Building Services Levy
A Building Services Levy (BSL) payment must be made to the local government permit authority with each application for a building permit, demolition permit or the other permit or certificate in the table below. The table shows the BSL payable for each permit or certificate. After the permit authority issues the permit or certificate it transfers the payment to the Building Commission.
|Application types||Building Services Levy|
|Over $45,000||$45,000 or less|
|Building permit||0.137% of the value of the work||$61.65|
|Demolition permit||0.137% of the value of the work||$61.65|
|Occupancy permit or building approval certificate for approved building work under ss47, 49, 50 or 52 of the Building Act||$61.65||$61.65|
|Occupancy permit or building approval certificate for unauthorised building work under s51 of the Building Act||0.274% of the value of the work||$123.30|
|Occupancy permit under s46 of the Building Act||No levy is payable||No levy is payable|
|Modification of occupancy permit for additional use of building on temporary basis under s48 of the Building Act||No levy is payable||No levy is payable|
Determining value of work
The value of unauthorised work is the current value of the work determined by the permit authority.
When estimating the value of building work, the Building Regulations 2012 require that the value is the sum of the value of the following relevant components (including GST):
- All goods (including manufactured goods forming part of the work)
- Services necessary
- Fees payable
- Overheads to be met
- Profit margin
Refund of the Building Services Levy
If a permit authority refuses to grant a permit or building approval certificate, or if an applicant withdraws an application before the permit or certificate is granted, the permit authority should refund the BSL. Soon after a permit or certificate is granted the permit authority transfers the BSL to the Building Commission and cannot make a refund.
If an application is refused or withdrawn and no permit or certificate has been issued, apply to the permit authority for a refund. If the permit authority has already transferred the BSL to the Building Commission use Form 82 to request a BSL refund from the Building Commission.
If the permit or certificate has been issued, even if not collected by the applicant, the BSL payment cannot be refunded.
Form 82 – Request for refund
This form is for use when the permit was not issued and the local government has remitted the levy payment to the Building Commission
Situations involving home indemnity insurance
When a builder is not able to complete a home building contract, the building owner usually has recourse to home indemnity insurance. Through the insurer, the owner will be able to engage another builder to complete the building work. It is expected that the second builder will need to obtain a new building permit and will pay the BSL applicable to this permit. Ordinarily, the home indemnity insurer covers this BSL payment. As precise details of insurance claims may vary, the Building Commission recommends people in this situation discuss the BSL payment with their insurer.
Local government levy remittance
The Building Services (Complaint Resolution and Administration) Regulations 2011 require a permit authority to remit the Building Services Levy collected to the Building Commissioner within 14 days after the end of the month in which it grants the permit or building approval certificate. They are required to use Form 81 – Building Service Levy remittance and tax invoice.
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