The levy is calculated at 0.2% of the value of construction work (including GST) where the total estimated value of the work is more than $20,000.00.
The levy applies to construction work whether or not a building permit is required and must be paid before construction work starts.
The levy must be paid by the ‘project owner’ which is defined as:
- The person or entity that holds a building permit in respect of the construction work; or
- The person or entity that issued a contract to carry out the works; and/or
- The person or entity receiving direct benefit of the construction work.
Where a building permit is not required for works to which the levy is applied, the project owner must notify the CTF of the project and its estimated value and pay the levy before construction work starts. Examples where a building permit is not required include:
- Maintenance work; or
- Engineering construction work, such as bridges or roads; or
- Where the Building Act 2011 enables certain types of construction work to commence without the requirement for a building permit.
Penalties may apply if construction work starts prior to payment of the levy.
Determining the value of construction work
Schedule 2 of the Act notes the value of construction, for the purposes of the levy, needs to include:
- The sum of the value of all goods (including manufactured goods) forming part of the construction work
- Fees payable
- Overheads to be met, profit margin and GST
- Services necessary.
Where the final value of the project has varied by more than $25,000, an additional payment or refund may apply. This is reconciled on project completion.
All project owners must provide a minimum standard of information for construction work where the levy is payable. This information is collected when payment is made online via the CTF portal or by completion of a levy form if the payment is made via a Local Government Authority (LGA) as part of an application for a building or demolition permit.
If there is no fixed-price contract, the amount of levy due before construction works starts is calculated based on the estimated value of the construction works.
The meaning of construction work
The Act refers to the Construction Industry Portable Paid Long Service Leave Act 1985 in outlining the meaning of ‘construction work’ (Section 3 (1)) to which the levy applies.
‘Construction work’ means the following processes:
- Carrying out on a site the construction, erection, installation, reconstruction, re- erection, renovation, alteration, demolition or maintenance of or repairs to any of the following:
- Swimming pools and spa pools
- Roads, railways, airfields, or other works for the passage of persons, animals or vehicles
- Breakwaters, docks, jetties, piers, wharves or works for the improvement or alteration of any harbour, river, or watercourse for the purposes of navigation
- Works for the storage, or supply of water or for the irrigation of land
- Works for the conveyance, treatment or disposal of sewage or the effluent from any premises
- Works for the extraction, refining, processing, or treatment of materials or for the production of extraction of products and by-products from materials
- Bridges, viaducts, aqueducts, or tunnels
- Chimney stacks, cooling towers, drilling rigs, gas holders or silos
- Navigational lights, beacons, or markers
- Works for the drainage of land
- Works for the storage of liquids (other than water) or gases
- Works for the generation, supply, or transmission of electric power
- Works for the transmission of wireless or telegraphic communications; pile driving works
- Structures, fixtures or works for the use on or for the use of any buildings or works of a kind referred to in subparagraphs 1 to 15
- Works for the preparation of sites for any building or works of a kind referred to in subparagraphs 1 to 16
- Fences, other than fences on farms.
- Carrying out of works on a site of the construction, erection, installation, reconstruction, re-erection, renovation, alteration or demolition of any buildings or work of a kind referred to in paragraph (a) for the fabrication, erection or installation of plant, plant facilities or equipment for those buildings or works.
- Carrying out of work performed by employees engaged in the work referred to in paragraph (a) or (b) and that is normally carried out on-site but which is not necessarily carried out on-site.
This does not apply to:
- The carrying out of any work on ships.
- The maintenance of or repairs or minor alterations to lifts or escalators.
- The carrying out of maintenance or repairs of a routine or minor nature by employees for an employer, or another person under an arrangement with a labour hire agency who is not substantially engaged in the industry described in this interpretation.
Work excluded from the levy
There are some exclusions for the purposes of collecting the levy from the definition of construction work in Regulation 3 of the Building and Construction Industry Training Fund and Levy Collection Regulations 1991.
The main exclusions from application of the levy are:
- Work below $20,000 in value
- Agricultural work (does not include work for which a building permit is required)
- Government work undertaken by government employees
- Foreign missions and consulates
- Resources operational work (see below).
The levy applies to engineering construction works (that commenced after 1 October 2018) and residential and commercial construction works in the resources sector. Penalties may apply if construction work starts prior to payment of the levy and/or if the final construction values are not reported when there is a significant variance from the original estimated value.
The regulations refer to resources as:
- Minerals as defined in the Mining Act 1978 (WA) Section 8(1)
- Petroleum as defined in the Petroleum and Geothermal Energy Resources Act 1967 Section 5(1)
- Geothermal energy as defined in the Petroleum and Geothermal Energy Resources Act 1967 Section 5(1).
Resource sector exclusions
The following operational works in the resources industry are excluded from the levy, unless the work; is on, results in, or otherwise relates to, a residential or commercial facility:
- Work associated with exploration or drilling for resources.
- Work associated with exploration or drilling for the purposes of a geosequestration process.
- Work on or resulting in an unsealed haul road or track that is associated with a resources operation.
- Work on or resulting in a structure that is:
- for the storage, treatment, supply, or disposal of non-potable water; and
- is associated with a resources operation.
- Work on or resulting in a structure that is:
- for the storage of tailings, overburden or waste; and
- is associated with a resources operation.
- Work for the excavation or back-filling of soil or overburden that is associated with a resources operation.
- Work for the environmental remediation, restoration or rehabilitation of ground disturbed by a resources operation.
- Work for the closure or decommissioning of one or more resources facilities (including work associated with environmental remediation, restoration or rehabilitation).
- Work for the repair or maintenance of one or more resources facilities.
- Work for any of the following if the value in aggregate of the work, estimated in accordance with subregulation (3), is $10 million or less:
- the alteration or renovation of one or more resources facilities;
- the replacement of one or more resources facilities that have been or are to be closed or decommissioned; and
- the relocation of one or more resources facilities.
Adjustment of levy paid
If the final construction value has varied by $25,000 or more (including GST) from the original estimated value, the project owner must advise the CTF. Penalties may apply if the final construction values are not reported when there is a significant variance from the original estimated value.
If the final construction value is:
- $25,000 or more over the original estimated value, the project owner is required to pay an additional levy.
- $25,000 or more under the original estimated value, the project owner is entitled to a partial refund of the original levy paid.
Calculating the final construction value
The final value of the construction work must be calculated based on all elements included in the original estimated value of the project, as per Schedule 2 of the Act.
For construction work that required a building permit, the final construction value must include all non-building works performed as part of the contract not covered as part of the building permit, e.g. ground works, carparks, hardstands, hard landscaping.
The project owner is also required to account for inflation in the normal manner in calculating the final construction value, based on the following rates as nominated by the Board in accordance with the Act.
|2022 – 2023
|2021 - 2022
|2020 - 2021
|2019 - 2020
|2018 - 2019
|2017 - 2018
|2016 - 2017
|2015 - 2016
|2014 - 2015
|2013 - 2014
Refund of levy payment
If the construction work or project is cancelled or did not commence the project owner, or the person nominated on the levy form who receives the CTF receipt for levy payment, can apply for a full refund of the levy paid. Please contact us for the levy refund form.
To process a refund of the levy paid, we need some supporting documentation.
If a building permit was required, the project owner needs to provide:
- Proof of the building permit cancellation; or
- Notice of cessation in the form of a letter from the LGA or permit issuing authority.
If a building permit was not required (as per the Building Act 2011), the project owner needs to provide:
- A statutory declaration. Please contact us to access the statutory declaration form.
Transfer of building permit
If construction works are transferred to a new builder under an existing building permit, a refund of the levy may be issued to the original builder upon receipt of the levy from the new builder. This is dependent on the value of construction works completed at the time the transfer is finalised.
If a new builder is appointed with a BA19 form while the building permit is still valid and a refund has been processed to the previous builder, the new builder is responsible for paying the levy.
This is based on the estimated value of construction works required to complete the project, prior to commencing the remaining construction works.
The new builder will assume responsibility for any adjustments to the levy based on final construction value.
How to pay the CTF levy
- Credit card, with a 1.1% non-refundable surcharge applied by the payment gateway provider; or
- Electronic Funds Transfer (EFT).
We will email a receipt within 3 working days.
This receipt can be submitted to a Local Government Authority (LGA) as part of the building permit application.
Alternatively, many LGAs will accept payment of the levy (on our behalf) during the building permit application process.
Penalties for not paying the levy
Failure to pay the levy (for construction works to which the levy applies) or providing false or misleading information is an offence.
- $20,000 for an individual person.
- $50,000 for a body corporate.
Where construction work is started before the project owner has paid the levy due, the project owner may be liable to pay 100% of the unpaid levy in addition to the original levy amount and any other penalties which may apply.
Apply to pay the levy by instalments
The project owner can pay the levy by instalments if the estimated value of construction work is $500 million or greater.
The instalment amounts are to be paid annually on, or before, the anniversary of the due date of the first instalment payment.
The project owner must notify the CTF of the intention to pay the levy by instalments in an appropriate timeframe before construction work starts.
Information relating to the construction works must be provided for the Board’s consideration and approval for payments by instalment and for the payment period to be determined.
If the project owner does not notify the CTF of the intention to pay the levy by instalments before construction work starts, the full amount of the levy for the construction work must be paid.
We strongly recommend referring to our Information Guide on ‘Paying the CTF levy by instalments’ for details on the application process and for the application form.
Levy instalment application process
- Project owners need to register the construction work in the CTF portal, through an existing or new account. We strongly recommend referring to the step-by-step instructions in our How To Guide for how to create an account in the portal. Alternately, project owners can contact us on (08) 9244 0100.
- Read the Information Guide on ‘Paying the CTF levy by instalments’ and complete the application form. Email the application form back to the CTF.
Following the Board’s review of the application, we will contact the project owner to confirm the payment period, instalment amounts and the schedule of payments. The first levy instalment needs to be paid before construction work starts. This can be paid in the CTF portal (“Levy management”).
For further information, please contact us:
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