Have your say on building levy fees!

The Ministry of Building, Innovation and Employment (MBIE) has released a consultation document for public feedback on three proposed changes to the building levy

MBIE has opened feedback to the changes, which increase the levy threshold and reduce the levy rate, to anyone who has interactions with the building levy. This includes people who have paid or will be paying a building levy in the future, organisations that collect and process the building levy (such as Territorial Authorities) and people who interact with the building regulatory system and receive any services funded by the building levy.

The proposed changes will:

• Increase the levy threshold from $20,444 to $65,000.
• Reduce the levy rate from $1.75 to $1.48 (including GST) per $1,000 of building work value over the threshold.
• Increase investment in MBIE’s building regulatory functions.

The levy is payable by applicants for building consents above the current threshold of $20,444. The current rate is $1.75 (including GST). If consent is granted and the value of the building work set out in the consent is over $20,444, then owners or developers of residential or commercial buildings pay the levy on every $1,000 of building work value.

The revenue collected from the levy is used to fund a range of MBIE functions and activities under the Building Act 2004.

The proposed changes seek to address five issues with the current levy.

1. The current levy has generated a significant surplus, which is undesirable in terms of good practice.
2. The current levy threshold hasn’t been changed for 30 years and should be adjusted for inflation.
3. MBIE’s digital and other engagement channels do not fully meet the needs of their stakeholders.
4. MBIE is facing increasing costs in delivering better compliance pathways to the building sector.
5. MBIE is facing increasing costs in delivering building for climate change regulation.

MBIE says that if the proposed changes become law, on a $467,220 detached dwelling, the levy costs would reduce from around $817.64 to $677.47. For a $20m commercial build, the levy costs would reduce from $35,000 to $29,000.

Check out the consultation documentation HERE.

To make a submission on the consultation, you can complete an online survey by visiting https://www.research.net/r/building-levy-review-2023 or you can fill out a submission form and email it to building@mbie.govt.nz. Alternatively, you can fill out your submission form and post it to Building Levy consultation, Building System Performance, Building, Resources and Markets, Ministry of Business, Innovation and Employment, PO Box 1473, Wellington 6140, New Zealand.

Submissions for the building levy consultation close at 5pm on Monday 29 May 2023.