Figures checked 1 October 2026.
The Queensland Building and Construction Commission (QBCC) uses $3,300 as a project-value threshold, not a claim payout, but its current pages state the boundary differently: its home warranty insurance guidance, updated 11 May 2025, says insurance is compulsory for residential construction work valued at more than $3,300 including materials, labour and GST, while its premium-calculation guidance, updated 6 Dec 2022, says the premium only needs to be paid on projects valued at $3300 and above. For plumbing work, associated work included in the contract—such as hot water systems—can enter the insurable value, which adds materials, labour, any applicable QLeave levy and GST but excludes the QBCC premium.
What associated work can count toward a plumbing job’s value?
The QBCC includes the cost of associated work when that work forms part of the contract. Its examples are:
- Landscaping
- Driveways
- Fences
- Pool fences
- Retaining walls
- Air conditioning
- Hot water systems
- Security doors and grills
Hot water systems are expressly listed. If a hot water system is included in the plumbing contract as associated work, its cost should be included when determining the insurable value.
How is the insurable value calculated?
The QBCC calculation can be expressed as:
Insurable value = materials + labour, including any applicable QLeave levy + GST
Exclude the QBCC premium from that value.
| Component | How the QBCC says to treat it |
|---|---|
| Associated work | Include the cost when it is included in the contract. |
| Materials | Add their value even if supplied by others. |
| Labour | Add the labour value. |
| QLeave levy | Include it in labour when the levy applies. |
| GST | Add GST. |
| QBCC premium | Exclude it from the home warranty insurable-value calculation. |
Licensed contractors carrying out residential construction work in Queensland valued at $150,000 (excluding GST) or more must pay the QLeave levy in addition to the home warranty premium. The value used to calculate the QLeave levy is the cost paid by the project owner. The levy excludes GST and is rounded to the nearest dollar.
Why do materials count when someone else supplies them?
The QBCC calculates home warranty insurable value on the basis that all building and other materials are provided by the contractor, even when that is not the actual arrangement.
That is why the material value still counts when materials are supplied by others. The calculation is not limited to materials appearing on the contractor’s invoice or changing according to who purchases or supplies them.
Why is GST included but the QBCC premium excluded?
GST belongs in the calculation because the QBCC includes it in both the home warranty value formula and the stated home warranty project threshold. The QBCC premium is treated differently: the insurable-value definition expressly excludes it. In practical terms, the premium being calculated should not be added back into the base used to calculate that premium.
The QLeave levy has separate cross-calculation rules. The QBCC says the cost of each premium or levy must be included when calculating the other, and that paying either amount first produces the same end result. That does not override the instruction to exclude the QBCC premium from the home warranty insurable value.
How do the $1,000 increments affect the premium table?
Calculate the full insurable value before selecting the QBCC premium-table level.
| Stage | QBCC treatment |
|---|---|
| Insurable-value calculation | Add materials, labour, any applicable QLeave levy and GST; exclude the QBCC premium. |
| Premium-table increments | Premiums increase in $1,000 increments relative to the insurable value. |
| Threshold crossed | If the value is any amount over a $1,000 threshold, the premium moves up to the next level. |
| Final premium rounding | The premium is rounded to the nearest 5c or 10c. |
This means the contractor’s invoice total alone may not be the right table input if it includes the QBCC premium or omits material values supplied by others.
What should be checked before relying on the amount?
The QBCC pages use different wording at the home warranty threshold: one says more than $3,300, while the other says $3300 and above. This distinction matters particularly for a project sitting at that boundary.
Check the current QBCC page, the contract and any Product Disclosure Statement that applies to the relevant policy before relying on a calculation or paying an amount. This is general information, not financial or legal advice.
Sources
- Calculating the premium — Queensland Building and Construction Commission
- What is home warranty insurance — Queensland Building and Construction Commission
FAQ
Does a hot water system count toward the value?
Yes. The QBCC expressly lists hot water systems as associated work. Its cost counts when it is included in the contract.
Do materials count when supplied by someone else?
Yes. The QBCC says to add material values even if they are supplied by others and calculates the value as though the contractor provides all building and other materials.
How does the QBCC treat a project at $3,300?
Its home warranty guidance says insurance is compulsory for work valued at more than $3,300 including materials, labour and GST, while its premium-calculation guidance says the premium applies at $3300 and above. Check the current regulator guidance before relying on the boundary amount.
Are GST and the QBCC premium treated the same way?
No. GST is included in the home warranty insurable value, while the QBCC premium is excluded. Any applicable QLeave levy is included in labour for the home warranty calculation.
What happens just above a $1,000 table threshold?
The insurable value moves into the next premium level. The QBCC premium tables operate in $1,000 increments, and the resulting premium is rounded to the nearest 5c or 10c.
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