Building & construction work where levy is payable

The New South Wales (NSW) Government charges a levy on all building and construction work that requires approval under any legislation and has a cost of works of $25,000 and above (inclusive of GST).

The types of building and construction work which are leviable, is also important and is defined partly by the Building and Construction Industry Long Service Payments Act 1986 and partly by the Local Government Act.

In general terms the building and construction works liable to payment of a levy are:

  • civil construction eg roads, bridges, airfields and sub-divisions
  • buildings and residential dwellings
  • pipelines
  • fuel, gas and water storage facilities and fixed distribution infrastructure
  • sewage drainage and treatment systems
  • telecommunications and electrical distribution infrastructure.

The cost of building and construction work in broad terms is the cost of labour and materials, including excavation, site preparation, concreting, carpentry, bricklaying, tiling, gyprocking, plumbing, structural steelwork, electrical and painting. External permanent structures such as retaining walls, paving and kerbing etc are also included.

  • The current levy rate until 31 December 2022 is 0.35% of the cost of building and construction works of $25,000 and above (inclusive of GST).
  • From 1 January 2023 the levy rate will change to 0.25% of the cost of building and construction works and will only be payable if the cost of works is $250,000 and above (inclusive of GST).
  • The levy is payable online, at local councils or direct to LSC.
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