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How is the levy calculated?

Cost of construction work

Who pays the levy?

Exemptions

What is construction
work?

Notification of work

When is the levy to be paid?

Penalties for not paying 
the levy

How to pay the levy

Information Fact Sheets

 

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:

{

Total cost of construction work,
inclusive of any GST charged
(refer definition below
)

}

x

applicable levy % rate
(refer below)

=

Levy payment (GST exempt)
Note: amount rounded to nearest dollar
(with 50c to be rounded downwards)

 

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 levy is to be paid by the person for whom the work is to be done except where the work is to be done for the Australian Government or some interstate Government entity in which case the contractor doing the work is liable to pay the levy.

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.

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 Fact Sheets published under the publications menu on this web site or available by phoning NT Build on 1300 795 855.

Notification of work
The person for whom the work is to be done must notify NT Build of the work prior to commencement.

When is the levy to be paid?
The levy must be paid before the work commences on the project.

The levy payer can also apply to NT Build to pay the levy by instalments if the value of the levy exceeds the amount of $10,000 and the project is expected to take more than one year to complete. However, the first instalment must not be less than $10,000 and must be paid to NT Build at or before the time when the full amount of the levy would have been payable.

NT Build may approve or refuse a levy application or decide to vary its terms.

If a levy payer fails to pay an instalment in accordance with an approved instalment plan, the approval will cease to have effect and the amount of the levy that remains unpaid will become immediately payable, start to bear interest and be recoverable in a court of competent jurisdiction. The amount recoverable may also include any costs associated with the recovery of the unpaid levy amount.

Refer Project Notification Form and relevant levy information sheets and Board policy decisions available under the publications menu on this web site or by phoning NT Build on 1300 795 855.

Penalties for not paying the levy
Interest and fines may be imposed of the levy is not paid when required.

The Act also provides NT Build with the power to issue an order to stop work on the project until such time as the levy payer has met their statutory responsibility. 

How to pay the levy
Unless otherwise approved by the Board, a tax invoice will be issued upon lodgement of a completed Project Notification Form. Payment will be accepted by cheque or EFT (payments by cash or credit card are not accepted).  Further information is available by phoning NT Build on 1300 795 855.

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Last updated: Wednesday, 04-Jan-2017 13:42:23 CST.