Before You Build
CITB Training Levy
Every building or construction project that has an estimated value of or exceeds $15,000 attracts a .25% levy which is awarded to the Construction Industry Training Fund (Board)?
Generally the Project Owner will be either a Home Builder or contractor or the owner of the land where no builder has been chosen that is, ie: an owner builder or land developer. Whoever is determined to be the ‘Project Owner' is liable to pay the levy on that building or construction work. This levy must be paid prior to the commencement of any work or before gaining a council's building approval - Council must have proof of payment prior to allocating building approval.
This levy was introduced by the Federal Government in 1993 to ensure the training of our future tradespeople. Even today there is a consequential need to bring in qualified tradespeople as immigrants from other countries to fulfil the shortage of trades skills in Australia. However, due to the role of the CITB, whose sole purpose is to ensure skilled training for young potential tradespeople, there are now qualified Trade Organizations with the resources to assist and support a diverse range of apprentices who, on completion of their training, become fully qualified and licensed members of their industry.
Bearing this in mind it is now obvious the importance of paying the CITB levy and supporting our future generations of tradespeople.
Generally Council's are able to collect on behalf of the CITB or payment may be made direct to the CITB or online through the CITB website http://www.citb.org.au/levy/declaration.asp
Non payment of this levy attracts a maximum penalty of $5,000 plus twice the amount of levy required to be paid.
It may be possible in some circumstances, by application in monthly instalments, or in other periodical instalments determined by the Board, in accordance with a scheme established by the Board.
A project owner must also notify the Board within three months of completion of the building project if the actual value of the work has exceeded the projected value by $25,000. Non compliance of this could attract a maximum penalty of $5,000.
False or misleading documentation is also an offence and may attract a penalty of up to $10,000.
Inclusions:
Building or construction work includes:
Construction, erection, alteration, repair, renovation, demolition or
removal of - a building or structure, any road, street, parking area, footpath, thoroughfare (for pedestrians or vehicles), kerbing, guttering, landscaping, retaining wall, wharf, etc. Additionally any swimming pool , dam - or other embankment or structure for the catchment, collection,
storage, control or diversion of water; a lift or escalator; air-conditioning, ventilation or refrigeration system or equipment, on site electrical or mechanical services work, the laying, placing or installing of pipes, asbestos removal, or excavation work.
Exclusions:
The following do not constitute building or construction work for the purposes of the Act:
maintenance or repair work carried out - by a self-employed person for his or her own benefit;
or -
by an employee for the benefit of his or her employer - where the principal business activity of the self-employed person, or the employer (as the case may be) does not consist of building or construction work;
The above information is for general purpose only for full details and information regarding inclusions, exclusions, definitions or evaluating work please click here to refer to the Construction Industry Training Fund Act 1993
Click here to read more about what the CITB do with your levy funds
