What you need to know about the CTF Building and Construction Levy

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The building and construction industry is an incredibly crucial industry within Australia.

If you’re currently a part of it, or undertaking training to join it, you’re in for steady job prospects, boundless opportunities for growth, and the potential to earn great money.

To continue building Western Australia’s construction industry, reduce the cost of training a diverse, job-ready workforce, and educate the next generation about the variety of exciting roles and opportunities on offer in our industry, we collect a levy.

It’s called the CTF Levy and it’s responsible for giving back to the Western Australian construction industry, and the wider community in many positive ways.

Interested in finding out more about the CTF building and construction levy?

Read more from CTF to find out what you need to know.

What is the CTF building and construction levy?

The Building and Construction Industry Training Fund levy (commonly shortened to ‘the CTF levy’) is a levy collected on construction work valued at more than $20,000 (including GST).

The CTF levy is calculated at 0.2% of the estimated value of construction work, and is applicable to:

  • Buildings (from residential to commercial, industrial and some mining, oil and gas facilities)
  • Non-buildings (including civil, engineering, groundworks and fences)
  • Construction activities such as erection and installation, reconstruction and re-erection, renovations and alterations, demolition, maintenance and/or repair work.

The levy still applies to construction work that does not require a building permit.

What makes up the estimated construction value?

Essentially, it’s all the costs associated with the construction project, including:

  • Goods – manufactured goods, plant or fixed equipment
  • Services – facility rentals, and insurance costs
  • Labour costs
  • Fees payable – building permits and waste disposal
  • Overheads – management, surveyors and supervisors
  • Even profit margin.

The benefits the CTF levy brings to Western Australia are wide-reaching – we’ll have more on these benefits shortly.

But first, let’s see who is responsible for paying the building and construction levy.

Who pays the CTF building and construction levy?

The individual or company who undertakes or benefits from the construction project is responsible for paying the CTF levy. The project owner pays it before the commencement of construction work.

The levy still applies even if a contractor is undertaking work on behalf of a government body. Examples of these include performing contracted construction work for the local government or through the Department of Finance. However, some government bodies pay for the levy directly.  The contractor needs to clarify with the government body they're contracted to. Some exclusions apply, such as work performed by government employees.

If you’re ever unsure, don’t hesitate to contact CTF for clarity.

Now, let’s explore how the CTF levy is invested back into the industry and in turn, the greater Western Australian community.

How CTF invests the levy back into the industry

There are plenty of reasons why CTF collects the CTF levy; and one of them is investment for the future of the industry.

CTF invests the levy back into the industry in a wide range of ways, in the form of:

  • Employer grants

Are you an employer in the Australian building and construction industry?

Paying the levy gives back to you more than you would think. How? By offsetting costs and keeping your employees highly skilled, educated and competent to work. For example, our apprenticeship grant for employers includes a base rate of $3,000 to $10,000.

Eligibility criteria applies. We’re here to help you too. Find out more information here.

  • Upskilling funding

Already working in the construction industry but thinking about future-proofing your job?

That’s what upskilling is for and here at CTF, we provide welcome incentives for workers who are keen to diversify their skillset. What does this mean? It means if you successfully complete an approved short course offered by a Registered Training Organisation (RTO), you may be eligible for a rebate of up to 80% of the training costs.

Eligibility for a CTF rebate is dependent on your ability to demonstrate primary and substantial, direct involvement on relevant projects in Western Australia’s construction industry. Specifically, this includes on-site construction, installation and/or fabrication activities.

Contact CTF to see if you qualify.

  • Program Subsidies

CTF subsidies, are available to provide financial support to specific sections of the industry.

  • The Apprentice Tool Allowance is a $4.5 million program, that provides eligible apprentices and trainees with a rebate of $500 for the purchase of relevant tools and/or safety equipment.
  • The Disaster Recovery Construction Training Grant supports the people rebuilding communities affected by the Woorloo bushfires and Cyclone Seroja.
  • The Mature Age Wage Gap is a CTF subsidy aimed at offsetting the extra costs employers may incur when hiring an apprentice or trainee over the age of 21. The subsidy is still in its infancy but has already assisted building and construction employers to add more than 150 eager mature-age apprentices to the workforce.
  • Sponsorships

Collecting the CTF levy allows CTF to sponsor relevant training awards, activities and events, further allowing all construction sectors to receive CTF sponsorship support.

It’s designed to ensure every sponsorship we commit to aligns with our values and provides an opportunity for us to communicate our vision to specifically targeted audiences. All construction sectors receive sponsorship support from CTF.

  • Research

Finally, the CTF levy allows CTF to conduct relevant research into the building and construction industry. This allows us to better support current and future generations of construction workers in Australia.

We even welcome opportunities to collaborate with others to conduct research, report back on and improve training in the building and construction industry.

You can find the research made possible by the CTF levy, here.

Where can I go to find out more about the CTF levy?

You can find out more about the CTF levy through the CTF website.

The Government of Western Australia also has a valuable website to help you understand and pay the building and construction levy.

Remember, we’re here to help you make the most out of training, upskilling and other incentives in the building and construction industry and are here to answer all your questions.

Need to pay your CTF building and construction levy? Register for access to the CTF Online portal and pay online.

Want to explore how CTF can help you? We’re here to help with industry-related support, resources and incentives to further pursue your important role in the Australian building and construction industry.

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Acknowledgement of Country

The Construction Training Fund acknowledges the Traditional Custodians of the land throughout Western Australia and pay our respect to the Elders both past and present. We thank them for their ongoing custodianship of the lands and waters, and celebrate their rich culture of art, song, dance, language, and stories.