Consultation on changes to building levy

26 May 2023

2 minutes to read

Proposed changes to the building levy are under review with the Ministry of Business, Innovation and Employment (MBIE) reviewing feedback to strengthen and improve the building regulatory system.

building consents for projects that are worth more than the currently prescribed $20,444 threshold. MBIE areproposing increasing that threshold so that a building levy would only need to be paid on building work that exceeds $65,000.

The building levy funds a range of MBIE functions and activities, including:

  • creating and amending building policy
  • providing guidance and advice on building policies
  • delivering building compliance and enforcement services
  • monitoring and reporting on the policies and their impact on the building sector

MBIE says these functions provide a range of benefits, including improved building safety and longevity, a better understanding of their obligations when building and assurance of safety for those who may purchase a building.

The Ministry released a consultation document for public feedback in mid-April, seeking feedback on the following proposed changes:

  • Increasing the levy threshold from $20,444 to $65,000
  • Reducing the levy rate from $1.75 to $1.48 (including GST) per $1,000 and part $1000
  • Increasing investment in MBIE’s Building System Performance services

MBIE sought feedback from anyone who interacts with the building levy, including people  who have paid or will be paying a building levy in the future, those who collect the building levy (Building Consent Authorities), people who interact with the building regulatory system and receive any of the services funded by the building levy.

Following the consultation period, ending on 29 May, the Ministry will assess the findings before announcing its decisions this winter.

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