Building Services Levy
The amount of Building Services Levy payable will vary according to the type of application and, where applicable, the value of building works undertaken. The table below shows the application types that attract BSL and how much should be paid to the local government permit authority.
|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 s47, 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|
Permit authorities pay the levy to Building and Energy for certificates or permits that have been issued or granted. More information for permit authorities on remittance to Building and Energy is provided below.
Determining value of work
When estimating the value of building work, Schedule 1 of the Building Regulations 2012 requires 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; and
- Profit margin.
More information can be found in Industry Bulletin 76 – Estimating the value of building work.
The value of unauthorised work is the current value of the work as determined by the permit authority.
Local government levy remittance
The Building Services (Complaint Resolution and Administration) Regulations 2011 requires a permit authority to remit building services levy to the Building Commissioner within 14 days after the end of the month in which it issues or grants a permit or building approval certificate. Permit authorities are required to use ‘Form 81 – Building Services Levy remittance advice’ and to provide a supporting report which provides a breakdown of the remittance. The supporting report provided by permit authorities must include the following information:
- Permit number
- Site address
- Estimated value of works
- Amount of building services levy collected
- Date of issue or grant
Form 81 – Building Services Levy remittance advice
This form is to be used by Permit authorities when remitting BSL for permits/certificates that have been granted or issued. The supporting report detailing the total number of permits and value(s) should correlate with the figures submitted in Form 81.
Refund of the Building Services Levy
Under Regulation 16 of the Building Services (Complaint Resolution and Administration) Regulations 2011, 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 issued or granted, the permit authority must refund the building services levy.
Once a permit or certificate is granted or issued the permit authority forwards the building services levy to Building and Energy. The levy cannot then be refunded unless the Building Commissioner assesses that there are exceptional circumstances which might qualify for a refund. Guidance on what might be considered exceptional circumstances can be found in the ‘Exceptional Circumstances – Framework’ document below.
Form 82 – Request for refund
This form should be used when a permit or certificate was issued or granted, but there are exceptional circumstances which might qualify for a refund of the levy
Exceptional circumstances – framework
This document is to provide some guidance on what the Building Commissioner might consider being exceptional circumstances that would qualify for a refund of the levy
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