Changes coming to the Building Levy

From 1 July this year, the building levy threshold will increase from $20,444 including GST to $65,000 including GST.

The building levy threshold has not changed in the 30 years since it was set up and has not kept up with the increasing value of building works, says MBIE Policy Director Antonia Reid.

"After the change comes into force, if the value of the building work you are completing is less than $65,000 including GST, it will be exempt from paying the building levy.

"The levy is paid by a building owner or developer when they submit their building plans to the local building consent authority for building consent on their project,” said Antonia.

The building levy is collected by building consent authorities and passed on to MBIE.

"MBIE uses the building levy to support investment in and development of Aotearoa New Zealand’s building sector," said Antonia.

"It funds a range of functions and activities under the Building Act 2004, including information and guidance, compliance, enforcement, monitoring and reporting.

"In 2023, we sought feedback as part of the Building Levy Review including the proposal to increase the levy threshold.

"Two-thirds of the submissions supported increasing the levy threshold and most of those in support of the increase thought it went some way towards aligning with increases in the cost of building and construction," said Antonia.

You can find more information on the Building Levy on the Building Performance website:

Building levy(external link) — Building.govt.nz

Read the Minister's announcement of the changes(external link) — Beehive.govt.nz