QLeave Levy to increase from 1 July 2020

10 June 2020

The building and construction industry portable long service leave levy is increasing.

From 1 July 2020 a levy rate of 0.575% will apply to all projects in Queensland where the total cost of work is $150,000 or more (excluding GST).

In a win for residential and commercial builders the levy will continue to exclude GST in the calculation of project size. To ensure a level playing field, the concessional levy rate for building and construction work over $1.169 billion will be removed.

The total levy has been increased to maintain the long-term sustainability of the scheme is made up of:

• Portable long service leave levy – 0.35%
• Work health and safety levy – 0.125%
• Construction Skills Queensland levy – 0.1%

Examples of the additional cost impact of the new levy rate will have on projects is provided below.

While Master Builders lobbied initially for no increase, we will now be expressing our disappointment regarding the timing of introducing an extra cost. The industry is already under incredible strain; and with the additional social distancing and hygiene measures required in response to COVID-19, this is just another burden to wear. We urge QLeave and the Queensland Government to consider delaying the introduction of this increase, as has been done with the waste levy.

Want more information?

Contact Master Builders' team of employment & wages experts and we can assist you to ensure the new rates are implemented within your business. For further information watch the QLeave levy video, contact 1300 QLEAVE or email levies@qleave.qld.gov.au.