Tuesday, 15 January 2008

Section 94 ey?

So far I've worked out that we're not up for the section 94, but for the section 94A levy, which is calculated as a percentage of the development cost excluding a few things including project management, insurances, taxes, council fees etc. Those percentages mean we pay 1% if the development cost is over 200K, and .5% over 100K, which is a big difference.

That means that if what the builder is making for 'being the builder', plus those other things like insurance, hiring the certifier, etc add up to over $37K, then we would drop below the $200K percentage barrier.
For eg.
dev cost = $200,000. Levy fee = $2000
Dev cost = $199,999. levy fee = $1000

I have no idea what sort of margin builders work to, but I'm hoping it's big so that when the dev cost is calculated we're under that barrier.

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