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Levy Payer FAQs

How is the scheme funded?
The scheme is funded by a levy placed on eligible construction works, calculated as a percentage of the total cost of the works.  From 7 April 2014, a levy of 0.1% is applied to construction projects that cost $1 million or more - excluding single detached dwellings, including related private garages, carports, sheds or the like. For construction projects that started before 7 April 2014, regardless of completion date, a different levy rate and leviable threshold apply. Refer to Levy Information for more details.
How is the levy calculated?
The levy is is calculated as a percentage of the cost of the construction work and is payable on all eligible construction projects of at least;

  • $1 million or more in value for projects that started on or after 7 April 2014, or
  • $200,000 or more in value for projects that started before 7 April 2014, regardless of the completion date.
Note: Effective from 1 July 2009 a two tier levy regime applies to construction projects with construction costs in excess of $1 billion.

For further detail refer to Construction Industry Long Service Leave and Benefits Act.

The formula for calculating the levy amount on projects with construction costs from either $1 million [or $200,000 if applicable] to $1 billion is:

The levy rate has been reduced, effective from 7 April 2014.

This means for construction projects that start:

  • on or after 7 April 2014, regardless of completion date, the levy rate of 0.1% applies.
  • from 1 April 2012 to 6 April 2014, regardless of completion date, the levy rate of 0.3% applies.
  • from 1 July 2009 to 31 March 2012, regardless of completion date, the levy rate of 0.4% applies.
  • before 1 July 2009, regardless of completion date, the levy rate of 0.5% applies.
For further detail refer to Construction Industry Long Service Leave and Benefits Regulations

As the levy is payable in advance, the initial amount for calculating the levy payable is generally based on a payer’s self-assessment of the estimated total cost of the construction work. Therefore, at the date of practical completion of the project, a reconciliation of the actual total cost of construction will be required as an additional levy or refund may be payable once the final cost is known.

Payers should note that, as part of NT Build’s internal audit program, construction projects may be subject to routine audit.

Cost of construction work
Generally, the cost of construction work is identified as being "the total contract prices for all the construction contracts in relation to the work (the contract price for the work)". Note: any GST amount charged forms part of the total contract price. This broad definition includes the cost of labour, materials (including prefabricated goods and installation), equipment, design, project management, consultancy and any other cost that directly or indirectly relates to the work. Therefore this also means that if any of the actual contract prices (or invoices) for procuring any of the goods or services related to the construction work included an amount for GST - then the full contract price is inclusive of those GST amounts charged. For further detail refer to section 37 of the Construction Industry Long Service Leave and Benefits Act.
Who pays the levy?
The person for whom the construction work is being done pays the levy except where that is an interstate government entity in which case the person carrying the work must pay.
Exemptions
The levy does not apply to work:
  • on single detached dwellings, including related private garages,
  • carports, sheds, or the like.
  • for which the total contract price for the construction work is less than $1 million in value (effective from 7 April 2014) or $200,000
  • in value for projects started before 7 April 2014.
  • undertaken for not-for-profit organisations in respect of voluntary labour or donated materials.
Does the levy apply to the NT Government?
Yes. The NT Government must pay the levy for work done for agencies, such as Dept of Infrastructure, PowerWater, Housing and others.
When must the levy be paid?
Before construction work starts.
Does the levy include GST?
As illustrated by the following formula, the levy payment itself does not have GST applied to it.  However, any GST amount charged that forms part of the contract prices that makes up the total cost for the particular construction works is included when calculating the leviable amount. The formula for calculating the levy amount on projects with construction costs from either $1 million [or $200,000 if applicable] to $1 billion is: For more information on how to calculate the levy and how to determine the cost of the particular construction works please refer to information published under levy_info and relevant fact sheets.
What happens if the levy is not paid?
NT Build can order the work to stop. Interest can be charged on late payments. NT Build can prosecute for failure to pay the levy or failure to comply with notices to stop work.
Can the levy be paid in instalments?
Yes, if the work is to take longer than twelve months and the levy is more than $10,000 a developer may apply to the Board of NT Build for approval to pay the levy by instalments. The minimum instalment payment will be $10,000.
What happens to the money paid into NT Build?
NT Build uses the revenue to fund the payment of long service leave benefits accrued by construction workers.
What is construction work?
For the purpose of the Act, construction work covers civil works, land draining & reclamation, earthworks, site restoration and landscaping. It also includes altering, repairing, restoring, maintaining, dismantling, demolishing or removing buildings, structures or fittings and fixtures therein. The full definition of construction work is included in the Construction Contracts (security of Payments) Act (available for downloading or viewing on the NT Government legislation database). Further information can be obtained from a series of Information Fact Sheets published under the Publications menu on this web site or available by phoning NT Build on 1300 795 855.