Who pays the premium | Queensland Building and Construction Commission

QBCC licence and other fees are set by regulation and increase according to the Government Indexation Rate. For 2024-2025, the Government Indexation Rate is zero percent. Therefore there was no fee increase on 1 July 2024. 


Contractor pays the premium

The licensed contractor you contract to do the work (often called the principal contractor) must collect the premium from you and pay it to us on your behalf.

Depending on the type of residential construction work being carried out, a principal contractor could be a licensed contractor (e.g. a builder building a house) or a trade contractor (e.g. a carpenter installing new kitchen cabinets).  

The cost of the premium is included as part of your total contract price.

The premium is calculated on the:

  • insurable value of the work for single detached houses
  • notional value of the work for duplexes and multiple dwellings, e.g. units or townhouses, with some exceptions.

Your contractor will calculate the premium for you based on our guidelines.

When the premium is paid

The premium must be paid:

  • before work starts
  • within 10 business days of signing the contract (whichever is earlier).

Once the premium is paid the QBCC will issue a notice of cover.

Optional additional cover can be bought after the standard premium is paid and:

  • within 30 business days of the contract date
  • before the work starts (whichever is earlier).

How the premium amount is worked out

The premium is based on the insurable value of the work. This includes GST and excludes the QBCC insurance premium.

Your contractor will calculate the correct insurance premium and add it to the cost of your project.

When the cover begins

Your insurance cover begins when the first one of these things happen:

  • the premium is paid
  • you enter into a contract with a licensed contractor
  • a licenced contractor begins residential construction works.

Homeowner pays for additional cover

Once the contractor has paid for the standard insurance premium, you can pay for optional additional cover.

Take out optional additional cover

Protect yourself with extra insurance cover for your building project.


Last reviewed: 10 Mar 2024 Last published: 10 Mar 2024
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