The Queensland Government is currently seeking input from building and construction industry stakeholders about proposed changes to the levy structure that applies to the undertaking of building and construction work in Queensland.

According to the Consultation Regulatory Impact Statement, the impetus for review of the portable long service levy (PLSL) structure comes from the need to address future provision for increased eligibility of long service leave benefits as the scheme matures. 

At present, the PLSL scheme is funded by a levy of 0.25% payable to QLeave on the total project costs (including all direct and indirect costs) of all building and construction work over $150,000 (excluding GST).  A tiered levy structure results in a discounted levy rate for the portion of a project’s costs that exceed $1.161 billion.

The Consultation Regulatory Impact Statement identifies a number of options.  The government's preferred options include:

  • increasing the PLSL levy rate from 0.25% to 0.3%, whilst removing the tiered levy structure in favour of a single base levy structure; and
  • including GST in the definition of the total cost of works.

The Government is also proposing a small increase to the work health and safety levy (of 0.005%).  This will provide a dedicated source of funding for mental health and suicide prevention initiatives in the building and construction industry – reflecting the high incidence of suicide in the construction industry.