How Do Queensland’s $3,300 Home Warranty and $150,000 QLeave Thresholds Work?

Queensland home warranty insurance is compulsory for residential construction work valued at more than $3,300 including materials, labour and GST, according to the Queensland Building and Construction Commission (QBCC) guidance updated 11 May 2025. Separately, 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, according to QBCC premium-calculation guidance updated 6 Dec 2022. Figures checked 1 October 2026.

What is the difference between the two charges?

The QBCC applies different thresholds, calculation bases and GST treatment to home warranty insurance and the QLeave levy.

The contractor pays the home warranty premium to the scheme. It is collected from the homeowner, included in the contract and paid before work begins. For a project meeting both thresholds, the QLeave levy is payable in addition to the home warranty premium.

Which work and materials count towards the home warranty value?

Associated work counts when it is included in the contract. The QBCC gives these examples:

• landscaping;
• driveways;
• fences;
• pool fences;
• retaining walls;
• air conditioning;
• hot water systems; and
• security doors and grills.

The calculation also requires close attention to materials:

• Add the value of materials even when someone else supplies them.
• For home warranty purposes, calculate as though all building and other materials are provided by the contractor, even if that is not the actual arrangement.
• Add labour, including the QLeave levy where the levy applies.
• Add GST.
• Do not add the QBCC home warranty premium to its own insurable value.

How can each amount be included in calculating the other?

The QBCC says the cost of each premium or levy must be included when calculating the other. This makes the calculations interdependent, but it does not require a particular payment order.

Paying the QLeave levy first

1. Calculate and pay the QLeave levy.
2. Include the levy cost in labour when determining the home warranty insurable value.
3. Add the other insurable-value components and GST, while excluding the QBCC premium itself.
4. Calculate the home warranty premium.

Paying the home warranty premium first

1. Calculate and pay the home warranty premium.
2. Include that premium cost when determining the QLeave work value.
3. Calculate the QLeave levy, excluding GST.

The QBCC confirms that either order produces the same end result. Paying one amount first does not remove the need to include it when calculating the other.

No QLeave levy rate is supplied in the QBCC material used for this article, so a dollar levy should not be estimated without checking the regulator’s current calculation material.

How do the home warranty premium tables affect the result?

The QBCC premium tables increase premiums 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.

That table banding is separate from the QLeave threshold. The $1,000 increments determine the home warranty premium band; they do not change the $150,000 QLeave threshold.

What should contractors check before finalising the amount?

Before calculating or paying either amount:

• Check which associated work is included in the contract.
• Include the value of materials even when they are supplied by the owner or another party.
• Apply GST to the home warranty calculation, but exclude it from the QLeave calculation.
• Check whether the project reaches the QLeave threshold before excluding GST.
• Include each premium or levy in the calculation of the other.
• Confirm the current rule on the regulator page and review the relevant policy’s PDS.

For information about notifying and paying the QLeave levy, the QBCC lists 1300 753 283 and levies@qleave.qld.gov.au.

This is general information, not financial or legal advice. Check the current regulator page and the relevant policy’s PDS before settling the contract amount.

Sources

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

FAQ

Does home warranty apply at exactly $3,300?

The QBCC guidance updated 11 May 2025 says home warranty insurance is compulsory for work valued at more than $3,300, including materials, labour and GST. The QBCC’s separate premium-calculation guidance updated 6 Dec 2022 says it is payable on projects valued at $3300 and above. Because the published boundary wording differs, confirm a project exactly at $3,300 with the QBCC and check the contract.

Is the QLeave levy included in the home warranty calculation?

Yes, where the levy applies. The QBCC includes the QLeave levy in labour for the home warranty calculation. In the other direction, the home warranty premium cost must be included when calculating the QLeave levy.

Does GST apply to both amounts?

No. GST is included in the home warranty threshold and insurable value, and the home warranty premium includes GST. The QLeave threshold is $150,000 or more excluding GST, and the QLeave levy excludes GST.

Does paying the QLeave levy first change the final result?

No. The QBCC says the end result is the same whichever amount is paid first, provided the cost of each premium or levy is included when calculating the other.