“The Building Work Levy” has been implemented on the 4th of July 2022, to fund the NSW building reforms to amplify the standards of Class 2 Buildings. This is done by applying additional measures in the design and building works of Class 2 Buildings, to help improve public confidence for potential buyers in the market. This levy applies to any Class 2 Buildings under construction, renovation or in need of an Occupation Certificate.
What is a Class 2 Building? A Class 2 Building is two or more sole-occupancy units in a building that generally consist of residents who separately live above and below each other. An apartment is a classic example of a Class 2 Building.
This levy specifically applies to:
• New Class 2 Buildings.
• The addition of new storeys to existing buildings or buildings that have a class 2 component in them, such as stores with apartments attached on the top.
• Repair renovation or protective treatment of a building valued over 150k (Including GST).
If you plan to apply for an Occupational Certificate for your building project, you must do it through the online planning portal which is found in the following link.
What is a Levy Cost? As a lot owner of a strata scheme, you are required to financially contribute towards the running/operating costs associated with your building and common property. These financial contributions are called “levies” and is a mandatory payment system from the NSW government. In regards to how much “The Building Work Levy” costs.
See the below, to determine which rate applies to your project:
• 1-3 storeys (gross floor area less than 6000m2) = $7000
• 1-3 storeys (gross floor area is greater than 6,000m2) = $8,400
• 4-8 storeys = $8,400
• 9-19 storeys = $11,000
• 20-30 storeys = $15,500
• 31 storeys or more = $21,200
NSW Fair Trading can waive/reduce or postpone the levy in certain circumstances.
Click here for more information about this condition.
Did you know? This levy is not imposed on the following conditions:
1. Where an Occupation Certificate is not required.
2. The building has fewer than 5 residential premises.
3. If it is carried out by or for NSW Land and Housing Corporation.
4. Needs external cladding repair and rectification or replacement.
5. Needs repairs, renovation, and remediation work valued at less than 150k including GST.
6. The building is exempt under the Design and Building Practitioners ACT 2020.
(The conditions listed under this exemption are found in clause 13 of this ACT. This link will lead you straight to it.)
For any questions or enquiries email us at admin@recursing-moser.103-58-32-73.plesk.page and we will be happy to assist you further.
All Information is credited and sourced from the NSW Fair Trading site.
Click here to redirect you to the NSW Fair Trading page.