The $11,000 owner builder threshold explained

How the threshold works

The Queensland Building and Construction Commission Act 1991 sets the point at which building work needs either a licensed contractor or an owner builder permit. For residential work on land you own, company-owned land where you are a director, or land you lease, that point is $11,000 including GST. At or below it you can do the work without a permit; above it you must hold a permit before any work starts.

For farm buildings the threshold is higher: you can carry out farm building work up to $27,500 without a permit.

The threshold applies to the whole project, not to each trade or stage. A renovation done in three phases is still one job.

How to value the work

QBCC’s method: add together the cost of all materials and labour needed to finish the project, at the trade price for each item, including GST.

• Count your own labour at what a licensed contractor would charge, even if you will do it yourself for nothing.
• Count discounted, second-hand or donated materials at their normal trade price.
• Include every trade needed to finish: site works, slab, frame, roof, plumbing, electrical, tiling, painting.
• Do not deduct the value of work you will subcontract to licensed trades. It is still part of the project.

Why QBCC values it this way

This stops the threshold being avoided by doing the labour free or sourcing cheap materials. If a licensed builder would quote $40,000 for the job, it is worth $40,000 for permit purposes, whatever you actually pay. Keep a written estimate; QBCC can ask for it, and so can a buyer’s solicitor later.

What counts as owner builder work

Owner builder work is residential: new homes, renovations and extensions, garages, carports and residential sheds, swimming pools and outdoor entertainment areas. It does not cover commercial or industrial buildings, or multiple-dwelling units.

Some work needs a licence regardless of value and cannot be done under a permit. Plumbing, drainage, gasfitting and chemical termite management must be done by licensed contractors, as must electrical work. You may do up to $1,100 of fire protection or mechanical services work yourself.

Work under the threshold

If the total is $11,000 or less you do not need a permit, but the other rules still apply: licensed trades for plumbing, gas and electrical work, council building approval where the work needs it, and work health and safety duties for anyone on site.

Penalties for building without a permit

Carrying out building work over the threshold without a permit or a licence is an offence under the QBCC Act, and QBCC can fine you. You can also be fined for working outside the conditions of a permit you hold.

Unpermitted work also surfaces when you sell: a buyer’s solicitor will look for the permit and the owner builder notice, and QBCC’s application for work already completed does not undo the offence.

Asbestos in homes built before 1990

If the property was built before 1990, or you are altering a building where asbestos may be present, QBCC requires you to complete an asbestos general awareness course through a Registered Training Organisation before you start, in addition to the owner builder course. This applies whatever the value of the work, and QBCC may ask for proof.