Levy Summary & Electronic Lodgement

Building And Construction Industry Training Fund and Levy Collection Act 1990 - Summary

1. “Project owner” in respect of any construction work means –
   1. The person who is required to hold a building permit in respect of that construction work;
   2. Where the construction work is carried out by the State, or an agent or instrumentality of the State, the person or organisation designated in writing by the Minister to be the project owner or, if the State or an agent or instrumentality of the State has engaged another person or body, other than as an employee, to carry out or cause to be carried out all of the construction work, the person or body so engaged; or
   3. Where paragraphs (a) and (b) do not apply –
      1. the person or body for whose direct benefit construction work exists upon its completion; or
      2. if the person or body referred to in sub paragraph (i) has engaged another person or body, other than as an employee, to carry out or cause to be carried out all of the construction work, the person or body so engaged.
2. “Construction work” means all of the work carried out in the State (or as referred to in Section 5 of the BCITF Levy Collection Act 1990) –
   1. That is included in the definition of “construction industry” in the Construction Industry Portable Paid Long Service Leave Act 1985; or
   2. That is included in the definition of “building work” in the Building Act 2022.
3. Payment of Levy (where estimated cost of building or construction work exceeds $20,000 inc GST) every project owner shall –
   1. Before commencing any construction work for which a building permit is required, pay to a collection agent or the Board, the levy in respect of that construction work based on the value of the construction work estimated (local government is required to sight evidence that the levy has been paid prior to issue of the building permit);
   2. Before commencing any construction work for which a building permit is not required –
      1. notify the Board of the construction work and the value of the construction work estimated; and
      2. pay to the Board the levy in respect of that construction work based on the value of that work as notified to the Board; and
   3. where, on the completion of construction work, the value of the construction work varies by an additional amount of $25,000 (inc GST) or more (after adjustment has been made for inflation) from the value of that work as estimated for the purposes of paragraph (a) or (b), notify the Board of that variation.
4. Construction work shall be regarded as commencing –
   1. Where construction work commences on site (refer local government requirement as per (v)(a)).
   2. If paragraph (a) does not apply –
      1. where the construction work was carried out under a contract executed before the Act came into operation; and
      2. the project owner, after this Act came into operation, engages another person or body, other than as an employee, to carry out or cause to be carried out any part or stage of that work. When any of the construction work that the person or body is engaged to carry out or cause to be carried out commences on site.
   3. If paragraph (a) or (b) does not apply, when the construction work is commenced on site, notwithstanding the above, a levy is not payable in relation to construction work for which a building permit has been issued before this Act came into operation.

Penalty 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.

Penalties are:

• $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.

6. Where on the completion of construction work the Board is satisfied that the value of construction work varies by $25,000 (inc GST) or more (after adjustment has been made for inflation) from the value of that work as estimated for the purposed of (vi) above, the project owner shall pay to the Board or to a collection agent, an amount equal to the extra amount that would have been payable if the estimated value of the construction work had been the actual value of that work, where the value of the construction work was under estimated. Where variation reduces more than $25,000 of the value of estimated construction work or the work is cancelled, the person or company addressed in the CTF levy receipt or in the CTF levy form, can apply for a refund of the levy paid. The levy refund is subject to the submission and assessment of supporting documentation. Please contact us for the levy refund form and other supporting documentation requirements.

7. Levy Calculation
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.

Electronic lodgement and payment

The CTF accepts levy submissions and payment via an electronic lodgement system, the CTF Portal. Project Owners may submit initial levy payment and for adjustments where an additional levy is payable via the CTF Portal. The CTF provides two payment methods:

Credit Card Payment

The CTF accepts credit card payment by Visa and MasterCard.

Using the credit card facility for your online levy payment allows you to receive an instant receipt and you are able to pay at any time of the day.

Alternative payment methods such as EFT are available however it may take up to 3 business days for your payment to be processed.

Electronic Funds Transfer (EFT)

EFT is a convenient, free way to pay the levy. Customers using this method will not receive a receipt until the levy payment has been received in the CTF’s account. As soon as payment is confirmed, a copy of the levy details in the form of a receipt will be issued to the email address registered.

Variations

Under the Building and Construction Industry Training Fund and Levy Collection Act 1990 project owners shall:

Part 4, Section 21 item (c) – “where on the completion of construction work, the value of the construction work varies by an additional amount of $25 000 or more (after adjustment has been made for inflation in the prescribed manner) from the value of that work as estimated for the purposes of paragraph (a) or (b), notify the Board of that variation”

Part 4, Section 22 – Adjustment of amount paid after completion of construction work – “where on the completion of construction work the Board is satisfied that the value of construction work varies by $25 000 or more (after adjustment has been made for inflation in the prescribed manner) from the value of that work as estimated for the purposes of section 21(1) (a) or b) –

1. the Board shall refund from the Fund to the project owner an amount equal to the extra amount paid, where the value of the construction work was over estimated; and
2. the project owner shall pay to the Board or to a collection agency an amount equal to the extra amount that would have been payable if the estimated value of the construction work had been the actual value of that work, where the value of the construction work was under estimated.

The CTF may request the production of documentary evidence to support the Final Value of Construction that is provided by the Project Owner. The CTF may adjust the Final Value of Construction and resulting levy payment amount if required.

Adjusting for Inflation

Adjustment for inflation shall be made by the Board where the final value of construction has raised by more than $25 000 from the original estimated value (Regulation 7). The Board has endorsed the following rates for adjustments against inflation;

The Variation Payment page will apply adjustments for inflation to calculate additional levy payments / refunds for project owners.

If you have any questions please email info@ctf.wa.gov.au