994, applicable Australian Accounting Standards (AAS) issued by the Australian 

Accounting Standards Board (AASB), AAS 29 Financial Reporting by government departments, Interpretations and other mandatory 

requirements. 

The financial report also complies with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, 

and relevant Standing Directions (SDs) authorised by the Minister for Finance. 

1.2 Basis of preparation 

The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial 

instruments. Cost is based on fair values of the consideration given in exchange for assets. 

In the application of AAS, management is required to make judgements, estimates and assumptions about carrying values of assets and 

liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience 

and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the 

judgements. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period 

in which the estimate is revised if the revision affects only that period or in the period of revision and future periods if the revision affects 

both current and future periods. 

Judgements made by management in the application of A-IFRS that have significant effects on the financial statements and estimates with 

a significant risk of material adjustments in the next year are disclosed throughout the notes of the financial statements. 

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concept of 

relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. 

The Commission has no controlled entities, however, the following Trust is included in the reporting entity: 

The Plumbing Industry Commission Trust No 1 is a trust established by the Plumbing Industry Commission and it is administered by 

independent trustees. A separate reserve has been established to recognise the amounts administered by the independent trustees under 

the Trust Deed (See note 11(b)). 

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2008 and the 

comparative information in these financial statements for the year ended 30 June 2007. 

1.3 Reporting entity 

The financial report covers the Plumbing Industry Commission as an individual reporting entity. The Commission is a self-funded statutory 

authority established under the Building Act 1993. Its principal address is: 

Plumbing Industry Commission 

450 Burke Road 

Camberwell, VIC, 3124 

1.4 Revenue recognition 

(a) Registration and licence fees 

The fees brought to account equate with that portion appropriate to the current financial period. The proportion of these fees received 

relating to periods beyond the current financial period have been deferred on a pro rata basis and included in current liabilities. 

(b) Registration fees currently being received by the Commission are for a triennium ending for three years from the date paid. 

(c) Licence fees received by the Commission are for up to 12 months, paid in advance. 

(d) Other fees and services 

All other fees and services are recognised as revenues when services are provided. 

60



1.5 Depreciation and amortisation 

Depreciation is calculated on a straight-line basis to write off the net cost of property (excluding land) over its expected useful life to the 

Commission. Estimates of the remaining useful lives for all assets are reviewed annually. The expected useful lives for the financial years 

ended 30 June 2008 and 30 June 2007 are as follows: 

Rate 

Useful life 

Motor vehicles 20% 5 years 

Furniture and fittings 10% 10 years 

IT 33.33% 3 years 

Office machines, equipment and intangibles 33.33% 3 years 

Buildings 2.50% 40 years 

1.6 Employee benefits (excluding superannuation) 

Employee benefits expense include all costs related to employment including wages and salaries, leave entitlements, staff contract bonuses, 

payroll tax, work cover and redundancy payments. These are recognised when incurred. 

1.7 Superannuation 

The Commission contributes to the Government Superannuation Schemes – revised and new, Vic Super Pty Ltd, Vic Super Top Up, C+ Bus 

Superannuation Fund, and CPSL Master Fund. All contributions up to the 30 June 2008 were paid prior to the reporting date. 

Total contributions of $364,548 (2007: $191,773) were made by the Commission to these funds during the reporting period. 

The basis for calculating superannuation contributions payable by the Commission is determined by the various schemes. 

The superannuation contributions for the reporting period are included as part of salaries and associated costs in the operating statement 

of the Commission. 

Defined contribution plans 

Contributions to defined contribution superannuation plans are expensed when incurred. 

Defined benefit plans 

The amount charged to the operating statement in respect of defined benefit plans superannuation represents the contribution made by 

the Commission to the superannuation plan in respect to the current services of current Commission staff. Superannuation contributions 

are made to the plans based on the relevant rules of each plan. 

The Commission does not recognise any defined benefit liability in respect of the superannuation plan because the Commission has no 

legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as 

they fall due. The Department of Treasury and Finance administers and discloses the State’s defined benefit liabilities in its financial report. 

No loans have been made from any of these funds to the Commission. 

1.8 Impairment of assets 

All assets are assessed annually for indicators except for: 

• inventories 

• financial assets 

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. 

Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the operating statement except 

to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset. 

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. 

Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash 

flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the 

future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. 




1.9 Cash assets and cash equivalents 

Cash assets comprise cash on hand, cash in banks, and term deposits which are readily convertible to cash. 

1.10 Investments 

Investments, generally comprised as amounts on deposit, are brought to account at cost. Interest revenue is recognised when the interest 

is earned. 

1.11 Receivables 

Trade debtors are carried at amounts receivable. The collectability of debts is assessed on an ongoing basis and specific provision is made 

for any doubtful accounts, where there is objective evidence that the debts will not be collected. Bad debts are written off when identified. 

1.12 Financial assets 

The Commission classifies its investments as held to maturity. The classification depends on the purpose for which the investments were 

acquired. Management determines the classification of its investments at initial recognition. The Commission assesses at each balance 

date whether the financial assets or group of financial assets are impaired. 

Held to maturity investments 

Where the Commission has the positive intent and ability to hold investments to maturity, they are stated at amortised cost less 

impairment losses. 

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the 

relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the 

financial asset, or, where appropriate, a shorter period. 

1.13 Inventories 

Stocks on hand represent publications for re-sale and are stated at the lower of cost or net realisable value. 

1.14 Property, plant and equipment 

(a) Revaluations of non-current assets 

Subsequent to initial recognition as assets, non-current physical assets, other than plant and equipment are measured at fair value. Plant 

and equipment are measured at cost. Revaluations are made with sufficient regularity to ensure that the carrying amount of each asset 

does not differ materially from its fair value at the reporting date. 

Valuations of freehold land and buildings are based on independent valuations carried out by P I Cramer, FAPI, AREI based on current 

market valuations. All freehold land and buildings were revalued as at 30 June 2006. 

Revaluations by independent assessments are conducted at least every three years. 

Revaluation increments are credited to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation 

decrement in respect of that class of asset previously recognised as an expense in net results, the increment is recognised immediately as 

revenue in the net result. 

Revaluation decrements are recognised as an expense unless there is an existing revaluation reserve in respect of that class of assets that 

have been revalued. In those circumstances, the decrements are offset against the revaluation reserve. 

(b) Acquisition of assets 

The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up or liabilities 

undertaken at the date of acquisition plus incidental costs directly attributed to the acquisition. 

It is the policy of the Commission to write off as current expenditure all items of a unit value less than $200. 

62



1.15 Leasehold improvements 

The cost of improvements to or on leasehold properties is depreciated over the unexpired period of the lease or the estimated useful life of 

the improvement to the Commission, whichever is the shorter. 

Leasehold improvements held at the reporting date are being depreciated over two years. 

1.16 Tax status 

The activities of the Commission are exempt from federal income tax and the State’s Tax Equivalent system. The Commission is registered 

for GST and payroll tax. 

1.17 Creditors and accruals 

Creditors and accrued expenses represent liabilities for goods and services provided to the Commission prior to balance date and which are 

unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. 

1.18 Employee benefits 

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and contract bonuses 

when it is probable that settlement will be required and they are capable of being measured reliably. 

Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the 

remuneration rate expected to apply at the time of settlement. 

Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value 

of the estimated future cash outflows to be made by the Plumbing Industry Commission in respect of services provided by employees up 

to the reporting date. 

Consideration is given, when assessing expected future payments, to expected future wage and salary levels, experience of employee 

departures and periods of service. 

Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity that 

match, as closely as possible, the estimated cash outflows. 

1.19 Plumbing Industry Commission (PIC) Trust No 1 

The purpose of the Trust includes awarding of scholarships, awards and the promotion of better plumbing standards. An initiative has been 

created to increase the numbers of plumbing apprenticeships, retraining of existing plumbers, development of specific training resources 

and to provide funding for research for 5 Star water and energy savings required in the domestic and commercial building arena. A separate 

reserve has been established for amounts that can be paid at the discretion of the Trust’s independent trustees. 

1.20 Rounding of amounts 

Amounts in the financial report have been rounded to the nearest dollar. 

1.21 Goods and services tax 

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except: 

• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an 

asset or as part of an item of expense; or 

• for receivables and payables which are recognised inclusive of GST. 

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows 

are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities 

which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. 




1.22 New accounting standards and interpretations 

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2008 reporting period. 

The Department of Treasury and Finance assesses the impact of these new standards and advises the Commission of their applicability 

and early adoption where applicable. 

As at 30 June 2008, the following standards and interpretations (applicable to the Commission) had been issued but were not mandatory 

for financial years ending 30 June 2008. The Plumbing Industry Commission has not, and does not intend to, adopt these standards early. 

Standard/Interpretation Summary Applicable for 

annual reporting 

periods beginning 

or ending on 

Interpretation 12 Service 

Concession Arrangements. 

AASB 2007-2 Amendments 

to Australian Accounting 

Standards arising from AASB 

Interpretation 12. 

Revised AASB 1004 

Contributions 

AASB 1050 Administered 

Items 

AASB 1051 Land Under 

Roads 

AASB 1052 Disaggregated 

Disclosures 

AASB 2007-9 Amendments 

to Australian Accounting 

Standards arising from the 

review of AAS 27, AAS 29 and 

AAS 31 

AASB approved an Australian Interpretation 12, equivalent to 

IFRIC 12, applying to private sector operators, but explicitly 

excludes accounting for public sector grantors. 

Amendments arise from the release in February 2007 of 

Interpretation 12 Service Concession Arrangements. 

AASB decided to relocate requirements on contributions from 

AAS 27, 29 and 31, substantively unamended, into AASB 1004 

as part of its short-term review of AAS 27, AAS 29, and AAS 31. 

As part of the short-term review of AAS 27, AAS 29, and 

AAS 31, AASB decided to relocate the requirements for the 

disclosure of administered items from AAS 29, substantively 

unamended (with some exception as noted in Appendix A) 

into a new topic-based standard AASB 1050. 

The new pronouncement AASB 1051 Land Under Roads 

provides the option to recognise or not recognise land under 

roads acquired before the end of the first reporting period 

ending on or after 31 December 2007. Land under roads 

acquired after 31 December 2007 should be accounted for 

following requirements of AASB 116 Property, Plant and 

Equipment. 

The State is yet to decide whether to change its policy. Until a 

conclusion is reached, the current default position is that land 

under roads will not be recognised. 

AASB decided to relocate requirements relating to reporting 

of disaggregated information from AAS 27 and AAS 29 into 

AASB 1052, a new topic-based standard, as part of its shortterm 

review of AAS 27, AAS 29 and AAS 31. 

An accompanying amendment standard to amend existing 

accounting standards as part of the short-term review of AAS 

27, AAS 29 and AAS 31 in December 2007. 

Beginning 1 July 

2008 



Beginning 1 Jul 










Impact on financial 

statements 

The impact of any 

changes that may be 

required cannot be 

reliably estimated and 

is not disclosed in the 

financial report. 

As above. 

Impact expected to be 

insignificant. 



Impact is being 

evaluated. 





64



Standard/Interpretation Summary Applicable for 

annual reporting 

periods beginning 

or ending on 

Impact on financial 

statements 

Revised Interpretation 1038 

Contributions by Owners Made to 

Wholly-Owned Public Sector Entities 

Editorial amendments to Interpretation 1038 due 

to changes to AASB 1004. 





AASB 8 Operating Segments. Supersedes AASB 114 Segment Reporting. Beginning 1 Jan 

2009 

Not applicable. 

AASB 2007-3 Amendments to Australian 

Accounting Standards arising from AASB 

8 [AASB 5, AASB 6, AASB 102, AASB 107, 

AASB 119, AASB 127, AASB 134, AASB 

136, AASB 1023 and AASB 1038]. 

An accompanying amending standard, also 

introduced consequential amendments into other 

Standards. 

Beginning 1 Jan 

2009 





123 [AASB 1, AASB 101, AASB 107, 

AASB 111, AASB 116 & AASB 138 and 

Interpretations 1 & 12] 

Option to expense borrowing cost related to a 

qualifying asset had been removed. Entities are 

now required to capitalise borrowing costs relevant 

to qualifying assets. 


2009 

All Australian 

government 

jurisdictions are 

currently still 

actively pursuing 

an exemption for 

government from 

capitalising borrowing 

costs. 



101 

Editorial amendments to Australian Accounting 

Standards to align with IFRS terminology. 


2009 



2 Components of revenue 

(a) Other income 

Other income is comprised of: 


$ $ 

Recovery – court and hearing costs 79,038 80,802 

Modification fees 25,618 26,224 

Infringement notices 13,418 37,376 

Royalties – 8,444 

Work and family targeted grant – Industrial Relations Vic. – 40,000 

Government grants – PIC projects 405,000 – 

Employee MV contributions 37,873 33,755 

Miscellaneous revenue 179,792 59,627 

740,739 286,228 

(b) Proceeds from sale of fixed assets 

A loss on sale of fixed assets of $76,552 (2007: $34,113) resulted from the proceeds of $315,323 (2007: $414,969) after deducting the 

equipment’s written down value of $391,875 (2007: $449,082). 




3 Cash assets 


$ $ 

Cash at bank and on hand 742,611 215,399 

Cash at bank and on hand – PIC Trust No 1 reserve 51,612 40,776 

Short-term deposits 3,045,000 3,645,000 

3,839,223 3,901,175 

(a) Short-term deposits 


$ $ 

Treasury Corporation of Victoria 2,400,000 3,000,000 

Commonwealth Bank 400,000 400,000 

Treasury Corporation of Victoria – PIC Trust No 1 reserve 245,000 245,000 

3,045,000 3,645,000 

Term deposits are held on account of: 

Development reserve 68,632 68,634 

General investments 2,731,368 3,331,366 

Plumbing Industry Commission (PIC) Trust No 1 reserve 245,000 245,000 

3,045,000 3,645,000 

4 Receivables 


$ $ 

Debtors 473,043 442,641 

Less: Provision for doubtful debts (10,000) (10,000) 

463,043 432,641 

Other debtors 539,001 421,031 

1,002,044 853,672 

Debtors relates to the revenue from the sale of Certificates of Compliance that are unpaid at that date. 

66



(a) Movement in the allowance for doubtful debts 


$ $ 

Balance at beginning of the year (10,000) (10,000) 

Amounts written off during the year – – 

Amounts recovered during the year – – 

Increase/(decrease) in allowance recognised in operating statement – – 

Balance at the end of the year (10,000) (10,000) 

(b) Ageing analysis of receivables 

Refer note 16 for the ageing of receivables. 

(c) Nature and extent of risk arising from receivables 

Refer note 16 for the nature and extent of risks arising from receivables. 

5 Inventories 


$ $ 

Publications at cost 28,253 46,997 

28,253 46,997 

6 Property, plant and equipment 

Classification by public administration purpose group – carrying amounts 


$ $ 

Sub-classification by nature 

Freehold land at fair value 4,837,000 3,850,000 

Net carrying value of freehold land 4,837,000 3,850,000 

Buildings at fair value 

Fair value – independent valuation 30 June 2006 970,000 970,000 

At cost 122,819 38,957 

Less: Accumulated depreciation (89,554) (63,207) 

Net carrying value of buildings at fair value 1,003,265 945,750 

Plant, equipment and vehicles 

Cost 1,440,144 2,248,793 

Less: Accumulated depreciation (511,108) (1,236,812) 

Net carrying value of plant, equipment and vehicles 929,036 1,011,981 

Net carrying value of property, plant and equipment 6,769,301 5,807,731 

PLUMBING INDUSTRY COMMISSION 2007–08 Financial REPORT 

67



(a) Property, plant and equipment – movement by class of assets 

Freehold land Buildings at Plant, equipment Total 

at fair value fair value and vehicles 

2008 2007 2008 2007 2008 2007 2008 2007 

$ $ $ $ $ $ $ $ 

Opening balance 3,850,000 3,850,000 945,750 970,000 1,011,981 784,175 5,807,731 5,604,175 

Additions – – 83,862 – 618,930 940,213 702,792 940,213 

Net revaluation increments/ 

(decrements) 987,000 – – – – – 987,000 – 

Disposals – – – – (391,477) (449,083) (391,477) (449,083) 

Depreciation – – (26,347) (24,250) (310,398) (263,324) (336,745) (287,574) 

Closing balance 4,837,000 3,850,000 1,003,265 945,750 929,036 1,011,981 6,769,301 5,807,731 

At 30 June 2008, indices issued by the Valuer-General’s Office have been used to assess that the carrying amount of the freehold land is at fair value. 

7 Intangible assets 


$ $ 

Computer software 

Cost 113,600 113,600 

Less: Accumulated amortisation – – 

Written-down value 113,600 113,600 

Work in progress 30,232 – 

Total computer software 143,832 113,600 

(a) Intangible assets – movement by class of assets 


$ $ 

Computer software 

Opening balance 113,600 113,600 

Additions 30,232 – 

Disposals – – 

Closing balance 143,832 113,600 

68



8 Payables 


$ $ 

Trade creditors 999,815 1,300,352 

Other creditors and accruals 229,818 103,256 

1,229,633 1,403,608 

Terms and conditions of payables vary according to particular agreements with these parties. The average credit terms for payables are 

14 days and the balance is non-interest bearing. 

(a) Maturity analysis of payables 

Refer note 16 for the ageing analysis of payables. 

(b) Nature and extent of risk arising from payables 

Refer note 16 for the nature and extent of risks arising from payables. 

9 Provision for employee entitlements 


$ $ 

Current liability 

Unconditional long service leave entitlements 368,654 358,765 

Annual leave entitlements 370,992 308,077 

Provision for contract bonuses 65,056 70,000 

Total current liability 804,702 736,842 

Non-current liabilities 

Unconditional long service leave entitlements 7,284 34,214 

Total non-current liability 7,284 34,214 

Total provisions 811,986 771,056 

Annual leave entitlements 

The amounts classified as current are based on entitlements that are payable upon termination and cannot be deferred by the Plumbing 

Industry Commission. The amount expected to be paid within the next 12 months is $370,992 (2007: $308,077). 

Long service leave 

The amounts classified as current are based on entitlements that are payable upon termination and cannot be deferred by the Plumbing 

Industry Commission. The amount expected to be paid within the next 12 months is $50,000 (2007: $50,000). 

PLUMBING INDUSTRY COMMISSION 2007–08 Financial REPORT 

69



(a) Employee benefits 


$ $ 

The aggregate employee entitlements liability recognised and included 

in the financial statements is as follows: 

Provision for employee entitlements: 

Current (note 9) 804,702 736,842 

Non-current (note 9) 7,284 34,214 

811,986 771,056 

10 Deferred revenue 

Deferred revenue comprises: 


$ $ 

Licence fees received in advance 1,391,100 1,174,419 

Registrations received in advance 1,136,981 1,282,221 

2,528,081 2,456,640 

11 Equity and movements in equity 


$ $ 

(a) Contributed Capital 

Balance 1 July 2,790,128 2,790,128 

Balance 30 June 2,790,128 2,790,128 

(b) Reserves 

Asset revaluation reserve 3,082,231 2,095,231 

Development reserve 68,634 68,634 

Plumbing Industry Commission (PIC) Trust No 1 reserve 338,096 296,870 

3,488,961 2,460,735 

70




$ $ 

Movements 

(i) Asset revaluation reserve 

Balance 1 July 2,095,231 2,095,231 

Revaluation increments/(decrements) 987,000 – 

Balance 30 June 3,082,231 2,095,231 

The asset revaluation reserve is used to record increments and decrements on the revaluation of 

non-current assets, as described in accounting policy note 1.3(a). 

(ii) Development reserve 

Balance 1 July 68,634 68,634 

Balance 30 June 68,634 68,634 

The development reserve represents funds set aside to research and develop new plumbing 

practices and standards. 

(iii) Plumbing Industry Commission (PIC) Trust No 1 reserve 

Balance 1 July 296,870 286,884 

Transfer from accumulated surplus 41,226 9,986 

Over provision 30.6.07 _ _ 

Balance 30 June 338,096 296,870 

The Plumbing Industry Commission (PIC) Trust No 1 reserve is restricted funds to be used for 

purposes as set out in the Trust Deed and as determined by the independent trustees. 

(c) Accumulated surplus 

Accumulated surplus at the beginning of the financial year 841,004 1,355,071 

Net result for the reporting year 136,906 (504,077) 

Transfer to PIC Trust No 1 reserve (41,226) (9,986) 

Accumulated surplus at the end of the financial year 936,684 841,008 

(d) Total equity at the beginning of the financial year 6,091,871 6,595,948 

Net result for year 136,906 (504,077) 

Revaluation increment 987,000 - 

Total equity at the end of the financial year 7,215,777 6,091,871 




12 Remuneration of auditors 


$ $ 

Audit fees paid or payable to the Victorian Auditor-General’s 

Office for audit of the Commission’s financial report: 

Paid as at 30 June 10,800 – 

Payable as at 30 June – 8,600 

13 Contingent liabilities and contingent assets 

The Commission is not aware of any contingent liability or contingent assets as at 30 June 2008. 

14 Commitments for expenditure 

As at 30 June 2008 there were no commitments by the Commission in respect of any capital expenditure contracted but not provided for 

in the accounts. 

The Commission occupies premises in Camberwell under a one year option of a lease exercised on 1 November 2007. 

The committed expense in connection with the lease is as follows: 


$ $ 

Payable within one year 9,200 9,200 

Later than one year but not later than five years – – 

9,200 9,200 

15 Notes to cash flow statement 

(a) Cash and cash equivalents 


$ $ 

Cash and cash equivalents comprise the following items as disclosed in the balance sheet: 

Cash 794,223 256,175 

Short-term deposits 3,045,000 3,645,000 

Total cash and cash equivalents 3,839,223 3,901,175 

72



(b) Reconciliation of net results for the period to net cash flows from ordinary activities: 


$ $ 

Net results for the period 136,906 (504,077) 

Depreciation and amortisation 336,744 287,574 

Net loss on sale of non-current assets 76,552 34,113 

Change in operating assets and liabilities 

Increase/(decrease) fees paid in advance 71,441 371,210 

Increase/(decrease) in creditors (173,975) 680,427 

Increase/(decrease) in employee entitlements 40,930 131,304 

Decrease/(increase) in interest accrued (5,233) 16,086 

Decrease/(increase) in prepayments and other debtors (92,053) (135,072) 

Decrease/(increase) in inventories 18,744 (11,939) 

Net cash inflow from operating activities 410,056 869,626 

16 Financial instruments 

(a) Significant accounting policies 

The Commission’s activities expose it primarily to financial risks of changes in interest rates. The Commission does not enter into derivative 

financial instruments to manage exposure to interest rate risk. 

The policies for managing each of these risks are summarised below. 

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the 

basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are 

disclosed in note 1 to the financial statements. 

(b) Categorisation of financial instruments 

Note Category Carrying amount Carrying amount 


Financial assets 

Cash and equivalents 15(a) n/a 3,839,223 3,901,175 

Receivables 4 Loans and receivables (at amortised cost) 776,926 853,672 

Financial liabilities 

Payables and other liabilities 8 Financial liabilities measured at amortised cost 1,229,632 1,403,608 

Note: 

(l) The amount of receivables disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). 

(c) Interest risk 

The Commission’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial instrument is set 

out on the following page. 




(d) Credit risk exposures 

The credit risk on financial assets of the Commission which have been recognised on the balance sheet, is the carrying amount, net of any 

provision for doubtful debts. The Commission minimises concentrations of credit risk by undertaking transactions with unrelated debtors. 

The Commission is not materially exposed to any individual debtor. 

Credit risk arises from the financial assets of the Commission, which comprise cash and cash equivalents, trade and other receivables and 

other financial assets. Exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in 

financial loss to the Commission. Credit risk is measured at fair value and is monitored on a regular basis. 

The carrying amount of financial assets recorded in the Financial Report, net of any allowances for losses, represents the Commission’s 

maximum exposure to credit risk without taking account of the value of any collateral obtained. 

Currently the Commission does not hold any collateral as security nor credit enhancements relating to any of its financial assets. 

As at the reporting date, there is no event to indicate that any of the financial assets were impaired. There are no financial assets that 

have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts 

as indicated. 

Interest rate exposure 

Past due but not impaired 

Weighted 

average 

effective 

interest 

rate 

Carrying 

amount 

Fixed 

interest 

rate 

Variable 

interest 

rate 

Noninterest 

bearing 

Not 

past due 

and not 

impaired 

Less than 

1 month 

1–3 

months 

3 months 

– 1 year 

1–5 years Impaired 

financial 

assets 

% $ $ $ $ $ $ $ $ $ $ 


Cash and cash 

equivalents 

6.75% 794,223 – 790,523 3,700 – – – – – – 

Receivables – 776,926 – – 776,926 773,773 2,453 (22) 721 – 

Other financial assets 6.77% 3,045,000 3,045,000 – – – – – – – – 

2007 

Cash and cash 

equivalents 

4.25% 256,175 – 252,625 3,550 – – – – – – 

Receivables – 853,672 – – 853,672 805,561 26,453 – 21,658 – – 

Other financial assets (1) 6.4% 3,645,000 3,645,000 – – – – – – – – 

Note: (1) Ageing analysis of financial assets excludes the types of statutory financial assets (e.g. amounts owing from Victorian Government and GST input tax credit 

recoverable). 

(e) Liquidity risk 

Liquidity risk arises when the Commission is unable to meet its financial obligations as they fall due. The Commission operates under the 

Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, make payments within 

30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to 

ensure adequate holding of high-quality liquid assets. 

The Commission’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. 

74



The following table discloses the contractual maturity analysis for the Commission’s financial liabilities 

Interest rate exposure 

Maturity dates(i) 

Weighted 

average 

effective 

interest 

rate 

Carrying 

amount 

Fixed 

interest 

rate 

Variable 

interest 

rate 

Noninterest 

bearing 

Nominal 

amount(1) 

Less than 1 

month 

1–3 

months 

3 months 

– 1 year 

1–5 years 

% $ $ $ $ $ $ $ $ $ 


Payables and other liabilities – 1,229,632 – – 1,229,632 – 1,219,095 5,187 5,350 – 

2007 

Payables and other liabilities – 1,403,608 – – 1,403,608 – 1,334,354 68,561 693 – 

Note: (1) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities. 

(f) Market risk 

The Commission’s exposure to market risk are primarily through interest rate risk. Exposure to interest rate risk is insignificant and might 

arise primarily through the Commission’s cash and cash equivalents and other financial assets. Minimisation of risk is achieved by mainly 

undertaking fixed rate of non-interest bearing financial instruments. 

Sensitivity disclosure analysis 

Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the 

financial markets, the Commission believes the following movements are ‘reasonably possible’ over the next 12 months (Base rates are 

sourced from Reserve Bank of Australia): 

- A parallel shift of +2 per cent and –2 per cent in market interest rates (AUD) from year-end rates of 6.75 per cent for cash and cash 

equivalents, and 6.77 per cent for other financial assets. 

The following table discloses the impact on net operating result and equity for each category for financial instrument held by the 

Department at year-end, if the above movements were to occur. 

Interest rate risk 

–2% (200 basis points) +2% (200 basis points) 

2008 Carrying amount Net result Equity Net result Equity 

Financial assets: 

Cash and cash equivalents 794,223 (15,884) _ 15,884 _ 

Other financial assets 3,045,000 (60,900) _ 60,900 _ 

Total increase/(decrease) 3,839,223 (76,784) _ 76,784 _ 

The net fair value of on-balance sheet assets is not materially different to the carrying amount of the financial assets. 




17 Responsible persons 

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following 

disclosures are made regarding responsible persons for the reporting period. 

(a) Names 

The persons who held the positions of Minister and Accountable Officer in the Commission are as follows: 

The Hon. Justin Madden MLC Minister for Planning 

Tony Arnel – Plumbing Industry Commissioner/Accountable Officer 

(b) Remuneration 

Amounts relating to Mr Tony Arnel are reported in the financial statements of the Building Commission. 

Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. 

(c) Other transactions 

Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there 

are no matters to report. 

(d) Executives of the Commission received remuneration in excess of $100,000 per annum in the following remuneration ranges: 


$100,000–$109,999 1 1 

$110,000–$119,999 - - 

$120,000–$129,999 - 2 

$130,000–$139,999 1 1 

Total numbers 2 4 

Total amount $240,794 $483,871 

18 Related party 

As a result of Australian Accounting Standard AASB 124, the Building Commission is considered a related party to the Plumbing Industry 

Commission and $529,969 (2007: $305,532) was paid on normal business terms to the Building Commission during 2007–08 including 

an amount of $65,532 (2007: $65,532) as reimbursement for the time the accountable officer spent on Plumbing Industry Commission 

business activities. 

There were no other related party transactions. 

19 Events occurring after balance date 

No events occurred after balance date which would render the financial statements misleading or inaccurate. 

76

Appendix 1 


Council members as at 30 June 2008 

Meetings 

attended 

(9 total) 

Chair, Doug McClusky, Manager, Plumbing Trades Employees Union (CEPU) 8 

Deputy Chair, Carmel Coate, Executive Director, National Fire Industry Association 7 

Tony Arnel, Commissioner, Plumbing Industry Commission 7 

Luke Behnche, Senior Curriculum Officer, Skills Victoria 3 

Ray Herbert, Executive Director, Master Plumbers and Mechanical Services Association of Australia 4 

Glen Menzies, Plumbing Trades Employees Union (CEPU) 7 

Paddy McCrudden, Victorian Co-ordinator, Cbus Superannuation 8 

Alan Pears, Minister’s representative 3 

Earl Setches, Victorian Branch Secretary, Plumbing Trades Employees Union (CEPU) 5 

Stephen Brook, Executive Manager, Gas Installation and Appliance Safety, Energy Safe Victoria 6 

Julie Psaralogos*, Consumer representative 1 

David Eynon, Air Conditioning and Mechanical Contractors Association of Victoria Ltd (AMCA) 5 

Anne Barker, Managing Director, City West Water 7 

*Resigned 13 July 2007 


Glossary of terms 


A regulatory requirement for new homes 

and apartments, and for renovations and 

relocations of existing homes, in Victoria 

to be built to a 5 Star standard in energy 

efficiency, plus either a rainwater tank or 

solar hot system. 

Audits and inspections 

The Commission is required to audit a 

minimum of 5 per cent of all certified 

plumbing works. These are carried out 

through random inspections. 

Best practice 

A process, technique or innovative use of 

equipment, technology or resources that 

has a proven record of success in providing 

significant improvement in cost, schedule, 

quality, performance, safety, environment 

or other measurable factors that impact an 

organisation. 

CEPU 

The CEPU is the end product of a number 

of successive union amalgamations. CEPU 

stands for Communications, Electrical, 

Electronic, Energy, Information, Postal, 

Plumbing and Allied Services Union of 

Australia. 

Compliance Certificate 

Licensed practitioners in Victoria are 

required to self-certify their work. This 

certification is made on a Compliance 

Certificate, which shows the details of the 

particular job and is unique to that job. 


The team is responsible for the 

Commission’s strategic direction and its 

organisational effectiveness. It consists of 

the Commissioner, the General Manager 

Operations, the General Manager 

Corporate Services, Chief Financial Officer 

and Director Business Services, Manager 

People and Culture, Director Practitioner 

Registration, Development and Compliance 

and the Director Regulatory Development. 

Investigations 

The Commission investigates complaints 

from consumers and industry in relation to 

breaches of the Act and Regulations. 

Operational Management Team 

The team responsible for the Commission’s 

strategic direction and its organisational 

effectiveness. It consists of the 

Commissioner, the General Manager, 

Corporate Services and four Managers. 


Established under the Building Act 1993, 

this Council provides advice to the Minister 

for Planning and the Plumbing Industry 

Commissioner. 

Sun-setting 

The Subordinate Legislation Act 1994 

requires all Regulations to be automatically 

revoked after 10 years of operation, a 

process referred to as sun-setting. 

78

Disclosure Index 

The 2007–08 Annual Report of the Plumbing Industry Commission is prepared in accordance with all relevant Victorian legislation. 

This index has been prepared to facilitate clarification of the Commission’s statutory disclosure requirements. 

Clause Disclosure Page 

Charter and purpose 

22 B Manner of establishment and relevant Minister 01, 06, 07, 09, 47, 48 

22 B Objectives, functions, powers and duties 04, 05, 06, 07 

22 B Nature and range of services provided 01 

Management and structure 

22 B Organisational structure, names and functional areas of responsibility of senior officers 09–11, 47, 48 

22 B Names of board members 08, 09, 77 

Financial and operational 

22 B Statement of workforce data for current and previous financial year 41–43 

22 B Merit and equity 45 

15 B Executive Officer disclosures 76 

22 B Five-year summary of the financial performance 53 

22 B Significant changes in financial position during the year 53 

22 B Performance against objectives 04–05 

22 B Major changes or factors affecting performance 53 

22 B Subsequent events that will affect operations in the future years 76 

22 B Details of consultancies more than $100,000 and total number and cost less than 

$100,000 [or: Details and total number and cost of consultancies more than $100,000 

and less than $100,000] 

12 A Disclosure of major contracts 51 

22 B Application and operation of Freedom of Information Act 1982 51 

22 B Application and operation of Whistleblowers Protection Act 2001 51 

22 B Compliance with building and maintenance provisions of the Building Act 1993 01, 47 

22 B Statement on National Competition Policy 51 

22 B Occupational health and safety 41 

10 Disclosure index 79 

22B Statement of availability of other information 51, 79 

Other 

Culturally and linguistically diverse communities 43 

Young and Indigenous Affairs 45 

Women 42, 81 

Information relevant to the headings listed in the Financial Reporting Direction 22 of the Financial Management Act 1994 is available 

on the Commission’s website www.pic.vic.gov.au or at the Commission offices and is available on request, subject to the Freedom of 

Information Act 1982. 

53 


Alphabetical index 

A 

Audit Committee 50 

Audits and inspections 31, 36 

Australia and New Zealand Reciprocity Association 13, 14 

M 

Make Your Home Green online portal 32 

Minister 01, 47 

Mission 01 

B 

Building Act 1993 01, 51 

C 

Commissioner 06, 07, 09, 47 

Complaints 37, 38 

Compliance Certificates 23 

Contacts 82 

Corporate governance 47–51 

N 

National Competition Policy 51 

National Plumbing Regulators Forum 13, 16 

O 

Occupational Health and Safety 41, 42 

Operational Management Team 48 

Organisational performance 04–05 

Organisational structure 09 

D 


Development 02, 13, 15, 17 

Disclosure index 79 

E 

Employees 42, 43 

Examinations 26 

Executive Leadership Team 10, 11, 47 

F 

Financial statements 56–76 

Freedom of information 51 

G 

Glossary 78 

Goods Shed 07, 49 

I 

Investigations 37 

L 

Licences 20, 21, 22, 25 

P 

PlumbSmarter 30 

Plumbing Industry Advisory Council 08, 77 

Plumbing Regulations 15, 17 

Privacy 51 

Publications 38 

R 

Registrations 20, 21, 22 

Risk attestation 48, 49 

Role 01 

S 

Sustainability 29–33 

T 

Training and development 43 

V 

Values 44 

W 

Website 82 

Whistleblower’s policy 51 

80

Five-year statistical summary 

Performance measure 2003–04 2004–05 2005–06 2006–07 2007–08 

Regulatory excellence (see page 12) 

Modifications applications 316 346 284 322 328 

Industry responsibility (see page 18) 

Number of individuals holding a plumbing licence and/or registration 19,361 19,947 20,486 20,519 21,378 

Number of individuals holding a registration in at least one class 15,634 15,955 16,523 16,394 17,095 

Number of individuals holding a licence in at least one class 9,588 9,741 10,046 10,430 10,866 

Compliance Certificates lodged 283,294 283,245 289,275 315,760 340,293 

Qualifications Experience Review Committee (QERC) applications 588 634 849 879 709 

Practitioners receiving reciprocal recognition 405 471 451 447 432 

Apprentice practical registration exams held 840 948 1,180 1,406 1,356 

Non-apprentice practical registration exams held 179 238 254 266 278 

Theory-based licence exams held 390 369 474 508 497 

Telephone enquiries regarding registration, licensing and general plumbing 47,227 35,423 38,812 39,139 n/a 

In-person enquiries regarding registration, licensing and general plumbing 7,827 8,119 8,526 8,995 8,463 

Environmental best practice (see page 28) 

Water recycle audits n/a n/a n/a n/a 1,312 

Number of solar installations passed n/a n/a n/a n/a 594 

Number of 2,000 litre water tanks supplying all cisterns passed n/a n/a n/a n/a 618 

Number of recycled water installations – passed n/a n/a n/a n/a 83 

Total 5 Star audits performed n/a n/a n/a n/a 1,312 

Community accountability (see page 34) 

Audits completed (% of total Compliance Certificates lodged) 5.5 5.6 5.3 5.1 5.1 

Audits failed (% of total audits) 11.3 11.1 9.7 7.1 11.2 

Sanitary drain inspections completed (% of total inspections booked) 6.0 6.0 5.4 6.4 5.5 

Sanitary drains failed (% of total inspections) 7.5 6.2 5.7 4.6 3.5 

Formal complaints received 357 419 472 535 683 

Site visits 2,054 1,451 2,055 3,062 3,046 

Investigations conducted into plumbing practitioners 396 376 388 617 609 

Prosecutions completed 28 40 26 62 30 

Disciplinary hearings held 14 15 12 53 53 

Notices and orders issued 56 170 184 118 100 

Our people (see page 40) 

Total head count 56 51 49 50 50 

Percentage of female employees 34 31 39 34 38 

Percentage of male employees 66 69 61 66 62 

Financial performance (see page 52) 

Total income $9.2M $8.8M $9.1M $10.1M $11.2M 

Total expenses $8.8M $8.5M $8.4M $10.6M $11.1M 

Net result for the period $0.4M $0.3M $0.7M ($0.5M) $0.1M 

Total assets $7.9M $8.0M $10.0M $10.7M $11.8M 

Total liabilities $3.5M $3.2M $3.5M $4.7M $4.6M 


Contacts 

Head office 

450 Burke Road 

Camberwell, Victoria 3124 

PO Box 552 

Camberwell, Victoria 3124 

Telephone (03) 9880 6200 

Facsimile (03) 9889 2244 

Toll Free 1800 015 129 

Email publicrelations@pic.vic.gov.au 

www.pic.vic.gov.au 

Monday to Friday 

8.15am – 4.45pm 

Regional offices 

Ballarat office 

2 Skipton Street 

Ballarat, Victoria 3350 

Telephone (03) 5333 4804 

Facsimile (03) 5333 4817 


8.00am – 4.30pm 

Bendigo office 

46 Breen Street 

Bendigo, Victoria 3550 

Telephone (03) 5441 7830 

Facsimile (03) 5442 7845 


10.00am – 2.00pm 

Sale office 

317 York Street 

Sale, Victoria 3850 

Telephone (03) 5143 3021 

Facsimile (03) 5143 3027 


10.00am – 2.00pm 

Wangaratta office 

1 White Street 

Wangaratta, Victoria 3677 

Telephone (03) 5721 3400 

Facsimile (03) 5722 9074 


10.00am – 2.00pm 


Annual Reports are available on the 

Plumbing Industry Commission website 


© Plumbing Industry Commission, Victoria 

October 2008

Annual Report 2007-08 - Plumbing Industry Commission

Create successful ePaper yourself

Delete template?

Save as template?