The threshold at which Queensland building and
construction work become leviable has changed.
Are you engaged in building and construction work in Queensland?
If so, the Construction and Tourism (Red Tape Reduction) and Other
Legislation Amendment Bill 2014 is relevant to you.
Introduced into the Queensland Parliament on 18 March 2014, the
Bill proposes amendments to the Building and Construction Industry
(Portable Long Service Leave) Act 1991 (Qld) which, since 1992, has
imposed a number of levies on the undertaking of building and
construction work in Queensland.
At present, persons for whom building and construction work is
done, are liable to pay levies totalling 0.525% of the total cost
of work where the cost is expected to exceed $80,000. These levies
building and construction industry training levy of 0.1%;
long service leave levy of 0.3%; and
work health and safety levy of 0.125%.
One of the objectives of the Bill is to reduce red tape and
regulatory complexity for employers in the construction industry.
These reforms arise following a recent review of the QLeave Scheme
and extensive consultation between the Government and industry
Changes to what is included in the cost of building and
In relation to the current QLeave Scheme, the most significant
changes relate to the calculation of the relevant cost of building
and construction work on which the levies are imposed. From 1 July
2014 the leviable cost of building and construction work for a
not include any GST that is paid or payable on building and
construction work; and
not include the costs that relate directly or indirectly to the
preparation of environmental impact statements and feasibility
studies relating to the project.
The Bill also clarifies that the total leviable cost of building
and construction work for a project includes the direct and
indirect cost of all materials that are used for work in Queensland
but which might have been manufactured, purchased, acquired or
sourced from outside Queensland (ie. interstate or overseas).
Changes to the rate of the levies payable on building and
The Government has also announced changes to rate of the levies
imposed on building and construction work. At present the rate of
the long service leave levy is 0.3%. From 1 July 2014 this will be
reduced to 0.25%.
In addition, the current threshold of $80,00 at which liability
for paying the levies arises will be increased to $150,000.
Finally, for projects over $1 billion, a tiered levy rate will
These proposed changes to the rates and liability threshold are
not set out in the Bill, but will be made by regulation which will
amend the current Building and Construction industry (Portable Long
Service Leave) Regulation 2013 (Qld).
The proposed amendments to the QLeave Scheme do not purport to
have any retrospective application. This means that existing
notifications of building and construction work will not be
affected. Rather, once the legislation is passed, the changes will
apply to all projects notified to QLeave on or after 1 July
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
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