The Scheme is funded through a Ministerially determined levy on eligible Northern Territory construction work projects of at least $1 million in value. For projects that commenced on or after 7 April 2014, with a construction cost between $1 million and $5 billion, the prescribed levy rate is 0.1%.

The levy is payable by the person for whom the work is to be done, except where the work is to be done for the Australian Government or an interstate Government entity in which case the principal contractor doing the work is liable to pay the levy.

For the purposes of the Scheme, the cost of construction work is identified as being “the total contract prices for all the construction contracts in relation to the work (the contract price for the work)”. The contract price for the work includes any applicable GST.

“Construction contract” includes contracts to:

  • carry out construction work;
  • supply goods relating to construction work to the site where the construction work is being carried out;
  • provide, on or off site, professional services relating to the construction work; and
  • provide on-site services relating to the construction work.

This covers contracts for the cost of labour, materials (including prefabricated goods and installation), equipment, design, project management, consultancy and other costs that relate to the work.

For more detailed information on goods, professional services and on-site services included in the definition of “construction contract”, please refer to the specific Information Sheets available on the “Resources” webpage.

The levy is calculated as a percentage of the cost of the construction work and is payable on all eligible construction projects.

The current levy rate on projects with a construction cost between $1 million and $5 billion is fixed at 0.1%, and is calculated in accordance with the following formula:

 Total cost of construction work (inclusive of GST) xapplicable
levy % rate		=

Levy payment (GST exempt)
Note: amount rounded to nearest dollar

(with 50c to be rounded downwards)

As the levy is payable prior to the start of construction work, the initial amount for calculating the levy payable is generally based on a payer’s self-assessment of the estimated total cost of the construction work. At the date of practical completion of the project, a reconciliation of the actual total cost of construction is required once the final cost is known, and may result in an additional levy or a refund, as the case may be.

A two tier levy mechanism applies for construction projects over $5 billion. The prescribed rate of 0.1% applies to the first $5 billion, and is payable prior to the start of construction work. A project specific levy determined by the relevant Minister, after consideration of a report prepared by the Scheme actuary, applies to the project cost component that exceeds $5 billion. The project specific levy component is payable following completion of the project.

As part of NT Build’s internal audit program, construction projects may be subject to routine audit.

Exemptions Applicable

The levy does not apply to work:

  • on single detached dwellings, including related private garages, carports and sheds;
  • for which the total contract price for the construction work is less than $1 million in value; or
  • undertaken for not-for-profit organisations in respect of voluntary labour or donated materials.

The levy must be paid to NT Build before construction work starts.

NT Build can order the work to stop. Interest can be charged on late payments. NT Build can prosecute for failure to pay the levy or failure to comply with notices to stop work.

Yes. The NT Government must pay the levy for work done for NT Government agencies or Government Owned Corporations such as the Power Water Corporation.

Yes. There are no relevant exemptions set out in the Construction Industry Long Service Leave and Benefits Act 2005. It must be remembered that the workers undertaking these construction work projects may be registered under the Scheme and therefore accruing long service leave credits. The levy funds the Scheme.

However, it should be noted that the levy does not apply to construction work attributed to voluntary labour or donated materials.

NT Build uses the revenue to fund the payment of long service leave benefits accrued by construction workers in respect of service days worked on Northern Territory construction projects. More detailed information can be found in the NT Build Annual Reports.

The prescribed levy rate may be subject to change from time to time, via Government regulatory amendment.

The rate has been reduced progressively over time from 0.5% at the Scheme’s commencement, to the current rate of 0.1%, through a series of Regulation amendments, with the result that for projects that started:

  • on or after 7 April 2014, regardless of completion date, the levy rate of 0.1% applies;
  • from 1 April 2012 to 6 April 2014, regardless of completion date, the levy rate of 0.3% applies;
  • from 1 July 2009 to 31 March 2012, regardless of completion date, the levy rate of 0.4% applies;
  • before 1 July 2009, regardless of completion date, the levy rate of 0.5% applies.

For further detail refer to Construction Industry Long Service Leave and Benefits Regulations 2005.