According to the Queensland Building and Construction Commission (QBCC) guidance on calculating the premium, dated 6 Dec 2022, QLeave applies to licensed contractors carrying out residential construction work in Queensland valued at $150,000 or more, excluding GST. The QBCC’s home warranty guidance, dated 11 May 2025, says home warranty insurance is compulsory where residential construction work is valued at more than $3,300, including materials, labour and GST. Figures checked 1 October 2026.
Which threshold applies to each charge?
QLeave and home warranty insurance have separate thresholds. A residential project can be subject to home warranty insurance without reaching the QLeave threshold.
| Point to check | QLeave levy | Home warranty insurance |
|---|---|---|
| Threshold | Licensed contractors doing residential construction work in Queensland must pay when the project is valued at $150,000 or more, excluding GST. | Compulsory when residential construction work is valued at more than $3,300, including materials, labour and GST. |
| GST treatment | The $150,000 threshold excludes GST, and the QBCC says the QLeave levy excludes GST. | GST is included in the threshold value, and the home warranty premium includes GST. |
| Who pays or collects it | The licensed contractor pays QLeave in addition to the home warranty premium. | The contractor collects the premium from the homeowner, includes it in the contract and pays it before work begins. |
| Value used | The value of the work is the cost paid by the project owner. | The insurable value adds materials, labour and GST, but excludes the QBCC premium. |
| Rounding | The QLeave levy is rounded to the nearest dollar. | The home warranty premium is rounded to the nearest 5c or 10c. |
What happens at exactly $3,300?
The QBCC pages use different boundary wording. The premium-calculation page says home warranty insurance is payable on projects valued at “$3300 and above”, while the home warranty guidance says it is compulsory for work valued at “more than $3300”.
The comparison above follows the home warranty guidance’s “more than $3,300” wording. For a project valued at exactly $3,300, check the current QBCC page and the contract before treating it as outside the scheme.
How should GST be treated in each check?
Keep the two calculations separate:
- QLeave: Test the project against $150,000 excluding GST. The QBCC also states that the QLeave levy excludes GST.
- Home warranty: Test the project against more than $3,300 including materials, labour and GST. The premium itself includes GST.
A GST-inclusive project total should not be compared directly with the GST-exclusive QLeave threshold.
What goes into each calculation?
QLeave value
The value of work used to calculate the QLeave levy is the cost paid by the project owner.
Home warranty insurable value
The QBCC’s calculation guidance says to:
- Add the value of materials even when someone else supplies them.
- Include labour, including the QLeave levy for projects subject to that levy.
- Add GST.
- Exclude the QBCC premium.
- Include associated work included in the contract, such as landscaping, driveways, fences, pool fences, retaining walls, air conditioning, hot water systems, and security doors and grills.
For home warranty purposes, the calculation is based on all building and other materials being provided by the contractor, even if that is not the case.
QBCC premium tables increase in $1,000 increments. If the insurable value is any amount over a $1,000 threshold, the premium moves to the next level.
Does it matter which amount is calculated first?
No. The QBCC says the cost of each premium or levy must be included when calculating the other, and paying them in either order produces the same end result.
| Calculation route | What to do |
|---|---|
| QLeave first | Pay the QLeave levy, include its cost, then calculate the home warranty premium. |
| Home warranty first | Calculate the home warranty premium, include its cost, then calculate the QLeave levy. |
The important point is not which charge comes first. Each charge must be included when calculating the other.
This is general information, not financial or legal advice. Check the current QBCC regulator page and the applicable policy’s PDS before applying a threshold or calculating a premium.
Sources
- Calculating the premium | Queensland Building and Construction Commission
- What is home warranty insurance | Queensland Building and Construction Commission
FAQ
Does QLeave apply at exactly $150,000?
Yes. For licensed contractors carrying out residential construction work in Queensland, the threshold is $150,000 or more, excluding GST.
Does home warranty insurance apply at exactly $3,300?
The QBCC pages are not worded consistently at that exact boundary. One says “$3300 and above”; the other says “more than $3300”. Check the current regulator page and contract for a project valued at exactly $3,300.
Does QLeave replace the home warranty premium?
No. For a project meeting the QLeave threshold, the levy is payable in addition to the home warranty premium.
Does calculating the home warranty premium first change the result?
No. The QBCC says each amount must be included when calculating the other and that either calculation order produces the same end result.
Can owner-supplied materials be left out of the home warranty calculation?
No. Material values are included even when supplied by others, and the calculation treats all building and other materials as contractor-provided.