WA’s construction industry plays a critical role in our thriving resources sector, from building new mines and LNG plants to developing the essential infrastructure that supports them. With such a vast industry, it goes without saying that its construction activity is incredibly varied. But what exactly qualifies as ‘construction’ in the resources sector? How can you know if your project is subject to the CTF levy and if you are eligible for CTF funding? Let's unpack it.
What is considered construction in the resources sector?
Generally, any construction for the extraction, transportation, and processing of a natural resource, such as minerals, petroleum, or geothermal energy resources. There are exclusions to this however, such as green hydrogen production or methane production from landfill leachate among others. These exclusions may be leviable as civil or commercial construction.
When it comes to types of resources construction work, examples include a new build, significant expansion, or refurbishment of facilities.
More specifically, and as defined by the Act, it is the carrying out of construction, erection, installation, reconstruction, re-erection, renovation, alteration, demolition, maintenance, or repairs activities.
It goes without saying that construction in the resources sector is often large-scale and complex, covering a wide range of projects across:
- Mining
- Gas and petroleum wells, rigs, and platforms
- Pipelines and processing plants
- LNG plants and refineries
- Power generation and transmission infrastructure
- Railways, ports, and ship-loading facilities
- Roads, bridges, airfields, and communications infrastructure
From new builds and installations to upgrades and large-scale repairs, modifications and expansions, construction work in the resources sector spans a vast range of activities. With this in mind, it’s important to understand what is considered a CTF leviable construction project.
Does the CTF levy apply to all construction projects in WA’s resources sector?
For the most part, yes. The CTF levy is 0.2% of the total value of construction work, and it applies to most construction projects in WA’s resources sector, even those offshore.
To see if your project is subject to the levy, ask yourself these two questions:
- Is the project related to developing, expanding, or maintaining key infrastructure in WA's resources sector?
- Does it involve major construction, renovations, or facility upgrades?
If you answered ‘yes’ to both questions, the CTF levy likely applies.
However, there are some exceptions …
Exclusions from the CTF levy
While the levy applies to most construction work, there are some specific exclusions:
- Core resources operations
Activities like exploration, waste management, unsealed haul roads, back-filling, excavation, and other associated works.
- Repairs and maintenance
Routine maintenance of existing resources facilities.
- Minor works under $10million
For the relocation, replacement, renovation, or refurbishment of existing resources facilities.
- Environmental and decommissioning work
Construction work for environmental remediation, closure, or decommissioning of a resources facility.
Without making things too complex, it’s important to know that there is an exclusion to the exclusions.
That is, construction work related to a residential or commercial building. This could include accommodation, offices, kitchen, dining or recreation areas, a workshop or warehouse, among other things. In these cases, the levy does apply as they are not considered resources sector facilities.
For the full list of exclusions, view The CTF Levy and WA’s Resources Sector Information Guide.
How can employers and workers benefit from CTF funding?
The funds collected through the levy are reinvested into WA’s construction workforce. Not only does it help ensure workers across have the right skills to meet industry demands, it creates a sustainable workforce for the future. Both employers and employees can benefit from funding, providing they meet specific criteria.
For employers:
If you're undertaking construction activities in the resources sector, you and your employees could qualify for CTF funding, including:
- Employer Grant for hiring apprentices – up to $34,500 available to support employers in training apprentices and trainees.
- Upskilling and short course funding - rebates covering up to 80% of the cost of approved training courses for you and your employees.
For employees:
If you’re directly involved in construction work in the resources sector, you could be eligible for:
- Upskilling and short course funding – offset your training costs and boost your skills by completing an approved course/s across five categories.
- Apprentice Tool Allowance – up to $1,000 reimbursed to cover the cost of work-related tools and/or safety equipment.
- Apprentice Support Bonus - an annual payment of $1,000 made on the anniversary of your apprenticeship/traineeship commencement date.
Understanding how the CTF levy applies to the resources sector helps ensure you make the most of the funding opportunities available. Whether you’re an employer or employee, there’s support available to help you build a stronger future in WA’s resources sector.
If you have questions about the CTF levy and how it may apply to your resources project, please get in touch with the Levy Team on (08) 9244 0100 or at levycompliance@ctf.wa.gov.au
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