The Construction Industry Training Board Levy (CITB Levy) threshold is set to rise from $15,000 to $40,000 from 1 July 2017.
The result will be that more minor building and construction projects progressing through the Council development process will not be required to pay the CITB Levy.
The CITB Levy is established under the Construction Industry Training Fund Act 1993 (Act) and is paid on building and construction activity across the State. Payments are funded back into the industry in the form of discounts and subsidies for construction workers, apprentices and trainees to improve and encourage skills development in the industry.
The CITB Levy is charged at 0.25% of the value of the construction work. The increase in the threshold follows a review by the CITB and is designed to streamline and simplify the levy system which will effectively result in the minimum levy payable to the CITB increasing from $38 to $100 resulting in fewer smaller payments for the CITB to process.
The increase in the threshold means that Councils will only need to be provided with proof of the payment of the CITB Levy for building and construction work valued at over $40,000 as part of the development application process. Councils may need to update information on their websites or development application forms that make reference to the old CITB Levy threshold.
The reduction will additionally reduce the number of CITB Levy payments required to be processed by Councils that are appointed as collection agencies under the Act.
The change has been achieved by the addition of a new Regulation 5A in the Construction Industry Training Fund Regulations 2008 that increases the exemption limit in section 23 of the Act.
If you have any queries or require any assistance as to the above, please contact Chris Woodard on 8113 7112 or mailto:email@example.com or Victoria Shute on 8113 7104 or firstname.lastname@example.org