An Update on the NSW Fair Trading New Building Levy

The New South Wales (NSW) Fair Trading is a government agency that aims to protect consumer rights and ensure that traders comply with regulatory requirements. This minimises financial harm that may come to customers due to the failure of businesses to comply with regulations.

The NSW government has recently instituted reforms to enhance compliance with laws in the building and construction industry. The reforms, which will be starting with the class 2 buildings, are expected to restore confidence in the industry and ensure that apartments being constructed are reliable and trustworthy. Class 2 buildings are typically multi-unit or multi-storey residential buildings where people live below and above each other.

NSW Fair Trading New Building Levy

The NSW Fair Trading introduced a building levy scheduled to commence after 3 July 2022, aiming to recover the costs associated with ensuring compliance with the reforms. This article describes how it will affect the timing of the issuance of occupation certificates by building certifiers.

What type of buildings will the levy apply to?

The levy will apply to class 2 buildings or those that have class 2 components in them if the expected completion notice (ECN) is submitted or amended after 3 July 2022. When the work relates to the construction of a new building, part of a new building or the addition of storeys to an existing structure, the levy will be paid at each stage of the work that requires submission of an expected completion notice (ECN).

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The levy will apply to class 2 buildings or those that have class 2 components in them.

NSW Fair Trading New Building Levy

The NSW Fair Trading introduced a building levy scheduled to commence after 3 July 2022, aiming to recover the costs associated with ensuring compliance with the reforms. This article describes how it will affect the timing of the issuance of occupation certificates by building certifiers.

How will payment be made?

Payment will be made via the NSW planning portal when the expected completion notice (ECN) is submitted as part of the intention to seek an occupation certificate (ITSOC). It is the responsibility of the person who submits.

Final thoughts

The new building levy introduced by the NSW Fair Trading will come into force after 3 July 2022. The rate of the levy will be mainly determined by the number of storeys being constructed at each.