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.
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.
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.
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
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.