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
Some key benefits are:
- doorways2construction VET program
- Personal Protective Equipment (PPE) packs
- Driving lessons
- Subsidised course fees
Apprentices and Employers
- Apprentice incentives (e.g., work equipment vouchers)
- On and off job employer funding
- Funding for various equality and diversity initiatives
- Short course subsidised training
- tradie2trainer program
- Ensure the South Australian public is serviced by quality tradespeople.
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.
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.
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 if there is more than one contract for the building and construction 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.
Do I need to do anything upon project completion?
Section 26 of the CITF Act requires a project owner to notify the Board of the actual value of the building or construction work, no later than three months after project completion.
- If the total value of the works has increased by $50,000 or more the project owner will need to pay an additional levy amount.
- If the value of the works has decreased by $50,000 or more the project owner may be entitled to a refund.
CITB automatically sends reminders to project owners to assess the final value of projects, via email 60 days after the project completion date. CITB refers to this as the ‘Statement of Completion’ (SOC) process.
What if the project owner changes, i.e. changed builder?
What if the land or 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.
If the land and/or property is sold without development plans, then you can apply for a levy refund.
When am I entitled to a refund?
You may be eligible for a levy refund if your construction project:
- Was cancelled or didn’t go ahead
- Levy lodgement or payment was duplicated
- Completed value has decreased by $50,000 or more
If you meet any of the above criteria please email our Levy Support team with ‘Refund’ and your ‘Project ID number’ in the subject line.
A Refund Application Form requires the following supporting documentation:
- Development application (DA) withdrawn/cancelled on the PlanSA portal (link). Please provide Application ID number or advise CITB if DA has Lapsed; or Confirmation from local council confirming withdrawal of building approval (email/letter) This is only applies to applications made prior to March 2021.
- Levy Notice or Receipt of both duplicated lodgements or payment information showing the duplicate payment
- Suitable documentation that confirms the projects final completion value and how the sum of projects final value was reached for e.g. Invoices.
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 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 PlanSA or local council confirming withdrawal of building approval (email/letter)
- Reason for cancellation.
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 levy amount
Is the levy paid on Development Cost?
The levy is paid on the total 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.
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.
How is the levy calculated?
The levy is calculated on the estimated project value of building or construction works greater than $40,000 (inc.GST).
The levy is applied at 0.25% of the estimated project value.
In any other case an estimate of the reasonable market price for the work is levied at 0.25%. Use our Levy Calculator to estimate the amount payable.
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.