Queensland Building Insurance Thresholds: $3,300 Home Warranty vs $150,000 QLeave Levy

figures checked 1 October 2026

Queensland Building and Construction Commission (QBCC) guidance dated 11 May 2025 says home warranty insurance is compulsory for residential construction work valued at more than $3,300, including the cost of materials, labour and GST (What is home warranty insurance). The QBCC’s Calculating the premium guidance dated 6 Dec 2022 says licensed contractors carrying out residential construction work in Queensland valued at $150,000 or more, excluding GST, must pay the QLeave levy in addition to the home warranty premium.

What do the two Queensland thresholds mean?

The tests use different GST bases. GST is included in the home warranty threshold and calculation, while it is excluded from the QLeave threshold and levy. The Queensland Government administers the Queensland Home Warranty Scheme through the QBCC.

For a project costing more than $3,300, including labour, materials and GST, the QBCC says the home warranty insurance premium should be included in each quote so comparisons are accurate.

What goes into the home warranty insurable value?

The QBCC says to calculate the home warranty insurable value by adding together:

• Materials, including their value even when someone else supplies them.
• Labour, including the cost of the QLeave levy where that levy applies.
• GST.

Associated work included in the contract also forms part of the value. The QBCC’s examples include landscaping, driveways, fences, pool fences, retaining walls, air conditioning, hot water systems, and security doors and grills.

The insurable value excludes the QBCC premium itself. The calculation is also based on all building and other materials being provided by the contractor, even if that is not the case for the project.

Why must the QLeave levy be included when calculating the home warranty premium?

Labour is part of the home warranty insurable value, and the QBCC expressly includes the QLeave levy in labour where the levy applies. Treating the levy as a completely separate cost would leave out a labour cost that belongs in the stated calculation.

The QBCC also says the cost of each premium or levy must be included when calculating the other. The two calculation paths are:

• QLeave first: Calculate the QLeave levy, include its cost in the labour and insurable value, then calculate the home warranty premium.
• Home warranty first: Calculate the home warranty premium, then include its cost when calculating the QLeave levy.

The QBCC says paying either amount first produces the same end result. The two calculations still have different GST and rounding treatments.

How do GST, rounding and premium tables affect the figures?

The QBCC’s premium tables increase in $1,000 increments relative to the insurable value. If the insurable value is any amount over a $1,000 threshold, the premium moves up to the next level.

Who pays each amount and what should be in the contract?

For home warranty insurance, the contractor collects the premium from the homeowner, includes it in the contract and pays it to the scheme before work begins. For the QLeave levy, a licensed contractor carrying out the relevant Queensland residential construction work must pay the levy when the project reaches the QLeave threshold.

Home warranty insurance applies to residential construction work, including fixed-price and cost-plus residential contracts. It does not cover commercial building projects.

What should you check before applying these figures?

Check the current QBCC regulator page for the operative threshold and calculation rules, and check the relevant policy’s PDS for contract-specific information. This article is general information, not financial or legal advice.

Sources

• What is home warranty insurance | Queensland Building and Construction Commission
• Calculating the premium | Queensland Building and Construction Commission

FAQ

What is the home warranty threshold in Queensland?

The QBCC guidance says home warranty insurance is compulsory for residential construction work valued at more than $3,300, including materials, labour and GST. The contractor collects the premium from the homeowner and includes it in the contract.

When does the QLeave levy apply?

The QLeave levy applies to licensed contractors carrying out residential construction work in Queensland valued at $150,000 or more, excluding GST. The QBCC says the value used is the cost paid by the project owner, and the levy excludes GST.

What counts toward the home warranty insurable value?

The calculation includes materials even if supplied by others, labour including an applicable QLeave levy, and GST. It also includes associated work listed in the contract, such as landscaping, driveways, fences, pool fences, retaining walls, air conditioning, hot water systems, and security doors and grills. The QBCC premium is excluded.

Does the QLeave levy affect the home warranty premium calculation?

Yes, where the levy applies, its cost is included in labour for the home warranty insurable value. The QBCC also says each premium or levy cost must be included when calculating the other, and either calculation order produces the same end result.

What should a contractor check before pricing residential work?

Check the contract scope, associated work, who supplies the materials, the GST-inclusive home warranty basis and the GST-exclusive QLeave basis. Then check the current QBCC page and the relevant policy’s PDS before relying on the calculation.