What Is the Long Service Levy?

The long service levy is a compulsory payment on most building and construction work in New South Wales. It funds the Building and Construction Industry Long Service Payments scheme, which provides long service leave to eligible workers in the building and construction industry — even when they move between different employers over their career. The levy is administered by the Long Service Corporation.

Who has to pay the levy?

The levy is generally payable by the owner of the project, or the person for whom the work is being carried out. In practice it is usually paid by the property owner or developer before construction can lawfully begin. For most residential projects, the levy must be paid before a construction certificate or complying development certificate (CDC) is issued, because your certifier cannot release the certificate until proof of payment (or exemption) is provided.

How is the long service levy calculated?

The levy is calculated as a percentage of the total cost of building and construction work, including the cost of labour and materials, GST-inclusive. The levy rate is set by the NSW Government and has historically sat around 0.25% of the total cost of works. Because the rate can change, always confirm the current figure with the Long Service Corporation or your certifier before you budget.

As a simple worked example, on a project where the rate is 0.25%:

• A $300,000 home build → approximately $750 in levy.
• A $150,000 renovation → approximately $375 in levy.
• A $50,000 granny flat or garage → approximately $125 in levy.

The Long Service Corporation provides an official online levy calculator so you can confirm the exact amount for your project cost before lodging your application.

When is the levy payable?

For building work that needs a construction certificate or CDC, the levy must be paid before that certificate is issued. For work where no certificate is required, the levy is generally payable before the work commences. Your private certifier will confirm the trigger point for your specific approval pathway.

Are any projects exempt?

Some lower-value projects may be exempt or attract a reduced levy. Thresholds change from time to time, so low-cost works that once fell under the exemption limit may now be levied. We recommend checking the current exemption threshold rather than relying on older figures.

How Meta Certifiers helps

As your private certifier, we flag the long service levy early so there are no surprises and no delays to your construction certificate or CDC. We confirm the current rate, help you calculate the amount, and make sure proof of payment is in order so your certificate can be issued without hold-ups. If you're planning a project in Sydney, get in touch and we'll walk you through every cost involved.