The Building Levy

Applicants for building consents which are granted and are above a threshold, pay a building levy (the levy). The revenue collected from the building levy is used to fund a range of Ministry of Business, Innovation and Employment (MBIE) functions and activities under the Building Act 2004, including:

• policy, technical rules and guidance, operational policy advice and service design
• information and education
• service delivery (compliance and enforcement)
• monitoring and reporting.

People who pay the building levy benefit from these functions and activities. For example, improved building safety and longevity, a better understanding of their obligations when building, and assurance for those who may purchase an existing building that it is safe.

To address recommendations for continuous improvements in MBIE’s building regulatory system, as well as reducing the significant surplus in the building levy memorandum account, MBIE is proposing to make three changes to the building levy.  

1. Increase the levy threshold.
2. Change to the levy rate.
3. Increase investment in MBIE’s building system performance services.

We would like to hear from anyone who interacts with the levy, whether as a home or building owner who has, or may in the future, build or undertake renovations; building consent authorities; or someone who receive services the levy funds.

Your feedback will help us:

• reduce the volume of lower value building consent applications paying the levy
• improve the building and construction regulatory services MBIE delivers to levy payers and the building sector
• ensure that the balance of the levy memorandum account trends to zero over time
• ensure that MBIE’s building and construction regulatory services have a sustainable funding base going forward.

You can read more about the building levy on the Building Performance website:

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