Is the levy paid on development costs and professional fees?

The levy is paid on the total value of ‘Building or Construction Work’ as defined by the CITF Act, which may differ from the development cost. For example, demolition and fit-out costs for fixed furniture and fittings are included in the levy.

The levy applies to professional fees related to activities involving close oversight, supervision, or management of the building and construction work, such as:

• Project management fees
• Construction fees
• Building consultancy fees
• Onsite engineers’ fees
• Oversight fees

It does not apply to fees for activities that are preliminary or not directly related to the oversight of building and construction work, including:

• Concept design fees
• Feasibility studies
• Building design fees
• Planning fees
• Quantity surveying.