The Construction Training Fund (CTF) fee is a levy or charge imposed on construction projects in certain states or territories in Australia. The levy is collected by the CTF and is used to fund training initiatives and support the development of the construction industry workforce.
The CTF levy is typically calculated as a percentage of the total value of a construction project. The specific levy rate can vary depending on the state or territory where the project is located. The levy is generally applied to the total value of construction work, including materials, labor, and other associated costs.
The purpose of the CTF levy is to generate funds that are then used to provide subsidies, incentives, and financial support for training programs and initiatives within the construction industry. These funds aim to enhance the skills, qualifications, and capabilities of individuals working in the industry and promote the ongoing growth and development of the workforce.
The levy is calculated at 0.2% of the value of construction work (including GST) where the total estimated value of the work is more than $20,000.00.
The levy applies to construction work whether or not a building permit is required and must be paid before construction work starts. The levy must be paid by the ‘project owner’ which is defined as:
- The person or entity that holds a building permit in respect of the construction work; or
- The person or entity that issued a contract to carry out the works; and/or
- The person or entity receiving direct benefit of the construction work.
Where a building permit is not required for works to which the levy is applied, the project owner must notify the CTF of the project and its estimated value and pay the levy before construction work starts. Examples where a building permit is not required include:
- Maintenance work; or
- Engineering construction work, such as bridges or roads; or
- Where the Building Act 2011 enables certain types of construction work to commence without the requirement for a building permit.
Penalties may apply if construction work starts prior to payment of the levy.
It’s important to note that the CTF levy is administered at the state or territory level, and the specific regulations and requirements can differ across jurisdictions. To obtain accurate and up-to-date information regarding the CTF levy in your area, it is recommended to visit the official website of the CTF authority in your state or territory or contact them directly.