Surge in building activity fuels $5 million saving for project owners

A levy on all construction projects over $40,000 in South Australia will be reduced in a $5 million savings boost for homeowners, businesses and project owners as the state faces a third year of COVID-19 challenges.

The Construction Industry Training Board (CITB), which administers levy payments via the Construction Industry Training Fund (CITF), recommended a 0.05 per cent reduction to the current levy rate, to be reviewed annually.

The recommendation, which requires variation to the Regulations, has been supported by the Marshall Government. It is among a raft of industry-focused initiatives introduced by a reformed CITB during the past 18 months.

For homeowners the levy reduction will provide an average saving of around $160, while commercial project owners will pocket about $615 on an average build. Those undertaking civil works can expect an average saving of $490 per project. The levy rate reduction will result in total savings for all project owners of around $5.4m a year.

The new levy rate of 0.20 per cent on building and construction activity over $40,000, to come into effect from 1 July 2022, brings South Australia into line with Western Australia, Tasmania and the ACT.

CITB Presiding Member Maree Wauchope said increased building and construction activity created a greater capacity for the CITB to provide the targeted support and training required by industry while also allowing for concessions, such as a reduced levy rate.

“As demand in building and construction activity surges across South Australia, including in regional areas, the CITB has been able to respond with a reduced levy rate to assist the industry given the challenging economic environment and financial landscape created by ongoing COVID-related disruptions,” Ms Wauchope said.

“An unprecedented level of construction activity, which is expected to continue this year, means the levy rate can be adjusted without affecting the delivery of specialised programs and support for training and skills development in the construction industry.

“A record amount of funding continues to be invested in crucial areas such as apprenticeship support payments for employers, affordable training programs and linking further education to in-demand construction careers.”

Minister for Innovation and Skills David Pisoni said reducing the levy was part of the Marshall Government’s ongoing commitment to lowering costs to business and consumers to drive economic growth and job creation.

“The local construction industry has been instrumental in South Australia having the fastest growing economy which in turn has delivered record numbers of people in jobs and the lowest unemployment rate in the state’s history,” said Minister Pisoni.

“The Marshall Government’s $17.9 billion infrastructure investment has enabled South Australia to navigate the impact of the global pandemic as well as anywhere in the world.”