Building and Construction Industry Training Fund and Levy Collection Act 1990 (Western Australia)

The Building and Construction Industry Training Fund and Levy Collection Act 1990 establishes a statutory training fund for the building and construction industry in Western Australia, and creates a statutory body to administer that fund and collect a training levy. The Act (read as one with the Building and Construction Industry Training Levy Act 1990, see the compilation note) (a) establishes the Building and Construction Industry Training Board (the Board) as a corporate entity to administer the Fund and collect levy moneys (ss 6, 7, 17); (b) prescribes who is liable to pay the levy and when it must be paid (s 21 and Sch. 2); (c) sets out the Board’s role in preparing and implementing annual operational plans to allocate Fund resources to training, accreditation, research and related priorities (s 8); and (d) confers enforcement and investigative powers on authorised persons and imposes criminal and civil penalties for non‑compliance (ss 28, 29, 30).

The Act makes levy payment a precondition to commencing construction work where a permit is required (s 21(1)(a)), and requires notification and payment to the Board where no permit is required (s 21(1)(b)). It provides for post‑completion adjustments and refunds where the actual value varies by $25 000 or more after inflation adjustment (ss 21(1)(c); 22; 23). It allows for instalment payment of levies for very large projects (s 21A), prescribes penalties for late payment calculated at a prescribed rate (s 24), and provides civil recovery mechanisms (s 25).

Official rationale statements in the Act are clear: the Fund is to be used “to improve the quality of training and to increase the number of skilled persons in the building and construction industry” (Long title; s 8(1)). The statute gives the Board responsibility to allocate Fund resources to apprenticeships, supplementary training, technology and work health and safety training, recognition of existing skills, course accreditation and training innovation and research (s 8(1)(a)-(f)). The Minister retains direction power over the Board, and can approve or require amendments to the Board’s operational plans (s 9; s 8(4)-(7)).

CrestWestern Australia

Building and Construction Industry Training Fund and Levy Collection Act 1990

Western Australia

Building and Construction Industry Training Fund and Levy Collection Act 1990

Contents

Part 1 — Preliminary

Short title 2
Commencement 2
Terms used 2

3A. Building and construction industry 4

Act binds Crown 7
Application of Act to off‑shore construction work 7

Part 2 — Building and Construction Industry Training Board

Division 1 — Establishment, functions and powers

Board established 10
Board, functions of 10
Operational plans 11
Minister, directions by 12

Division 2 — Membership, constitution, proceedings, etc.

Members 13
Deputy members 14
Relationship to Public Service 15
Members, protection of 15
Pecuniary interests, disclosure of 15
Board, constitution and proceedings of (Sch. 1) 16

Division 3 — Staff

Staff 16

Part 3 — Fund

Building and Construction Industry Training Fund 17
Fund, application of 17
Temporary investment of moneys 18
Power to borrow from Treasurer 18

Part 4 — Collection of levy

Payment of levy 19

21A. Payment of levy by instalments 20

21B. Time for payment of instalments 22

Adjustment of amount paid after completion of construction work 22
Cancellation of construction work, refund payable 23
Penalty for late payment 23
Recovery of levy and other amounts 24

25A. Minister may establish criteria etc. for reduction in, or exemption from, levy 24

25B. Applying for and granting reduction in, or exemption from, levy 25

25C. Dissatisfied applicant may appeal to Minister 25

Part 5 — Miscellaneous

Application of Financial Management Act 2006 and Auditor General Act 2006 27
Collection agencies 27
Authorised persons, appointment and functions of 27
Prosecutions of offences 28
Offences 29
Regulations 30
Review of Act 30

Schedule 1 — Members and proceedings of the Board

Term of office 32
Members, remuneration and allowances of 32
Proceedings not affected by irregularities 32
Vacation of office 33
Meetings 33
Who presides at meetings 33
Voting 34
Quorum 34
Minutes 34
Common seal and execution of documents by Board 34

Schedule 2 — Estimating the value of construction work

Terms used 36
Estimated value for s. 21(1)(a) and (b) 36

Notes

Compilation table 38

Other notes 39

Defined terms

Western Australia

Building and Construction Industry Training Fund and Levy Collection Act 1990

An Act to establish a fund to be used to improve the quality of training and to increase the number of skilled persons in the building and construction industry, to establish a Building and Construction Industry Training Board to administer the fund and to collect the building and construction industry training levy, and for connected purposes.

Part 1 — Preliminary

1. Short title

This Act may be cited as the Building and Construction Industry Training Fund and Levy Collection Act 1990.

2. Commencement

This Act shall come into operation on the day on which the Building and Construction Industry Training Levy Act 1990 comes into operation.

3. Terms used

(1) In this Act, unless the contrary intention appears —

authorised person means a person appointed under section 28(1);

Board means the Building and Construction Industry Training Board established under section 6(1);

building and construction industry has the meaning given in section 3A;

chairperson means the chairperson of the Board appointed under section 10(3);

collection agency means a person or body appointed under section 27(1);

construction work means all of the work carried out in the State or as referred to in section 5 —

(a) that is included in the definition of building and construction industry; or

(b) that is building work or demolition work as defined in the Building Act 2011 section 3,

but does not include any work that is prescribed as excluded from this definition;

Fund means the Building and Construction Industry Training Fund established under section 17;

levy means the levy imposed by the Building and Construction Industry Training Levy Act 1990;

member means a member of the Board appointed under section 10(1);

permit, except in section 5(2)(e), means a building permit or a demolition permit as defined in the Building Act 2011 section 3;

project owner in respect of any construction work means —

(a) the person who is required to hold a permit in respect of that construction work; or

(b) where the construction work is carried out by the State, or an agent or instrumentality of the State, the person or organization designated in writing by the Minister to be the project owner or, if the State or an agent or instrumentality of the State has engaged another person or body, other than as an employee, to carry out or cause to be carried out all of the construction work, the person or body so engaged; or

(i) the person or body for whose direct benefit construction work exists upon its completion; or

(ii) if the person or body referred to in subparagraph (i) has engaged another person or body, other than as an employee, to carry out or cause to be carried out all of the construction work, the person or body so engaged.

(2) For the purposes of this Act, construction work shall be regarded as commencing —

(a) where a permit is required for the construction work, when any work the subject, or that is required to be the subject, of a permit commences;

(b) if paragraph (a) does not apply, where the construction work is to be carried out under a contract executed after this Act comes into operation, when any of that construction work commences;

(i) where the construction work is to be carried out under a contract executed before this Act comes into operation; and

(ii) the project owner, after this Act comes into operation, engages another person or body, other than as an employee, to carry out or cause to be carried out any part or stage of that work,

when any of the construction work that the person or body is engaged to carry out or cause to be carried out commences;

(d) if paragraph (a), (b) or (c) does not apply, when the construction work is prescribed as commencing.

(3) Notwithstanding subsection (2), levy is not payable in relation to construction work for which a building licence or a demolition licence under the Local Government (Miscellaneous Provisions) Act 1960 was issued before this Act comes into operation.

[Section 3 amended: No. 14 of 1996 s. 4; No. 42 of 1996 s. 71(1); No. 6 of 1998 s. 4(1); No. 24 of 2011 s. 159(2)‑(7); No. 12 of 2025 s. 22.]

3A. Building and construction industry

(1) Building and construction industry means the industry —

(a) of carrying out on a site the construction, erection, installation, reconstruction, re‑erection, renovation, alteration, demolition or maintenance of or repairs to any of the following —

(i) buildings;

(ii) swimming pools and spa pools;

(iii) roads, railways, airfields or other works for the passage of persons, animals or vehicles;

(iv) breakwaters, docks, jetties, piers, wharves or works for the improvement or alteration of any harbour, river or watercourse for the purposes of navigation;

(v) works for the storage or supply of water or for the irrigation of land;

(vi) works for the conveyance, treatment or disposal of sewage or of the effluent from any premises;

(vii) works for the extraction, refining, processing or treatment of materials or for the production or extraction of products and by‑products from materials;

(viii) bridges, viaducts, aqueducts or tunnels;

(ix) chimney stacks, cooling towers, drilling rigs, gas‑holders or silos;

(x) pipelines;

(xi) navigational lights, beacons or markers;

(xii) works for the drainage of land;

(xiii) works for the storage of liquids (other than water) or gases;

(xiv) works for the generation, supply or transmission of electric power;

(xv) works for the transmission of wireless or telegraphic communications;

(xvi) pile driving works;

(xvii) structures, fixtures or works for use on or for the use of any buildings or works of a kind referred to in subparagraphs (i) to (xvi);

(xviii) works for the preparation of sites for any buildings or works of a kind referred to in subparagraphs (i) to (xvii);

(xix) fences, other than fences on farms;

(b) of carrying out of works on a site of the construction, erection, installation, reconstruction, re‑erection, renovation, alteration or demolition of any buildings or works of a kind referred to in paragraph (a) for the fabrication, erection or installation of plant, plant facilities or equipment for those buildings or works;

(c) of carrying out of work performed by employees engaged in the work referred to in paragraph (a) or (b) and that is normally carried out on site but which is not necessarily carried out on site.

(2) However, building and construction industry does not include the following —

(a) the carrying out of any work on ships;

(b) the maintenance of or repairs or minor alterations to lifts or escalators;

(c) the carrying out of maintenance or repairs of a routine or minor nature by employees for an employer, or another person under an arrangement with a labour hire agency, who is not substantially engaged in the industry described in subsection (1).

Note for this section:

This section is based on the definition of construction industry in the Construction Industry Portable Paid Long Service Leave Act 1985 section 3(1) as in force immediately before the commencement of the Construction Industry Portable Paid Long Service Leave Amendment Act 2025 Part 5.

[Section 3A inserted: No. 12 of 2025 s. 23.]

4. Act binds Crown

This Act binds the Crown in right of the State and also, so far as the legislative power of the State extends, in all its other capacities.

5. Application of Act to off‑shore construction work

(1) Where any construction work is carried out —

(a) partly within the State and partly within an area to which this subsection applies; or

(b) wholly or partly in an area to which this subsection applies, and —

(i) facilities for servicing or supporting that construction work are maintained in the State by or on behalf of the project owner concerned; or

(ii) the project owner concerned is connected with the State; or

(iii) the construction work is carried on from, or on, or by means of, an aircraft, or from, or by means of, a ship or vessel certificated, registered, or licensed under a law of the State or by a department of the Public Service of the State or an agent or instrumentality of the State or any other body established under a law of the State, or which is required to be so certificated, registered, or licensed; or

(iv) the construction work is carried on from, or on, or by means of, a rig or other structure, installation, or equipment, the use or function of which is regulated by the State or by the State and the Commonwealth, or is required to be so regulated; or

(v) the construction work is authorised or regulated by the State or by the State and the Commonwealth; or

(vi) the construction work is carried on under a law of the State,

then this Act applies to and in relation to that construction work.

(2) A project owner shall, for the purposes of subsection (1), be connected with the State if that project owner —

(a) is domiciled in the State; or

(b) is resident in the State, normally or temporarily; or

(i) registered, incorporated or established under a law of the State; or

(ii) taken to be registered in the State; or

(iii) a related body corporate, for the purposes of the Corporations Act 2001 of the Commonwealth, of such a body;

(d) in connection with the construction work concerned, has an office or a place of business in the State; or

(e) is the holder of a licence, lease, tenement, permit, or other authority, granted under a law of the State or by a department of the Public Service of the State or an agent or instrumentality of the State or any other body established under a law of the State under which the construction work is carried on.

(3) The areas to which subsection (1) applies are —

(a) that area situate west of 129° of East Longitude reckoning from the meridian of Greenwich, that is part of the areas known as and comprised within —

(i) the Australian fishing zone as defined by the Commonwealth Fisheries Act 1952 1; or

(ii) the continental shelf, within the meaning of the Convention on the Continental Shelf a copy of which in the English language is set out in Schedule 1 to the Commonwealth Petroleum (Submerged Lands) Act 1967 2;

(b) any other area seaward of the State to which from time to time the laws of the State apply or, by a law of the Commonwealth, are applied.

(4) For the purposes of any proceedings under this Act an averment in the application or process —

(a) that a project owner was, pursuant to subsection (2), at a specified time or during a specified period or at all material times connected with the State; or

(b) that any conduct, event, circumstance, or matter occurred, or that any place is situate, within an area referred to in subsection (3),

shall, in the absence of proof to the contrary, be deemed to be proved.

(5) Effect shall be given to subsections (1), (2) and (3) only where this Act or any provision of this Act would not otherwise apply as a law of the State to or in relation to any person, circumstance, thing or place.

[Section 5 amended: No. 10 of 2001 s. 32.]

Part 2 — Building and Construction Industry Training Board

Division 1 — Establishment, functions and powers

6. Board established

(1) There is established by this subsection a body to be known as the Building and Construction Industry Training Board.

(2) The Board is a body corporate with perpetual succession and a common seal and is capable of —

(a) acquiring, holding and disposing of real and personal property; and

(b) suing and being sued; and

(3) The Board does not represent, and is not an agent or servant of, the Crown.

7. Board, functions of

(1) The functions of the Board are —

(a) to ensure the efficient collection of levy; and

(b) to control and administer the Fund; and

(ba) by the allocation of resources of the Fund, to provide for, or support, training programmes and research the aim of which is to improve the quality of training, and to increase the number of skilled persons, in the building and construction industry; and

(d) to implement operational plans approved by the Minister under section 8.

(2) The Board may do all things necessary or convenient to be done for, or in connection with, the performance of its functions.

[Section 7 amended: No. 6 of 1998 s. 5.]

8. Operational plans

(1) The Board shall formulate and prepare in writing, in respect of each financial year, an Annual Operational Plan (an operational plan) the aim of which is to improve the quality of training and to increase the number of skilled persons in the building and construction industry (the industry) by the allocation of resources of the Fund to programmes that support —

(a) apprenticeships and other forms of entry level training for employment in the industry;

(b) supplementary training for those already qualified to work in the industry;

(d) the recognition, for the purposes of employment in the industry, of persons with existing skills, knowledge and aptitude appropriate to the industry;

(e) the accreditation of training courses for employment in the industry or that are otherwise appropriate to the industry;

(f) innovations in training in the industry and research relating to the levels of competency in, and the training needs of, the industry.

(2) An operational plan shall set out the priorities the Board proposes for the allocation of resources of the Fund during the financial year concerned to the programmes supported by the operational plan and to the administration of the operational plan.

[(3) deleted]

(4) The Board shall submit an operational plan, together with such other submissions (if any) that it considers appropriate, to the Minister for approval.

(5) The Minister may request an operational plan to be amended or revised prior to approval.

(6) If the Minister approves an operational plan the Minister shall give notice in writing of the approval to the Board.

(7) An operational plan shall have effect from the date specified in the notice of approval.

(8) The Board may with the approval of the Minister vary an operational plan and the operational plan as so varied has effect accordingly.

[Section 8 amended: No. 42 of 1996 s. 71(1); No. 6 of 1998 s. 6; No. 36 of 2020 s. 350.]

9. Minister, directions by

(1) The Minister may give directions in writing to the Board with respect to its functions or powers, either generally or with respect to a particular matter, and the Board shall give effect to any such direction.

(2) The text of any direction received by the Board under subsection (1) shall be included in the annual report submitted by the accountable authority of the Board under Part 5 of the Financial Management Act 2006.

[Section 9 amended: No. 77 of 2006 Sch. 1 cl. 17(1).]

Division 2 — Membership, constitution, proceedings, etc.

10. Members

(1) The Board shall consist of 9 members appointed by the Minister after consultation with the bodies known as —

(a) the Master Builders’ Association of Western Australia (Union of Employers Perth); and

(b) the Housing Industry Association Limited (Western Australian Division); and

(d) Master Plumbers and Gasfitters Association of Western Australia; and

(e) the Master Painters Decorators and Signwriters Association of Western Australia; and

(f) the National Electrical and Communications Association of Western Australia; and

(g) the Construction, Forestry, Mining and Energy Union of Workers; and

(h) the Civil Contractors Federation of Western Australia; and

(ia) the Australian Workers’ Union, West Australian Branch, Industrial Union of Workers; and

(ib) the Communications, Electrical and Plumbing Union of Western Australia; and

(i) the Australian Manufacturing Workers’ Union; and

(j) the Chamber of Minerals and Energy of Western Australia; and

(k) the Association of Mining and Exploration Companies; and

(l) the Australian Petroleum Production and Exploration Association.

(2) The Board must include at least —

(a) 1 member with experience or expertise in the construction of facilities associated with the mining industry; and

(b) 1 member with experience or expertise in the construction of facilities associated with the petroleum industry; and

(3) The Minister must appoint 1 of the members referred to in subsection (2)(c) as the chairperson of the Board.

(4) The regulations may amend subsection (1) in order to reflect a change in the name of any body referred to in that subsection.

[Section 10 inserted: No. 6 of 1998 s. 7(1); amended: No. 47 of 2010 s. 4; No. 23 of 2020 s. 4.]

11. Deputy members

(1) The Minister may appoint a deputy member to act in the place of a member where the member is unable to act due to sickness, absence or other cause, and while so acting the appointee has all the functions and entitlements of a member.

[(2) deleted]

(3) An appointment under subsection (1) may be revoked by the Minister at any time.

(4) No act or omission of a person acting in place of another under this section shall be questioned on the ground that the occasion for the acting had not arisen or had ceased.

[Section 11 amended: No. 6 of 1998 s. 8.]

12. Relationship to Public Service

The fact that a person is a member does not —

(a) render Part 3 of the Public Sector Management Act 1994 or any other Act applying to persons as officers of the Public Service of the State applicable to that person; or

(b) affect or prejudice the application to that person of those provisions if they applied to the person at the time of the appointment.

[Section 12 amended: No. 32 of 1994 s. 3(2).]

13. Members, protection of

A member is not personally responsible for any act done or omitted to be done in good faith by the Board or by that member acting as a member.

14. Pecuniary interests, disclosure of

(1) A member who has a direct or indirect pecuniary interest in a proposal before the Board —

(a) shall disclose the nature of the interest to the Board at each meeting where the proposal is discussed; and

(b) shall not take part in any deliberation or decision of the Board with respect to the proposal.

(2) A disclosure made by a member under this section shall be recorded in the minutes of the Board.

[(3) deleted]

(4) A member who fails to comply with subsection (1) is guilty of an offence and is liable to a penalty of $20 000.

[Section 14 amended: No. 6 of 1998 s. 9.]

15. Board, constitution and proceedings of (Sch. 1)

Schedule 1 has effect with respect to the members and proceedings of the Board.

Division 3 — Staff

16. Staff

(1) The Board may from time to time appoint such persons as are necessary for the purposes of the administration of this Act.

(2) Subject to any relevant award or agreement under the Industrial Relations Act 1979 the terms and conditions of persons employed by the Board are such as the Board determines.

(3) The Board may engage under a contract for services such professional, technical or other assistance as the Board considers necessary to assist it in the effective administration of this Act.

(4) Part 3 of the Public Sector Management Act 1994 does not apply to or in relation to the members of the staff of the Board.

[Section 16 amended: No. 32 of 1994 s. 3(2).]

Part 3 — Fund

17. Building and Construction Industry Training Fund

(1) The funds available to the Board for the purposes of this Act are —

(a) all levy imposed under the Building and Construction Industry Training Levy Act 1990; and

(b) any penalty under section 24; and

(d) any moneys derived from investment by the Board under section 19; and

(e) any other moneys lawfully received by, made available to, or payable to the Board.

(2) An account called the Building and Construction Industry Training Fund is to be established —

(a) as an agency special purpose account under section 16 of the Financial Management Act 2006; or

(b) with the approval of the Treasurer, at a bank as defined in section 3 of that Act,

to which the moneys referred to in subsection (1) are to be credited.

[Section 17 amended: No. 77 of 2006 Sch. 1 cl. 17(2).]

18. Fund, application of

There shall be paid from the moneys from time to time in the Fund —

(a) the remuneration and allowances payable to members and other persons referred to in section 16; and

(b) any moneys the Board has agreed to pay to a collection agency for carrying out functions under this Act; and

(d) all expenditure approved by the Board as a result of implementing operational plans approved by the Minister under section 8; and

(e) any refund under section 21(3), 22 or 23; and

(f) all other expenditure lawfully incurred by the Board in the exercise or performance of its functions.

[Section 18 amended: No. 6 of 1998 s. 10(2).]

19. Temporary investment of moneys

Moneys standing to the credit of the Fund may, until required by the Board for the purposes of this Act, be temporarily invested or dealt with by the Board in such manner as the Treasurer approves.

20. Power to borrow from Treasurer

The Board may borrow from the Treasurer such amounts as the Treasurer approves on such conditions relating to repayment, payment of interest or any other matter as the Treasurer imposes.

Part 4 — Collection of levy

21. Payment of levy

(1) Every project owner shall —

(a) before commencing any construction work for which a permit is required, pay to a collection agency the levy in respect of that construction work based on the value of the construction work estimated under Schedule 2; and

(b) before commencing any construction work for which a permit is not required —

(i) notify the Board of the construction work and the value of the construction work estimated under Schedule 2; and

(ii) pay to the Board the levy in respect of that construction work based on the value of that work as notified to the Board;

and

(c) where, on the completion of construction work, the value of the construction work varies by an additional amount of $25 000 or more (after adjustment has been made for inflation in the prescribed manner) from the value of that work as estimated for the purposes of paragraph (a) or (b), notify the Board of that variation.

(2) Subsection (1) applies to a project owner whether or not the project owner —

(a) applies to the Board for a reduction in, or an exemption from, a levy under section 25B; or

(b) appeals to the Minister under section 25C.

(3) If, as a result of an application or appeal referred to in subsection (2), a project owner pays a levy that is later reduced, or from which an exemption is later granted, the Board shall refund from the Fund to the project owner the amount appropriate to that reduction or exemption.

(4) It is declared, to avoid doubt —

(a) that regulation 6 has always been valid; and

(b) that the estimation of the value of construction work as prescribed in regulation 6 has always been authorised; and

(i) the imposition of the levy;

(ii) the calculation and collection or recovery of a required amount;

(iii) the payment to the Fund of a required amount collected or recovered.

(5) In subsection (4) —

regulation 6 means the Building and Construction Industry Training Fund and Levy Collection Regulations 1991 regulation 6 as originally made and as amended from time to time until its repeal by the Building and Construction Industry Training Fund and Levy Collection Amendment Act 2009 section 7;

required amount means —

(a) an amount of levy; or

(b) an amount under section 22(b) or 24.

[Section 21 amended: No. 6 of 1998 s. 10(1); No. 6 of 2009 s. 4; No. 24 of 2011 s. 159(8).]

21A. Payment of levy by instalments

(1) Despite section 21, a project owner liable to pay a levy in respect of construction work may pay the levy by instalments if the value of the construction work, estimated for the purposes of section 21(1)(a) or (b), is $500 million or more.

(2) The amount for each instalment is calculated using the following equation —

where —

IA is the amount of each instalment of the levy payable in respect of the construction work;

LP is the levy payable under section 21 in respect of the construction work;

PP is the payment period for the construction work, expressed in years (rounded down to the nearest whole year).

(3) In subsection (2) —

payment period, for the construction work, means —

(a) the estimated period during which the construction work is to be carried out as agreed to by the Board and the project owner; or

(b) if the Board and the project owner are unable to agree to an estimate — the period during which the construction work is to be carried out as estimated by the Board; or

(c) if the Minister determines a period over which the levy is payable for the construction work under subsection (4) — that period.

(4) On application by the project owner in the approved form, the Minister may, after consultation with the Board, determine a period over which the levy is payable for the construction work.

(5) A period determined by the Minister under subsection (4) prevails over any estimated period during which the construction work is to be carried out.

[Section 21A inserted: No. 23 of 2020 s. 5.]

21B. Time for payment of instalments

(1) An instalment is due for payment —

(a) if it is the first instalment — on the day on which the whole of the levy amount would be due for payment if it were not payable by instalments; and

(b) if it is another instalment — on the day that is 12 months after the day on which the previous instalment was due for payment.

(2) If the project owner does not pay the first instalment on or before the day on which the instalment is due for payment, the whole of the levy amount payable in respect of the construction work becomes due for payment.

(3) The Board may accept the payment of an instalment, other than the first instalment, that is made after the day on which it was due for payment and the instalment is, if the Board so directs, taken to have been paid on the day on which it became due for payment.

[Section 21B inserted: No. 23 of 2020 s. 5.]

22. Adjustment of amount paid after completion of construction work

Where on the completion of construction work the Board is satisfied that the value of construction work varies by $25 000 or more (after adjustment has been made for inflation in the prescribed manner) from the value of that work as estimated for the purposes of section 21(1)(a) or (b) —

(a) the Board shall refund from the Fund to the project owner an amount equal to the extra amount paid, where the value of the construction work was over estimated; and

(b) the project owner shall pay to the Board or to a collection agency an amount equal to the extra amount that would have been payable if the estimated value of the construction work had been the actual value of that work, where the value of the construction work was under estimated.

[Section 22 amended: No. 6 of 1998 s. 10(3).]

23. Cancellation of construction work, refund payable

If construction work, or a part of any construction work, is cancelled after the project owner has paid the levy, or an instalment of the levy, in respect of that work, the Board shall refund from the Fund to the project owner the amount paid in respect of the value of the cancelled construction work on proof of the cancellation to the satisfaction of the Board.

[Section 23 amended: No. 23 of 2020 s. 6.]

24. Penalty for late payment

(1) In this section —

penalty period means —

(a) for subsection (3) — the period starting on the day construction work commenced and ending on the day the whole of the levy amount payable in respect of the construction work is paid; and

(b) for subsection (5) — the period starting on the day the instalment became due for payment and ending on the day the instalment is paid.

(2) Subsection (3) applies if a project owner is not paying the levy in respect of construction work in instalments under section 21A.

(3) If the construction work is commenced before the project owner pays the levy, the project owner is liable to pay to the Board, by way of penalty, an amount calculated for the penalty period at a prescribed rate on the amount of the levy unpaid.

(4) Subsection (5) applies if a project owner is paying the levy in respect of construction work in instalments under section 21A.

(5) If the project owner does not pay an instalment, other than the first instalment, before it is due for payment, the project owner is liable to pay to the Board, by way of penalty, an amount calculated for the penalty period at a prescribed rate on the amount of the instalment unpaid.

[Section 24 inserted: No. 23 of 2020 s. 7.]

25. Recovery of levy and other amounts

The Board may recover —

(a) amounts of levy that are due for payment; and

(b) amounts due under sections 22 and 24,

in any court of competent jurisdiction.

25A. Minister may establish criteria etc. for reduction in, or exemption from, levy

(1) After consultation with the Board, the Minister may publish a notice in the Gazette providing that, if specified conditions and criteria relating to —

(a) the provision of training arrangements; or

(b) the carrying out of construction work for charitable purposes,

by a project owner are met by that project owner, the Board shall grant a specified reduction in, or exemption from, the levy payable by the project owner under this Part.

(2) The Minister may amend or revoke a notice under subsection (1) by a notice published in the Gazette.

(3) In subsection (1) —

specified means specified in the notice referred to in that subsection.

[Section 25A inserted: No. 6 of 1998 s. 11.]

25B. Applying for and granting reduction in, or exemption from, levy

(1) If a notice is published under section 25A(1), a project owner may apply to the Board, in a form approved by the Board, for a reduction in, or an exemption from, the levy payable by the project owner under this Part.

(2) On receiving an application under subsection (1), the Board —

(a) shall determine in accordance with the conditions and criteria specified in the notice published under section 25A(1) —

(i) whether or not to reduce the levy payable by the applicant and, if so, the amount of the reduction; or

(ii) whether or not to grant an exemption from the levy payable by the applicant,

as the case requires; and

(b) shall notify the applicant accordingly.

[Section 25B inserted: No. 6 of 1998 s. 11.]

25C. Dissatisfied applicant may appeal to Minister

(1) A project owner who is dissatisfied with a determination by the Board under section 25B(2) may appeal to the Minister, in a form approved by the Board, setting out the grounds on which the project owner is dissatisfied with the determination.

(2) An appeal by a project owner under subsection (1) shall be made within 30 days after notification of the determination that is the subject of the appeal is given to the project owner under section 25B(2).

(3) On receiving an appeal under subsection (1), the Minister shall review the determination by the Board and may appoint a person who, in the Minister’s opinion, is independent of the Board and the appellant —

(a) to investigate any matters referred to in the appeal, as directed by the Minister; and

(b) to make written recommendations in relation to those matters to the Minister.

(4) After reviewing the determination by the Board and considering any recommendations made under subsection (3), the Minister —

(a) shall confirm or vary the determination or cancel the determination and substitute the Minister’s determination; and

(b) shall notify the Board and the appellant accordingly.

(5) A determination that is confirmed, varied or cancelled and substituted by the Minister is final.

(6) A report of a determination that is varied or cancelled and substituted by the Minister shall be included in the annual report submitted by the accountable authority of the Board under Part 5 of the Financial Management Act 2006.

[Section 25C inserted: No. 6 of 1998 s. 11; amended: No. 77 of 2006 Sch. 1 cl. 17(3).]

Part 5 — Miscellaneous

26. Application of Financial Management Act 2006 and Auditor General Act 2006

Subject to section 27(2), the provisions of the Financial Management Act 2006 and the Auditor General Act 2006 regulating the financial administration, audit and reporting of statutory authorities apply to and in relation to the Board and its operations.

[Section 26 amended: No. 77 of 2006 Sch. 1 cl. 17(4).]

27. Collection agencies

(1) The Board shall appoint such persons or bodies to be collection agencies for the purposes of this Act as the Board thinks fit.

(2) Notwithstanding any provision of the Financial Management Act 2006 to the contrary, a collection agency shall collect levy and pay levy to the Fund in accordance with prescribed procedures.

(3) A collection agency may be paid such moneys for carrying out its functions under this Act as the Board determines.

[Section 27 amended: No. 77 of 2006 Sch. 1 cl. 17(5).]

28. Authorised persons, appointment and functions of

(1) The Board may, in writing appoint a person to be an authorised person for the purposes of this Act.

(2) Every authorised person appointed under subsection (1) shall be issued with a certificate of appointment in a form prescribed —

(a) signed by the chairperson; and

(b) specifying that the person is an authorised person for the purposes of this Act; and

(3) An authorised person shall produce the certificate referred to in subsection (2) whenever required to do so by any person in respect of whom an authorised person has, or is about to, exercise any power conferred on the authorised person under this section.

(4) A certificate purporting to have been furnished under subsection (2) is, without proof of the signature of the chairperson, evidence in any court of the appointment to which the certificate purports to relate.

(5) An authorised person may, by notice in writing given to a person require the person to submit to the authorised person, or to the Board, within such reasonable time as is specified in the notice, such information or documents relevant to the operation of this Act as is specified in the notice.

(6) An authorised person may require a person to verify by statutory declaration information to be submitted under subsection (5).

(7) If authorised in writing by the Board either in general or in a particular case, an authorised person may, for the purposes of this Act —

(a) at all reasonable times enter, inspect and examine any building or other place; and

(b) conduct any examination or inquiry as the authorised person considers necessary to ascertain whether there has been compliance with this Act; and

[Section 28 amended: No. 6 of 1998 s. 4(2).]

29. Prosecutions of offences

(1) Proceedings for an offence against this Act may be instituted by the Board or any person authorised to do so by the Board.

(2) A prosecution for an offence against this Act must be commenced within 2 years after the date on which the offence was allegedly committed.

[Section 29 amended: No. 84 of 2004 s. 80.]

30. Offences

(1) A person shall not —

(a) fail to notify the Board of construction work and its estimated value in accordance with section 21(1)(b);

(aa) knowingly provide in an application to the Board under section 25B(1), or in an appeal to the Minister under section 25C(1), any information or document that is false or misleading in a material particular;

(b) knowingly provide to the Board, or to a collection agency or to an authorised person any information or document that is false or misleading in a material particular regarding construction work and its value, or refuse to provide such document or information when required to do so under section 28;

(d) fail to notify the Board that, on completion of construction work the actual value of the work varied from the value of the work estimated for the purposes of section 21(1)(a) or (b) by an additional amount of $25 000 or more (after adjustment has been made for inflation in the prescribed manner).

(2) A person who contravenes subsection (1) commits an offence the penalty for which is —

(a) in the case of a natural person, $20 000; or

(b) in the case of a body corporate, $50 000.

(3) A person is not excused from complying with a requirement under this Act to provide information or documents on the ground that to do so might tend to incriminate or render the person liable to a penalty, but information or documents provided by a person when so required is not admissible in evidence against the person in any civil or criminal proceedings other than proceedings for perjury or for an offence under this Act arising out of the false or misleading nature of the information or document.

[Section 30 amended: No. 6 of 1998 s. 10(4) and 12.]

31. Regulations

The Governor may make regulations prescribing all matters that are required or permitted by this Act to be prescribed or are necessary or convenient to be prescribed for giving effect to the purposes of this Act.

[Section 31 amended: No. 6 of 1998 s. 13.]

32. Review of Act

(1) The Minister is to carry out a review of the operation and effectiveness of this Act as soon as practicable after the expiry of 3 years from the commencement of the Building and Construction Industry Training Fund and Levy Collection Amendment Act 2004 and thereafter at intervals of 5 years calculated from the date on which the original report is laid under subsection (3).

(2) In the course of each review the Minister is to consider and have regard to —

(a) the effectiveness of the Board; and

(b) the attainment of the objects of this Act; and

(d) any other matters that appear to the Minister to be relevant.

(3) The Minister is to prepare a report following each review and, as soon as practicable after the report is prepared, is to cause it to be laid before each House of Parliament.

[Section 32 inserted: No. 9 of 2004 s. 4.]

[33. Omitted under the Reprints Act 1984 s. 7(4)(e).]

[34, 35. Deleted: No. 9 of 2004 s. 5.]

Schedule 1 — Members and proceedings of the Board

[s. 15]

[Heading amended: No. 19 of 2010 s. 4.]

Term of office

(1) The chairperson shall hold office for such term, not exceeding 5 years, as is specified in the instrument of appointment and is eligible for reappointment, but cannot hold office for more than 10 consecutive years.

(2) A member, other than the chairperson, shall hold office for such term, not exceeding 3 years, as is specified in the instrument of appointment and is eligible for reappointment, but cannot hold office for more than 10 consecutive years.

(3) A member whose term of office expires without a person having been appointed to fill the vacancy continues in office until whichever of the following occurs first —

(a) a person is appointed to fill the vacancy;

(b) a period of 3 months elapses after the expiry of the term of office.

[Clause 1 amended: No. 6 of 1998 s. 4(3); No. 23 of 2020 s. 8.]

Members, remuneration and allowances of

A member shall be paid such remuneration and allowances as the Minister, on the recommendation of the Public Sector Commissioner, from time to time determines.

[Clause 2 amended: No. 6 of 1998 s. 16(1); No. 39 of 2010 s. 89.]

Proceedings not affected by irregularities

An act, decision or proceeding of the Board, or an act or decision of a member or person acting under the direction of the Board or a member, shall not be invalid or called into question by reason only of any defect or irregularity in —

(a) the constitution of the Board; or

(b) the appointment of a member.

Vacation of office

(1) A member may resign from office by notice in writing delivered to the Minister.

(2) A member may be removed from office by the Minister —

(a) if the Minister is satisfied that the member is permanently incapable of performing the duties of a member; or

(b) if the member is an insolvent under administration, as that expression is defined in the Corporations Act 2001 of the Commonwealth; or

(c) if the member is absent without leave of the Board from 3 consecutive meetings of the Board of which the member has had notice; or

(d) for any other act or omission that in the opinion of the Minister may cause prejudice or injury to the Board.

[Clause 4 amended: No. 10 of 2001 s. 33.]

Meetings

(1) The procedure for convening meetings of the Board and the conduct of business at those meetings shall, subject to this Act, be as determined by the Board.

(2) The first meeting of the Board shall be convened by the chairperson.

(3) The Board shall meet at least 4 times in every year at intervals of not more than 6 months.

(4) The chairperson may at any time and shall when requested to do so by not less than 3 members convene a meeting of the Board to be held at a place and time determined by the chairperson.

[Clause 5 amended: No. 6 of 1998 s. 4(3) and 16(2).]

Who presides at meetings

At a meeting of the Board —

(a) the chairperson shall preside; or

(b) in the absence of the chairperson, the member elected by the members present to act in the place of the chairperson shall preside.

[Clause 6 amended: No. 6 of 1998 s. 4(3).]

Voting

(1) At a meeting of the Board where any question requiring a vote arises the question shall be resolved by a majority of the votes of the members present.

[(2) repealed]

[Clause 7 amended: No. 6 of 1998 s. 16(3) and (4).]

Quorum

At a meeting of the Board 5 members constitute a quorum.

[Clause 8 amended: No. 6 of 1998 s. 16(5); No. 23 of 2020 s. 9.]

Minutes

The Board shall cause accurate minutes of each of its meetings to be recorded and preserved.

Common seal and execution of documents by Board

(1) A document is duly executed by the Board if —

(a) the common seal of the Board is affixed in accordance with subsections (2) and (3); or

(b) it is signed on behalf of the Board by the member or members authorised by the Board to do so.

(2) The common seal of the Board shall not be affixed to any document except by resolution of the Board.

(3) The common seal of the Board shall be affixed to a document in the presence of 2 members, or by one member and any person appointed by the Board under section 16 as the chief executive of the Board, and each of them shall sign the document to attest that the common seal was so affixed.

(4) The common seal of the Board shall —

(a) be in a form determined by the Board; and

(b) be kept in such custody as the Board directs; and

(5) When a document purporting to bear the common seal of the Board is produced before any court, judge or person acting judicially, that court, judge or person shall unless the contrary is proved, presume that —

(a) the document bears that common seal; and

(b) that common seal was duly affixed to that document.

[Clause 10 amended: No. 6 of 1998 s. 16(6).]

Schedule 2 — Estimating the value of construction work

[s. 21]

[Heading inserted: No. 6 of 2009 s. 5.]

Terms used

In this Schedule —

GST has the meaning given in the A New Tax System (Goods and Services Tax) Act 1999 (Commonwealth);

relevant components means —

(a) all goods (including manufactured goods) forming part of the construction work; and

(b) labour; and

(d) fees payable; and

(e) overheads to be met; and

(f) profit margin.

[Clause 1 inserted: No. 6 of 2009 s. 5.]

Estimated value for s. 21(1)(a) and (b)

For the purposes of section 21(1)(a) and (b) —

(a) where the construction work is to be carried out under a contract and the contract price includes value for at least each of the relevant components — the estimated value of the construction work is the contract price (including the GST); and

(b) where the construction work is to be carried out —

(i) other than under a contract; or

(ii) under a contract the contract price for which does not include value for each of the relevant components,

the estimated value of the construction work is the sum of the value (including the GST) of the relevant components.

[Clause 2 inserted: No. 6 of 2009 s. 5.]

dline

Notes

This is a compilation of the Building and Construction Industry Training Fund and Levy Collection Act 1990 and includes amendments made by other written laws. For provisions that have come into operation, and for information about any reprints, see the compilation table.

Compilation table

Short title	Number and year	Assent	Commencement
Building and Construction Industry Training Fund and Levy Collection Act 1990 3	76 of 1990	20 Dec 1990	s. 1 and 2: 20 Dec 1990; Act other than s. 1 and 2: 1 Jul 1991 (see s. 2 and Gazette 28 Jun 1991 p. 3101)
Acts Amendment (Public Sector Management) Act 1994 s. 3(2)	32 of 1994	29 Jun 1994	1 Oct 1994 (see s. 2 and Gazette 30 Sep 1994 p. 4948)
Local Government (Consequential Amendments) Act 1996 s. 4	14 of 1996	28 Jun 1996	1 Jul 1996 (see s. 2)
Vocational Education and Training Act 1996 s. 71(1)	42 of 1996	16 Oct 1996	1 Jan 1997 (see s. 2 and Gazette 12 Nov 1996 p. 6301)
Building and Construction Industry Training Fund and Levy Collection Amendment Act 1998 4	6 of 1998 (as amended by No. 9 of 2004 s. 6)	30 Apr 1998	s. 1 and 2: 30 Apr 1998; Act other than s. 1 and 2: 19 Apr 1999 (see s. 2 and Gazette 9 Apr 1999 p. 1433)
*Reprint of the Building and Construction Industry Training Fund and Levy Collection Act 1990* as at 9 Mar 2001** (includes amendments listed above)
Corporations (Consequential Amendments) Act 2001 Pt. 10	10 of 2001	28 Jun 2001	15 Jul 2001 (see s. 2 and Gazette 29 Jun 2001 p. 3257 and Cwlth Gazette 13 Jul 2001 No. S285)
Building and Construction Industry Training Fund and Levy Collection Amendment Act 2004	9 of 2004	18 Jun 2004	18 Jun 2004 (see s. 2)
*Reprint 2: The Building and Construction Industry Training Fund and Levy Collection Act 1990* as at 10 Sep 2004** (includes amendments listed above)
Criminal Procedure and Appeals (Consequential and Other Provisions) Act 2004 s. 80	84 of 2004	16 Dec 2004	2 May 2005 (see s. 2 and Gazette 31 Dec 2004 p. 7129 (correction in Gazette 7 Jan 2005 p. 53))
Financial Legislation Amendment and Repeal Act 2006 Sch. 1 cl. 17	77 of 2006	21 Dec 2006	1 Feb 2007 (see s. 2(1) and Gazette 19 Jan 2007 p. 137)
Building and Construction Industry Training Fund and Levy Collection Amendment Act 2009 Pt. 2	6 of 2009	19 May 2009	20 May 2009 (see s. 2(b))
Standardisation of Formatting Act 2010 s. 4	19 of 2010	28 Jun 2010	11 Sep 2010 (see s. 2(b) and Gazette 10 Sep 2010 p. 4341)
Public Sector Reform Act 2010 s. 89	39 of 2010	1 Oct 2010	1 Dec 2010 (see s. 2(b) and Gazette 5 Nov 2010 p. 5563)
Building and Construction Industry Training Fund and Levy Collection Amendment Act 2010	47 of 2010	12 Nov 2010	s. 1 and 2: 12 Nov 2010 (see s. 2(a)); Act other than s. 1 and 2: 13 Nov 2010 (see s. 2(b))
*Reprint 3: The Building and Construction Industry Training Fund and Levy Collection Act 1990* as at 4 Mar 2011** (includes amendments listed above)
Building Act 2011 s. 159	24 of 2011	11 Jul 2011	2 Apr 2012 (see s. 2(b) and Gazette 13 Mar 2012 p. 1033)
Building and Construction Industry Training Fund and Levy Collection Amendment Act 2020	23 of 2020	27 May 2020	s. 1 and 2: 27 May 2020 (see s. 2(a)); Act other than s. 1 and 2: 28 May 2020 (see s. 2(b))
Work Health and Safety Act 2020 Pt. 15 Div. 4 Subdiv. 1	36 of 2020	10 Nov 2020	31 Mar 2022 (see s. 2(1)(c) and SL 2022/18 cl. 2)
Construction Industry Portable Paid Long Service Leave Amendment Act 2025 Pt. 7	12 of 2025	28 Aug 2025	1 Jan 2026 (see s. 2(b) and SL 2025/170 cl. 2)

Other notes

1 Repealed by the Fisheries Legislation (Consequential Provisions) Act 1991. Now see the Commonwealth Fisheries Management Act 1991 (Cwlth).

2 Repealed by the Offshore Petroleum (Repeals and Consequential Amendments) Act 2006 (Cwlth). Now see Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cwlth).

3 This Act shall be read as one with the Building and Construction Industry Training Levy Act 1990 (see s. 3 of that Act).

4 The Building and Construction Industry Training Fund and Levy Collection Amendment Act 1998 s. 7(2) reads as follows:

(2) A person holding office as a member of the Board immediately before the day on which this Act comes into operation ceases to hold office on that day but, subject to the principal Act as amended by this Act, is eligible for reappointment to the Board.

Defined terms

[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]

Defined term Provision(s)

authorised person 3(1)

Board 3(1)

building and construction industry 3(1), 3A(2)

Building and construction industry 3A(1)

chairperson 3(1)

collection agency 3(1)

construction work 3(1)

Fund 3(1)

GST Sch. 2 cl. 1

industry 8(1)

levy 3(1)

member 3(1)

operational plan 8(1)

payment period 21A(3)

penalty period 24(1)

permit 3(1)

project owner 3(1)

regulation 6 21(5)

relevant components Sch. 2 cl. 1

required amount 21(5)

specified 25A(3)

This work is licensed under a Creative Commons Attribution 4.0 International Licence (CC BY 4.0). To view relevant information and for a link to a copy of the licence, visit www.legislation.wa.gov.au.

By Authority: ROGER JACOBS, Acting Government Printer

Western Australia

Building and Construction Industry Training Fund and Levy Collection Act 1990

Western Australia

Building and Construction Industry Training Fund and Levy Collection Act 1990

Contents

Part 1 — Preliminary

Short title 2
Commencement 2
Terms used 2

3A. Building and construction industry 4

Act binds Crown 7
Application of Act to off‑shore construction work 7

Part 2 — Building and Construction Industry Training Board

Division 1 — Establishment, functions and powers

Board established 10
Board, functions of 10
Operational plans 11
Minister, directions by 12

Division 2 — Membership, constitution, proceedings, etc.

Members 13
Deputy members 14
Relationship to Public Service 15
Members, protection of 15
Pecuniary interests, disclosure of 15
Board, constitution and proceedings of (Sch. 1) 16

Division 3 — Staff

Staff 16

Part 3 — Fund

Building and Construction Industry Training Fund 17
Fund, application of 17
Temporary investment of moneys 18
Power to borrow from Treasurer 18

Part 4 — Collection of levy

Payment of levy 19

21A. Payment of levy by instalments 20

21B. Time for payment of instalments 22

Adjustment of amount paid after completion of construction work 22
Cancellation of construction work, refund payable 23
Penalty for late payment 23

The Act operates through a set of core legal concepts and defined terms. The principal definitions appear in s 3 and the recently inserted s 3A (Building and construction industry). The main concepts are these.

Levy, Fund and Board. The levy is the statutory charge imposed by the companion Building and Construction Industry Training Levy Act 1990; the Fund (Building and Construction Industry Training Fund) is the special purpose account into which levy receipts and related sums are credited (s 17); and the Board is the Building and Construction Industry Training Board established by s 6 to collect levy and administer the Fund (ss 6-7, 17).
Construction work and project owner. Construction work is broadly defined in s 3(1) by reference to the Act’s definition of building and construction industry (s 3A) and to building work and demolition work in the Building Act 2011 (s 3). The term project owner is central to liability: it captures the person required to hold a permit, or, where the State is involved, a person designated by the Minister, or otherwise the person or entity for whose direct benefit the work will exist on completion or the person engaged to carry out all the work (s 3(1) definition of project owner). That definition matters because the project owner has primary payment and notification obligations under s 21.
Scope of the industry. Section 3A sets out an extensive list of works that constitute the building and construction industry, including buildings, roads, railways, pipelines, power generation and transmission works, bridges, dock works, site preparation, and fences other than on farms (s 3A(1)(a)(i)-(xix)). It also includes fabrication and plant installation and work normally carried out on site by employees (s 3A(1)(b)-(c)). Section 3A(2) lists exclusions, for example work on ships and routine minor maintenance by employees where the employer is not substantially engaged in the construction industry.
When construction work is taken to commence. Section 3(2) sets the triggers for commencement: where a permit is required, when any work subject to a permit commences; otherwise various contract‑based triggers apply (s 3(2)(a)-(d)). There is a carve‑out for licences issued under the Local Government (Miscellaneous Provisions) Act 1960 issued before commencement of this Act (s 3(3)).
Estimating value and GST. Schedule 2 defines how the estimated value of construction work is calculated for levy purposes, and expressly includes GST where the contract price or component values include it (Sch. 2 cl. 1-2). Relevant components are enumerated: goods, labour, services, fees, overheads and profit margin (Sch. 2 cl. 1).
Operational plans and allocation. The Board must prepare annual operational plans aimed at improving training and increasing skilled persons (s 8(1)). Plans list priorities for allocation to programmes (s 8(2)). The Minister approves or can request amendments and the Board implements approved plans (s 8(4)-(8)).
Collection, refunds and adjustments. Levy payment rules vary by whether a permit is required (s 21(1)(a)-(b)). The Board must be notified of variations of $25 000 or more after inflation adjustment (s 21(1)(c)). On completion, if the Board is satisfied there is a $25 000 or greater variance, refunds or additional payments are triggered (s 22). If work is cancelled, the Board shall refund amounts paid in respect of the cancelled work upon proof (s 23).
Enforcement and investigatory powers. The Board can appoint authorised persons who can require information and documents, verify by statutory declaration, and, if authorised in writing, enter premises and take copies (s 28). Proceedings for offences may be instituted by the Board or authorised persons (s 29(1)). Recovery of levy and amounts is via court action (s 25).
Ministerial oversight. The Minister may give written directions to the Board which the Board must give effect to (s 9). The Minister also publishes criteria for reductions or exemptions, and hears appeals where applicants are dissatisfied with Board determinations (ss 25A, 25B, 25C).

These concepts create the legal and administrative architecture: who is liable, how value is estimated, when payment is due, how funds are used, and how the Board and Minister share control and oversight.

The Act allocates legal obligations and decision‑making across a handful of identifiable groups and institutional actors. Primary actors and affected parties, as established in the text, are:

Project owners: The Act makes the project owner the primary liability point for levy payment and notification obligations (s 3(1) definition of project owner; s 21(1)). Project owners thus bear the direct financial cost of the levy, the principal administrative burden of estimating and notifying value, and the risk of penalties for late or incorrect notification (s 30). Project owners include private owners, State projects (with Ministerial designation where appropriate), and persons engaged to carry out all of the construction work (s 3(1)(a)-(c)).
Employers, contractors and subcontractors: While levy liability is keyed to the project owner, the Act’s definition of the industry (s 3A) and the Schedule 2 estimation rules means contractors’ contract prices and component costs determine the taxable base. Contractors therefore have an indirect stake in how value is reported, in contract terms that allocate the levy cost, and in project cashflow because levy must often be paid before commencement where a permit is required (s 21(1)(a)).
The Building and Construction Industry Training Board: The Board is the statutory administrator and decision maker on allocations from the Fund, operational plan preparation and implementation, and appointment of collection agencies and authorised persons (ss 6-9, 16, 27-28). The Board decides grant recipients, payments to collection agencies (s 27(3)), and whether to refund or require top‑up payments after completion (s 22).
Collection agencies: The Board may appoint persons or bodies to act as collection agencies (s 27(1)). Collection agencies collect levy and must pay it to the Fund in accordance with prescribed procedures; they may be remunerated by the Board (s 27(2)-(3)). They therefore act as intermediaries that collect funds from project owners before passing them to the Fund.
Minister and government: The Minister has oversight (s 9), approves operational plans (s 8(4)-(7)), may publish criteria for reductions or exemptions (s 25A), hears appeals in relation to reductions or exemptions and makes final determinations (s 25C). The Treasurer also has roles concerning Fund investment approvals and loans to the Board (ss 19-20).
Authorised persons and Board staff: Authorised persons appointed by the Board have powers to obtain and verify information, inspect premises and examine documents (s 28). Staff appointed by the Board administer the Act (s 16).
Training and educational providers and apprentices: These groups are the recipients of Fund allocations under operational plans (s 8(1)(a)-(f)). They are beneficiaries of the Fund, and their courses and programs are the likely recipients of grants and accreditation funding.
The Crown and State entities: The Act binds the Crown (s 4). For State projects, the Minister may designate the project owner or where the State engages another person to carry out the work, that engaged person may be treated as project owner (s 3(1)(b)).
Parties connected to off‑shore work: The Act applies to certain off‑shore construction work when specified connections to the State exist, for example State‑certificated vessels, State regulation, domiciled project owners, or facilities serviced in the State (s 5).

The distribution of costs is concentrated on project owners and, through contract pricing, on those who procure construction services. Benefits from Fund expenditure are concentrated on trainees, accredited course providers, and training and research initiatives the Board supports (s 8). The Minister and Board decide allocations, while collection agencies and authorised persons carry out operational and investigatory tasks. The Act also creates compliance obligations across the construction sector through estimation and notification requirements, time‑of‑payment rules and reporting duties.

This section summarises the principal statutory duties imposed on parties and the principal rights and administrative entitlements created by the Act, with section references.

Duties of project owners

Pay levy before commencement where a permit is required (s 21(1)(a)); notify the Board and pay the levy where no permit is required (s 21(1)(b)(i)-(ii)). Payment must be based on value estimated under Schedule 2 (s 21(1)(a)-(b); Sch. 2 cl. 2).
Notify the Board upon completion where actual value varies by $25 000 or more after inflation adjustment from the estimated value (s 21(1)(c)).
If the Board finds a $25 000+ variance on completion, the Board shall refund over‑payments and may require under‑payments to be paid to the Board or a collection agency (s 22).
If work is cancelled after levy payment, present proof of cancellation to obtain a refund (s 23).
Where applicable and eligible, apply for reductions or exemptions in a form approved by the Board under criteria published by the Minister (ss 25A, 25B).
If dissatisfied with a Board determination on a reduction or exemption, appeal to the Minister within 30 days (s 25C(1)-(2)).

Duties of the Board

Ensure efficient collection of levy and control and administer the Fund (s 7(1)(a)-(b)).
Allocate Fund resources by preparing, submitting and implementing annual operational plans focused on training and skills (s 7(1)(ba); s 8).
Appoint collection agencies and authorised persons (ss 27, 28).
Refund or recover amounts as required by ss 22 and 23; recover levy and other amounts in court (s 25).
Comply with the Financial Management Act 2006 and Auditor General Act 2006 regarding financial administration (s 26), subject to section 27(2).

Powers and rights of the Board and authorised persons

The Board may do all things necessary for performance of its functions (s 7(2)).
Authorised persons may require information and documents, verify by statutory declaration, and, if authorised in writing for a particular case, enter premises, inspect and copy documents (s 28(5)-(7)).
The Board may appoint collection agencies and set their remuneration (s 27(1), (3)); collection agencies must collect and pay levy according to prescribed procedures notwithstanding provisions of the Financial Management Act 2006 (s 27(2)).

Ministerial powers and rights

The Minister may give written directions to the Board which must be given effect (s 9(1)); those directions must be included in the Board’s annual report (s 9(2)).
The Minister may publish criteria for reductions or exemptions and amend or revoke such a notice (s 25A).
The Minister hears and determines appeals from dissatisfied applicants, may appoint an independent investigator, vary or substitute Board determinations, and the Minister’s determination is final (s 25C(1)-(5)).

Rights of project owners in administrative processes

Applicants for reductions or exemptions have a right to apply to the Board (s 25B(1)).
Applicants can appeal Board determinations to the Minister within 30 days (s 25C(1)-(2)), and the Minister may appoint an investigator, consider recommendations, and substitute determinations (s 25C(3)-(4)). The Minister must publish a report of substituted determinations in the Board’s annual report (s 25C(6)).

Enforcement rights and duties

The Board may initiate prosecutions for offences under this Act or authorise persons to do so (s 29(1)). There is a two‑year limitation for commencing prosecutions (s 29(2)).
The Board may recover levy and specified amounts in court (s 25).
Offences include failing to notify, false or misleading information in applications or appeals, commencing work before paying levy, and failing to notify post‑completion variations (s 30(1)(a), (aa), (b)-(d)). Penalties for contraventions are set out in s 30(2) ($20 000 for natural persons; $50 000 for bodies corporate). A member who fails to disclose pecuniary interest faces a $20 000 penalty (s 14(4)).

Financial administration and auditing duties

Fund moneys must be credited to an agency special purpose account or, with Treasurer approval, a bank account (s 17(2)).
Moneys in the Fund may be invested temporarily with Treasurer approval (s 19).
The Board may borrow from the Treasurer with Treasurer approval and on terms imposed by the Treasurer (s 20).
The Board’s financial administration is subject to the Financial Management Act 2006 and Auditor General Act 2006 (s 26).

Procedural duties

The Board must prepare annual operational plans and submit them to the Minister for approval; the Minister may request amendments (s 8(1), (4)-(6)).
Minutes of Board meetings must be kept (Sch. 1 cl. 9) and procedural safeguards such as pecuniary interest disclosure are mandated (s 14).

These duties create a framework where project owners and the construction sector provide funds via levy, which the Board and Minister then allocate to training and related activities, subject to specified processes, oversight and enforcement.

The Act provides a mix of criminal penalties, monetary penalties and civil recovery powers, with administrative enforcement routes. Primary enforcement mechanisms and penalty provisions are the following.

Criminal penalties and offences

Section 30 sets out a number of offences. These include failing to notify the Board of construction work and its estimated value where required (s 30(1)(a)); knowingly providing false or misleading information in an application to the Board or in an appeal to the Minister (s 30(1)(aa)); knowingly providing false or misleading information to the Board, a collection agency or an authorised person regarding construction work and its value or refusing to provide documents/info when required under s 28 (s 30(1)(b)); commencing construction work before paying the levy due (s 30(1)(c)); and failing to notify the Board of post‑completion value variation of $25 000 or more (s 30(1)(d)).
Penalties: s 30(2) prescribes fines of $20 000 for natural persons and $50 000 for bodies corporate for contraventions under subsection (1). The Act also protects compelled information from being used in civil or criminal proceedings against the person who provided it, except for perjury or offences under the Act arising from false or misleading information (s 30(3)).

Civil recovery and penalty for late payment

The Board may recover levy amounts due for payment, and amounts due under s 22 (adjustments) and s 24 (penalty for late payment), in any court of competent jurisdiction (s 25).
Late payment penalty: Section 24 imposes a monetary penalty where levy is not paid before commencement or instalment payments are missed. The amount is calculated for the penalty period at a prescribed rate on the amount of levy unpaid (s 24(3), (5)). The Act defines the penalty period as the period from commencement of construction until the day the whole levy amount is paid (s 24(1)(a)); for instalments the penalty period runs from the due date of the instalment until payment (s 24(1)(b)). The specific prescribed rate is left to regulations.

Prosecutions and time limits

Proceedings for offences may be instituted by the Board or any person authorised by the Board (s 29(1)). This allows the Board to bring criminal prosecutions or to authorise others to do so.
Time limit: A prosecution must be commenced within two years of the alleged offence (s 29(2)). That limit constrains enforcement where omissions are slow to be detected.

Administrative penalties and internal governance sanctions

Members of the Board have pecuniary‑interest disclosure duties; failure to comply attracts a $20 000 penalty (s 14(4)). Removal grounds for members include incapacity, insolvency, absence or conduct that may cause prejudice or injury to the Board (Sch. 1 cl. 4). These are governance rather than penal provisions, but they are enforceable.

Investigatory powers and compelled production

Authorised persons may issue written notices requiring production of documents or information (s 28(5)), require statutory declarations to verify information (s 28(6)), and, if authorised in writing for a particular case, enter premises and take copies of documents (s 28(7)). A certificate of appointment must be carried and produced on request (s 28(2)-(4)). The Act limits admissibility of compelled material in later proceedings (s 30(3)).

Interest and prescribed procedures

Late payment penalty and calculation are tied to prescribed rates and regulations (s 24). Collection agencies must collect and pay levy in accordance with prescribed procedures notwithstanding the Financial Management Act 2006 (s 27(2)). Exact calculation mechanics and collection procedures are therefore administratively set rather than statutorily fixed.

Recovery priority and refunds

The Board must refund amounts where estimates prove to be excessive (s 22(a)) and shall refund amounts paid in respect of cancelled works upon satisfactory proof (s 23). Where under‑payments are discovered, the project owner must pay the extra amount to the Board or to a collection agency (s 22(b)).

Appeals and finality

For reductions or exemptions, the Board decides but applicants may appeal to the Minister within 30 days (s 25C(1)-(2)). The Minister’s decision is final (s 25C(5)). This limits judicial review via internal administrative finality for that subset of disputes, though statutory limits on judicial review generally remain outside the Act.

Practical enforcement implications

The Act places the burden of compliance on project owners; failure to build compliance into project costings risks monetary penalties, late payment interest and recovery actions (ss 21, 24, 25, 30). The Board has investigative powers but prosecutions must be brought within two years (s 29(2)), so the Board’s surveillance and auditing capacity matters to whether offences are detected and pursued.

In short, the enforcement architecture combines investigative powers, civil recovery, administrative decision‑making and criminal penalties, with rule details and rates delegated to regulations and administrative procedures.

The Act is explicitly designed to operate alongside and interact with a number of Commonwealth and State statutes, and it incorporates external definitions and financial controls. The key statutory interactions recorded in the Act are:

Building and Construction Industry Training Levy Act 1990: The Act is to be read as one with the Building and Construction Industry Training Levy Act 1990 (compilation note and s 3 definition of levy). The levy amount and base are prescribed in that companion legislation; this Act establishes collection and Fund administration mechanisms.
Building Act 2011: The Act refers to building work and demolition work as defined in the Building Act 2011 s 3 when defining construction work and permit concepts (s 3(1)). The requirement to pay levy before commencing construction where a permit is required aligns levy triggers with the Building Act’s permit regime (s 21(1)(a); s 3(1) definitions).
Financial Management Act 2006 and Auditor General Act 2006: The Board is subject to the financial administration, audit and reporting obligations under these Acts, subject to s 27(2) (s 26). The Fund is to be established as an agency special purpose account under s 16 of the Financial Management Act 2006 unless the Treasurer approves a bank account (s 17(2)). The Act also authorises temporary investment of Fund moneys with Treasurer approval (s 19) and borrowing from the Treasurer (s 20).
Local Government (Miscellaneous Provisions) Act 1960: There is a transitional/limiting provision that levy is not payable in relation to construction for which a building or demolition licence under that Act was issued before this Act’s commencement (s 3(3)).
Corporations Act 2001 and related bodies corporate law: The definition of project owner and application to corporate entities includes references to related body corporate for the purposes of the Corporations Act in contexts like domiciled or registered corporations with State ties (s 5(2)(c)(iii)). The Schedule and compilation notes also reference amendments consequential to Commonwealth corporation law changes (compilation table).
GST and Commonwealth taxation law: Schedule 2 explicitly refers to GST as defined in the Commonwealth A New Tax System (Goods and Services Tax) Act 1999 when defining estimated value (Sch. 2 cl. 1). The Act includes contract prices and component values that include GST where those amounts include GST (Sch. 2 cl. 2).
Work Health and Safety and other industry‑specific laws: The Act’s definition of the industry and operational plan functions include training in work health and safety requirements (s 8(1)(c)). The compilation table indicates amendments relating to the Work Health and Safety Act 2020 (compilation table).
Offshore and Commonwealth law: Section 5 extends the Act to certain off‑shore areas where State regulation applies, or where the project owner is connected with the State, and it references Commonwealth instruments such as the continental shelf conventions in its historical notes; this creates possible cross‑jurisdictional application where State laws operate in offshore contexts.
Public Sector Management Act 1994 and Industrial Relations Acts: The Act contains provisions about members and staff not being part of the Public Service for the purposes of certain Acts (ss 12, 16). It also references award and agreement conditions under the Industrial Relations Act 1979 for staff terms (s 16(2)).
Regulations and delegated instruments: The Act delegates technical detail to regulations for penalties rates, collection procedures, estimation mechanics before Schedule 2 amendments, and other matters (ss 24, 27(2), 31). Section 21(4) clarifies validity of an earlier regulation 6 and its estimation regime up until repeal and amendment, which is relevant to transitional questions.

These interactions mean practitioners must consider the Building Act permit regime to determine levy timing (s 21(1)(a)), use Schedule 2 and GST law to estimate the levy base (Sch. 2), follow Financial Management Act account and reporting rules for Fund administration (ss 17, 19, 26), and recognise that Ministerial directions and published criteria under this Act sit alongside other administrative law frameworks (s 9; ss 25A-25C). The Act also leaves technical aspects such as penalty rates and collection procedures to regulations, so review of the current regulations is necessary to advise on precise rates and methods.

The source includes a compilation table and amendment notes that record legislative changes to the Act since assent in 1990. Relevant amendments and their effects, as shown in the Act’s compilation, include the following (dates refer to the source compilation):

1994 Acts Amendment (Public Sector Management) Act 1994 (No. 32 of 1994), commenced 1 Oct 1994: Affects the relationship of members and staff to Public Service provisions (see s 12 and s 16 amendments).
1996 Local Government (Consequential Amendments) Act 1996 (No. 14 of 1996), commenced 1 Jul 1996: amended s 3.
1996 Vocational Education and Training Act 1996 amendments (No. 42 of 1996), commenced 1 Jan 1997: amended certain references in s 3.
1998 Building and Construction Industry Training Fund and Levy Collection Amendment Act 1998 (No. 6 of 1998), main provisions commenced 19 Apr 1999: significant amendments included Board composition and procedural changes (see s 10 insertion, Sch. 1 updates).
2001 Corporations (Consequential Amendments) Act 2001 (No. 10 of 2001), commenced 15 Jul 2001: consequential amendments affecting corporate references.
2004 Building and Construction Industry Training Fund and Levy Collection Amendment Act 2004 (No. 9 of 2004), commenced 18 Jun 2004: inserted s 32 (review of Act) and made other changes.
2006 Financial Legislation Amendment and Repeal Act 2006 (No. 77 of 2006), commenced 1 Feb 2007: incorporated application of the Financial Management Act 2006 and Auditor General Act 2006 (s 26 and other financial reporting amendments).
2009 Amendment Act (No. 6 of 2009), commenced 20 May 2009: Schedule 2 and valuation changes inserted (Sch. 2 inserted by s 5) to reflect GST and relevant components; s 21(5) validating earlier regulation 6 is also included.
2010 formatting and amendment Acts (No. 19 and No. 39 of 2010) and the Building and Construction Industry Training Fund and Levy Collection Amendment Act 2010 (No. 47 of 2010), commenced Nov 2010: made various technical and membership updates.
2011 Building Act 2011 amendments (No. 24 of 2011), amendments to definitions and permit references, commenced April 2012: s 3 amended to integrate Building Act definitions.
2020 Building and Construction Industry Training Fund and Levy Collection Amendment Act 2020 (No. 23 of 2020), commenced 28 May 2020: significant policy additions including ss 21A and 21B enabling payment of levy by instalments for very large projects (value estimated at $500 million or more), and penalty framework amendments (s 24 inserted).
2020 Work Health and Safety Act references in the compilation table reflect later alignment to safety legislation (Pt. 15 Div. 4 Subdiv. 1).
2025 Construction Industry Portable Paid Long Service Leave Amendment Act 2025 (No. 12 of 2025), s 23 and related inserts, commenced 1 Jan 2026: inserted s 3A (building and construction industry definition) to align with construction industry definitions and amended s 3.

The compilation table confirms multiple reprints of the Act (reprints in 2001, 2004, 2011 etc). The statutory text itself records certain amendment insertions directly (for example s 21A inserted by No. 23 of 2020 s 5; s 3A inserted No. 12 of 2025 s 23). The Schedule and notes show the legislative intent to keep the levy estimation mechanism and the Fund’s administrative framework aligned with changes in tax law (GST) and sectoral regulation (Building Act, Work Health and Safety Act).

Practitioners must therefore check both the Act and the subordinate regulations and any later amending Acts for current mechanics such as prescribed penalty rates, the precise levy rate in the companion Levy Act, and any updated administrative procedures for collection agencies, authorised persons and instalment calculations under s 21A where the Act references a calculation that is in the statute but which, in the provided text, lacks the explicit formula.

The Act itself, as supplied, does not list judicial decisions or case law. The statutory text contains no references to litigation or to judicial interpretations. The compilation and notes likewise do not cite cases. Consequently, the source does not provide recorded litigation history or precedent to guide statutory interpretation.

That absence in the source means practitioners must rely on statutory text, administrative decisions and any reported cases outside this compilation. The Act creates several legal pathways where litigation or court proceedings could arise; the mechanisms provided suggest the types of disputes and tribunals likely to be engaged:

Civil recovery proceedings: Section 25 expressly authorises the Board to recover levy amounts and other amounts under ss 22 and 24 in any court of competent jurisdiction. Those civil actions will commonly involve contract and debt recovery principles, disputed valuation of construction work, and challenges to the Board’s assessment of post‑completion discrepancies.
Criminal prosecutions: The Board or an authorised person may institute proceedings for offences under the Act (s 29(1)). Prosecutions would centre on alleged breaches such as commencing construction before paying the levy (s 30(1)(c)), making false or misleading statements (s 30(1)(aa), (b)), or failing to notify post‑completion value differences (s 30(1)(d)). A two‑year limitation applies to commencing prosecutions (s 29(2)), which will be a litigation point if timing is contested.
Administrative review and appeals: For reductions and exemptions under s 25A-25C, the Board’s determination is subject to appeal to the Minister, whose decision is final (s 25C(5)). That internal finality may result in administrative law challenges before courts or tribunals on grounds such as jurisdictional error or procedural fairness; however the Act itself makes the Minister’s determination final for the internal appeal.
Judicial review: Where the Board or Minister exercises statutory power, parties may seek judicial review in the Supreme Court of Western Australia for jurisdictional error, breach of procedural fairness, or other public law grounds. The Act itself preserves the Minister’s direction power (s 9) and the Board’s duty to implement directions, so litigation could focus on whether directions fall within statutory power.
Contract and construction disputes: Because Schedule 2 ties the estimated value to contract prices and relevant components, disputes about contractual terms, scope of works, and whether a contract includes GST in the contract price may feed into litigation over the levy base.

Given the lack of cases in the source, practitioners should search Western Australian judicial databases and administrative tribunal decisions for reported matters involving the Act, and review Board annual reports and earlier ministerial reports (s 9(2); s 25C(6)) for administrative decisions that might have led to disputes. The Act’s two‑year prosecution limitation (s 29(2)), finality of Ministerial decisions on exemptions (s 25C(5)), and the Board’s civil recovery powers (s 25) are the primary procedural provisions likely to shape litigation strategy.

This Act contains several practical traps for the unwary. The following items are concrete mechanics or thresholds that commonly create compliance surprises or commercial friction, each grounded in the statutory text.

Timing of payment tied to permit regime: Where a permit is required under the Building Act 2011, the levy must be paid to a collection agency before commencing any work that is the subject of a permit (s 21(1)(a)). Projects that start preparatory works without recognising permit triggers or that mis‑classify activities may unintentionally commence without paying levy and thereby incur penalties and interest (s 30(1)(c); s 24). Practitioners should map the permit regime to levy triggers.
Definition of project owner is outcome‑oriented: The project owner is the permit holder, or, for State projects, a Minister‑designated person, or otherwise the person for whose direct benefit the construction will exist on completion or the person engaged to carry out all of the work (s 3(1)). This means project owner status may attach to entities who are not the initial contract party, affecting who must pay. For State projects, the Minister’s written designation can change liability lines (s 3(1)(b)).
$25 000 variance threshold: The Board only acts on post‑completion variations when the variance equals or exceeds $25 000 after inflation adjustment (s 21(1)(c); s 22). This absolute dollar threshold (not a percentage) can lead to cliff effects for mid‑sized projects and creates an administrative incentive to cluster work values around the threshold. The Act also imposes a notification duty on project owners where post‑completion variance reaches that amount (s 21(1)(c)), and failing to notify is an offence (s 30(1)(d)).
Instalment scheme limited to very large projects: The instalment option under s 21A applies only where the estimated value is $500 million or more (s 21A(1)). The Act contemplates a statutory equation for calculating instalments (s 21A(2)), but the practitioner should note the text in the provided compilation omits the explicit equation; instead, payment period and instalment timing rules are set out (s 21A(3)-(5)). For projects near the threshold, loss of cashflow relief may be material.
Prescribed rates and delegated detail: Several important mechanics are delegated to regulation or prescribed procedures. Late payment penalties are calculated at a prescribed rate (s 24(3), (5)); collection agencies must follow prescribed procedures notwithstanding the Financial Management Act (s 27(2)); valuation and GST mechanics largely depend on Schedule 2 and regulation detail (Sch. 2). Practitioners must check current regulations and Board guidance for exact figures and processes.
Ministerial directions and Board independence: The Minister may give written directions to the Board which the Board must give effect to (s 9(1)). The text requires inclusion of directions in the Board’s annual report (s 9(2)). Direction power gives the Minister discretion to influence operational plan priorities and allocations, and may affect predictability of Fund allocations. The Act also requires Board operational plans to be approved by the Minister (s 8(4)-(7)).
Evidence admissibility protection for compelled information: Material provided under compulsion is protected from use against the provider in civil or criminal proceedings except for perjury or offences under this Act relating to false or misleading information (s 30(3)). Practitioners must carefully advise clients when producing documents under s 28 notices about the limited scope of immunity.
Two‑year prosecution limit: The two‑year time bar for commencing prosecutions (s 29(2)) can affect enforcement strategies and evidence retention obligations for the Board. Conversely, it limits the window for criminal exposure for alleged contraventions. Parties should be aware of record retention needs during the limitation period.
Ministerial finality on reductions or exemptions: While applicants can appeal Board determinations to the Minister, the Minister’s decision is final (s 25C(5)). That limits the internal administrative appeal options and may raise judicial review issues as the only external avenue.
Collection agencies’ special status: Collection agencies act under Board appointment, collect levy, and are paid by the Board (s 27(1), (3)). They operate under prescribed procedures and their payments to the Fund are protected from certain Financial Management Act provisions (s 27(2)). This intermediary role introduces counterparty risk and requires checking appointment terms.
Off‑shore application complexity: Section 5 extends the Act to certain off‑shore work when specific links to the State exist. Whether those jurisdictional connections apply can be a factual and legal question, with the Act permitting an averment to be deemed proved in the absence of contrary proof (s 5(4)). Parties engaged in offshore or cross‑jurisdictional projects must consider these clauses.
Member pecuniary interest penalty: Board members face a $20 000 penalty for failing to disclose direct or indirect pecuniary interests in proposals before the Board (s 14(4)). Governance processes must be robust to avoid exposure.

These “gotchas” arise from thresholds, timing triggers, delegation to regulations, and the interaction of the levy regime with permit and contract structures. Advisers should map permit dates, contract pricing, parties’ statuses and valuation approaches at the project outset to avoid unwanted exposure.

This section sets out concrete compliance steps a project owner, contractor, or adviser should follow to satisfy the Act’s obligations, referencing statutory provisions. The steps are practical and designed to reduce exposure to penalties and enforcement.

Determine whether the work falls within the Act’s scope

Check the definition of building and construction industry in s 3A(1) and the construction work definition in s 3(1). Confirm whether exclusions in s 3A(2) apply, for example work on ships or routine minor maintenance by non‑substantially engaged employers.

Establish who is the project owner

Use the statutory definition of project owner in s 3(1) to identify who holds levy liability. Confirm whether a permit holder, a Ministerially‑designated State project owner, or the person for whose direct benefit the work will exist is the liable person. For State projects, if the State has engaged another person to carry out all the construction work, document that arrangement in writing to clarify liability (s 3(1)(b)-(c)).

Assess permit triggers and commencement timing

Determine whether a building or demolition permit is required under the Building Act 2011 for the works (s 3(1) definition of permit). If a permit is required, levy must be paid before commencing any work that is the subject of a permit (s 21(1)(a)). If no permit is required, the project owner must notify the Board of the construction work and estimated value and pay the levy to the Board before commencing (s 21(1)(b)).

Calculate estimated value per Schedule 2

Where the construction work is under a contract and the contract price includes relevant components, use the contract price including GST as the estimated value (Sch. 2 cl. 2(a)). If no contract or the contract price does not include all relevant components, sum the values of the relevant components including GST (Sch. 2 cl. 2(b)). Relevant components are defined in Sch. 2 cl. 1: goods, labour, services, fees, overheads and profit margin. Record the basis and supporting documents for the valuation.

Pay levy to collection agency or Board as required

If a permit is required, pay to an appointed collection agency the levy based on the estimated value before commencing work (s 21(1)(a)). If no permit is required, notify the Board and pay the levy to the Board (s 21(1)(b)). Confirm the collection agency’s appointment and prescribed procedures and retain receipts of payment for Fund audits. Check the Board’s website or administrative guidance for current procedures.

Monitor and record variations and completion

Maintain contemporaneous records of contract variations, change orders and actual costs. On completion, if the actual value differs by $25 000 or more after inflation adjustment from the estimated value, notify the Board (s 21(1)(c)); failure to notify is an offence (s 30(1)(d)). Provide supporting documentation to the Board to enable any refund or additional payment determination (s 22).

Consider instalment arrangements for very large projects

If the estimated value is $500 million or more, consider applying for instalment payment under s 21A. Prepare an agreed estimate of the payment period with the Board, or if there is disagreement, anticipate the Board’s estimate or seek Ministerial determination under s 21A(4). Ensure instalments are paid on schedule per s 21B and note the trigger in s 21B(2) that non‑payment of the first instalment renders the whole levy payable.

Use the reduction/exemption route where applicable

If training arrangements or charitable construction may qualify, monitor Gazette notices under s 25A that publish criteria. Apply to the Board in the approved form (s 25B(1)). If dissatisfied with the Board’s determination, appeal to the Minister within 30 days (s 25C(2)).

Cooperate with authorised persons and information requests

If served with a written notice under s 28(5) requiring documents or information, respond within the reasonable time specified. If required, verify via statutory declaration (s 28(6)). If authorised, permit reasonable inspections and provide copies as requested (s 28(7)). Understand that compelled material is protected from use in most civil and criminal proceedings per s 30(3) but can be used for perjury or for offences arising from false information.

Observe governance and disclosure obligations for Board members and staff

If advising a prospective Board member, ensure pecuniary interest disclosure at meetings (s 14(1)-(2)) and that any direct or indirect pecuniary interest is recorded. Failure attracts a $20 000 penalty (s 14(4)).

Retain records for enforcement periods

Retain valuation, payment, contract and correspondence records for at least the period within which prosecutions might be commenced and debts recovered, taking into account the two‑year prosecution limit (s 29(2)) and potential civil recovery actions (s 25). The Board’s auditing obligations under the Financial Management Act 2006 also mean records may be inspected.

Check regulations and Board guidance

Because penalty rates and procedures are prescribed, check the current regulations and Board instructions for prescribed rates under s 24 and collection procedures under s 27(2). Verify any procedural forms and the Board’s approved appeal form referenced in ss 25B and 25C.

Factor levy into contracts and cashflow

Advise clients to include levy cost allocation in procurement documents and to model payment timing given the pre‑commencement payment requirement for permit projects (s 21(1)(a)). For projects without permits or with instalment arrangements, include clauses that allocate responsibility for payment, refund handling, and recovery of penalties or interest.

Seek prompt advice on jurisdictional issues for offshore work

For works carried out partly offshore or with complex State connections consider s 5. Where regulatory connections to the State exist, the Act may apply. The Act treats certain averments as proved in absence of contrary evidence (s 5(4)), so documentary proof of non‑connection should be prepared if contesting application.

Following these steps will reduce the risk of criminal or civil exposure and ensure accurate allocation of levy costs. The compliance burden is primarily administrative and accounting: accurate valuation, timely payment, recordkeeping and responsiveness to Board requests. Practitioners should keep the Board’s forms, Gazette notices under s 25A, the current regulations, and the Levy Act under close review.

Deep Dive

What it does

Current sections