Building permit levy

What is the building permit levy?

In order to fund the Building Control System in Victoria, the Building Act 1993 imposes a building permit levy.  The levy is paid by an applicant for a building permit  and must be paid before the the permit can be issued.  The levy is collected by the building surveyor and forwarded to the Building Commission by monthly return. 

How much is the levy?

Where the cost of the building work is greater than $10,000, the Building Act 1993 applies:

• A building permit levy (to fund the building control system in Victoria) of 0.064 cents in every dollar of the cost of building work.
• A building permit levy (to fund the dispute resolution service, Building Advice and Conciliation Victoria) of 0.064 cents in every dollar of the cost of building work
• An additional building permit levy (HIH levy) of 0.032 cents in every dollar of the cost of domestic building Please Note: As of 30 June 2010 HIH levy has been repealed but does apply in some circumstances. Click here for more detailed information
  

For example:

• For commercial building work, the levy applicable is 0.064 + 0.064, totalling 0.128 cents in every dollar of the cost of building work
• For domestic building work where HIH levy is applicable (see above), the levy applicable is 0.064 + 0.064 + 0.032, totaling 0.160 cents in every dollar of the cost of building work
• For domestic building work where HIH levy is not applicable (see above), the levy applicable is 0.064 + 0.064, totaling to 0.128 cents in every dollar of the cost of building work
  

A building permit levy is not payable if the cost of building work is $10,000 or less.