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About the Levy

About the Levy

The Construction Industry Training Board (CITB) was created at the request of the SA building and construction industry and is established by an Act of Parliament known as The Construction Industry Training Fund (CITF) Act 1993 “The Act”.

In accordance with the Act, the operations of the CITB are funded by a levy of 0.25% (1/400th) on building and construction activity over $40,000 (inc. GST) carried out in South Australia.

Common Questions before filling our the Levy Form

What is it and why am I paying it?

The Construction Industry Training Board (CITB) was created at the request of the SA building and construction industry and is established by an Act of Parliament known as The Construction Industry Training Fund (CITF) Act 1993 “The Act”.

The makeup of the construction industry is unique to most other industries. It is dominated by small business and sole traders (i.e. self-employed), in a highly competitive, highly regulated, project based environment. Workers in the industry typically don’t have a ‘training and staff development budget’ like larger companies however they are exposed to more stringent training safety and regulatory requirements than most industries, i.e. trade licensing.

Future tradespeople are trained through a mentor and apprentice system, with the majority of skills gained on the job for up to a 4 year period.

The Act was established to create a mechanism to counteract these unique vulnerabilities and ensure that the construction industry workforce is kept highly skilled, compliant with the latest OHS requirements, and trained in all trades spanning the industry.

The end consumer is the ultimate beneficiary with highly skilled tradespeople producing quality work that is safe and reliable. Less re-work and accidents occur, new technologies and techniques emerge and prices are driven down through efficiency.

In accordance with the Act, the operations of the CITB are funded by a levy of 0.25% (1/400th) on building and construction activity over $40,000 (inc. GST) carried out in South Australia.

Who pays the levy?

The levy is paid by the project owner.

Project owner is the person/organisation engaged to carry out or cause to be carried out all or substantially all of the building or construction work associated with a particular project (at the time of building approval). The project owner is often the ‘head contractor’.

In any other case, it is the person/organisation for whose direct benefit the building or construction work exists on its completion i.e. the property owner.

Where do I pay the levy?

You can lodge and pay the levy online.

Payments can be made quickly and securely online with your credit card, electronic funds transfer or BPAY.

Note: if you pay by credit card an instant levy receipt is emailed to you, other payment methods take approx. 2 days to clear the bank before the levy receipt is issued.

When do I pay the levy?

The CITB Act stipulates the project owner is required to pay the CITF levy before obtaining building approval, or if no building approval is required, before commencing construction.

People or organisations who do not pay the levy prior to construction work commencing and/or make false or misleading statements may be subject to a penalty and/or fine.

Local Council’s have the option to do a single lodgement annually of all the Council’s Capital works for the financial year. Please contact CITB to discuss further.

What is building and construction work?

Building and construction work (according to the Act) is broadly defined and includes, but is not limited to:

  • construction, erection, demolition, alteration of a house, building or structure including fit-out
  • excavation work for new subdivision
  • site preparation
  • new roads and footpaths and repairs to roads and footpaths
  • construction of new commercial buildings
  • office/commercial fit-outs
  • construction and installation of transportable homes
  • air-conditioning and electrical work
  • construction of railways
  • dredging
  • asbestos removal
  • runway construction
  • landscaping
  • and more ...

For a full listing refer to Schedule 1 of the Construction Industry Training Fund Act 1993. If you are unsure if your project constitutes building or construction work please contact us on 1800 739 839 or citb@citb.org.au

Council specific capital works programs, additional detail can be found in the Council Factsheet.

Common Questions while filling out the Levy Form

Is the levy paid on Development Cost?

The levy is paid on the value of 'Building or Construction Work' as defined by the Act, Schedule 1 and Schedule 1A.

Development cost and 'Building or Construction Work' estimated project value for CITB purposes value can be different.

For example, the CITF Act includes demolition costs and fit-out costs for fixed furniture & fittings.

Is GST included in the levy calculation?

The value of any GST payable is to be included as a component of the estimated value of building or construction work.

Per CITF Regulation 2021, section 16.

Note: GST is not payable on the actual levy amount, per section 81-5 of A New Tax System (Goods and Services Tax Act) 1999. Tax invoices will not be issued as there is no entitlement to input tax credits arising from payment of the levy.

What if the project changes or is cancelled?

If you are no longer proceeding with a project you may be entitled to a refund.

Email us at citb@citb.org.au noting your Project ID and we will send you a CITB Levy Refund Application Form.

The application form requires the following supporting documentation:

  • Confirmation from local council confirming withdrawal of building approval (email/letter)
  • Cancellation letter between client (if applicable)
  • Reason for cancellation
What if the land/property is sold, can I get the levy refunded?

If the land and/or property is sold with the development approved plans then the CITF levy is still current and no refund is available - the levy becomes part of the sale to the new owner, this applies irrespective of whether the plans are intended to be used or not.

Email or contact CITB to let us know the new owners details and we will confirm the transfer and change the project owner in our system.

If the land and/or property is sold without development plans then you can apply for a levy refund, as per above.

What if the project owner changes i.e. changed builder?

Contact CITB and let us know the new project owner details and we will confirm and then change the project owner in our system.

What if there is more than one contract for the building and constructions works?

If work is carried out under a contract or series of contracts then the levy is paid on the total contract value as long as it includes:

  • Labour, services, fees (including professional fees)
  • Building or construction materials
  • Fixtures, fittings including plant and equipment (there are exclusions for some types of plant and equipment, please contact us for clarification)
  • A reasonable allocation of profit margin
  • The value of any overheads
  • Any other component prescribed by regulations (GST)

If the work is not carried out under a contract then a reasonable market value for all the items listed above. See Schedule 1 for further details.

What if there is no contract in place for the building and construction work, or I am doing the work myself?

If the work is not carried out under a contract then a reasonable market price for the work on the assumption that all of the following are included as components of that work:

  • the value of labour, necessary services and fees (including professional fees) payable in relation to the work; and
  • the value of building or construction materials; and
  • the value of any prescribed components that are to be installed as part of, or in association with, the work, this includes Fixtures, fittings including plant and equipment (there are exclusions for some types of plant and equipment, please contact us for clarification); and
  • a reasonable allocation for a profit margin; and
  • the value of any overheads; and any other component prescribed by regulations (i.e. GST)
What professional fees need to be included?

The levy is payable in relation to professional fees for any activity that involves the close oversight, supervision, management or monitoring of the performance of the building and construction work and includes:

  • Project management fees
  • Construction fees
  • Building consultancy fees
  • Onsite engineers fees
  • Overseers etc.

The levy is not payable in relation to professional fees for any activity that is of a preliminary nature and not directly associated with the close oversight, supervision, management or monitoring of the performance of building and construction work. This includes:

  • Concept Design fees
  • Feasibility studies
  • Building design fees
  • Planning fees
  • Seeking planning approval fees
  • Seeking building rules consent
  • Quantity surveying
  • Engineering design etc.

Common Questions after filling out the Levy Form

Do I need to keep records?

Per Regulation 11 of the Construction Industry Training Fund Regulations 2021.

If you are a project owner you must keep records for a period of 5 years from the commencement of work.

Who benefits and where does the money go?

Levies collected by the CITB are re-injected back into the construction industry to:

  • Provide training to skilled workers within the industry to further enhance and develop their skills through a network of endorsed training providers.
  • Promote increased productivity, career opportunities, personal satisfaction and occupational health and safety within the industry.
  • Ensure the SA construction workforce is up-to-date with the latest technologies and construction techniques.
  • Support the training of construction apprentices and trainees.
  • Avoid skill shortages.
  • Implement and manage a wide range of other programs to encourage the uptake of training in the SA building and construction industry.
  • Perform research into training and personnel needs within the industry.
  • Ensure the South Australian public is serviced by quality tradespeople.