Who has to pay the levy?

The project owner must pay the levy.

Who is the project owner?

The project owner in most cases is the builder or prime contractor (the person engaged to carry out, or cause to be carried out, the building work). 

If no builder has been appointed at the time of paying the levy then the person who will benefit from the work (usually the property owner) will be the project owner.

How is the levy calculated?

The levy is calculated on the contract price of the building or construction work in South Australia where the value of the work is over $40,000 (inc. GST). The levy is applied at 0.25% or 1/400th of the contract price (including GST).

If there is not contract(s) then the levy is paid on 0.25% of the reasonable market value of the building or construction work including GST.

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 (listed on the About the Levy webpage). If you are unsure if your project constitutes building or construction work please contact us.

Is the levy paid on Development Cost?

The levy is paid on the value of 'Building or Construction Work' as defined by the Act - this includes fitout. Development cost and 'Building or Construction Work' value can be different - ensure you include fitout and actual value of your project.

What is the levy paid on? What is the value of the estimated or final building or construction work?

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. The relevant part of the Act is Schedule 1A (listed on the About the Levy webpage).

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.
When is the levy required to be paid?

The project owner is required to pay the CITF levy on the estimated (GST inclusive) building and construction value, before obtaining building approval, or if no building approval is required, before commencing construction.

How do I pay the levy?

You can lodge your levy online

The three payment methods are credit card, funds transfer or cheque.

What if the project changes?

On completion of a project, if the total value of the works has increased by $50,000 or more the project owner will need to pay an adjustment amount. If the value 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.

What happens if my project is cancelled or is no longer proceeding?

You can apply for a refund of the CITF levy if the project is cancelled by filling in the application form.

The application form requires completion by the project owner and requires the following to be attached:

  • Proof of original payment (receipt)
  • Confirmation from local council confirming withdrawal of building approval (email/letter)
  • Cancellation letter between client (if applicable)
  • Reason for cancellation

Upon receipt of the above, additional information may be requested to ensure the Board is satisfied that the levy refund is appropriate and can be made to the project owner.

Why am I paying 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 Act 1993 “The Act”. In accordance with the Act, the operations of the CITB are funded by a levy of .25% (1/400th) on building and construction work over $40,000 carried out in South Australia.

Why did the building and construction industry request a levy?

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.

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.
I didn't keep records of my project. What now?

If you are a project owner you must keep records or face potential penalty or fine.

Regulation 11 of the Construction Industry Training Fund Regulations 2021 provides:

“(1) Pursuant to section 37(2) (d) of the Act, a person must keep the following records in relation to building or construction work for which he or she is the project owner and which gives rise to a liability to pay a levy under the Act for a period of 5 years from the commencement of that work.