The building levy is reducing

Posted: 12 June 2020

From 1 July 2020, the building levy rate will reduce from $2.01 to $1.75 (including GST) per thousand dollars of consented building work, for all work that is over the $20,444 threshold (including GST).

Reducing the levy rate will lower building consent costs by around $80 for the average new build, and by $5,200 for a $20 million commercial project.

This is good news for those looking to build or do other building work requiring a building consent.

The lower building levy rate will reduce the surplus that has accrued in the building levy account without affecting the level of service MBIE provides to levy payers. In addition, Building Act changes currently in front of Parliament will enable MBIE’s Chief Executive to spend levy funds on a broader range of activity to monitor, oversee and improve the performance of the building sector.

More information about the building law reforms

This information is published by the Ministry of Business, Innovation and Employment’s Chief Executive. It is a general guide only and, if used, does not relieve any person of the obligation to consider any matter to which the information relates according to the circumstances of the particular case. Expert advice may be required in specific circumstances. Where this information relates to assisting people: