How to ensure the correct levy is paid

The levy is payable for the total value of works of the approval or contract price, inclusive of GST.

One structure

If there is ONE structure, such as a skyscraper, being built in stages and a separate CC is being issued for each stage, the levy must be paid upfront for the full value of works.  The first CC should show the total value of works for all stages.

Work can certainly be completed in stages however the levy must be paid in full prior to work commencing or the first instalment must be paid on an approved instalment plan. Information on instalments can be found here.

Separate structures

Example:

If there is ONE DA issued for separate structures such as a single dwelling and a swimming pool, CC’s can be issued separately and the levy paid against each CC.  For example one CC for the house at $400k and then a separate CC issued for the swimming pool for $50k.  The levy would be paid on the individual CC value of works as these are separate structures and separate works.

Example:

One DA issued for a development such as a retirement village, with many separate structures and works are to be completed in stages.  Total value of works for the retirement village is $5M. An approval (CC) can be issued for each stage.

Stage 1 works to cover Admin Block, value $1M incl. of GST, levy due is $3,500

Stage 2 works to cover units 1-10, value $2M incl. of GST, levy due is $7,000

Stage 3 works to cover units 11-125, value $2M incl. of GST, levy due is $7,000

Payment of the levy by instalments

Instalment plans are usually approved against the DA or Contract for the total value of works inclusive of GST and payments will be structured to reflect the approximate value of works of each CC to be issued for the entire project.

The Corporation may approve the payment of the long service levy by instalments if the following conditions are met:
  • Project must be valued over $10M (inclusive of GST);
  • Works are expected to take more than 12 months to complete; or
  • The lump sum is unduly onerous.
  • An instalment plan must be applied for and approved by the Corporation, prior to works commencing;
  • The approving authority must satisfy themselves that the first levy instalment has been paid prior to release of any approvals and prior to commencement of any work; and
  • All instalment payments are required to be paid directly to the Corporation, not through an agent such as Council.

An application to pay levy by instalments can be found here.

Please forward the completed application, along with an email advising the name, phone number and email address of your contact at the approving authority issuing the approval for these works to levy@longservice.nsw.gov.au.

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