Demolition permit costs: check the calculated work value

Calculation change: 26 November 2025

The BPC explains that the cost-of-building-work formula changed from an estimated value to a calculated value from 26 November 2025. Its guidance says a building permit levy is payable before permit issue where the calculated cost exceeds $10,000. The relevant building surveyor determines the applicable calculation; do not assume a quote headline is the final statutory basis.

What this means for your project

For a homeowner, the practical task is to make budget assumptions visible. Ask whether the demolition price includes preparing permit information, surveyor services and statutory charges, or whether these sit outside the contractor’s scope. Keep separately priced removal packages and later construction costs identifiable. We recommend asking for the person responsible and the allowance basis next to each permit-related line, so a low initial quote does not hide unallocated administration.

Questions before you commit

• Who supplies the cost information and who checks the calculation?
• Which permit and surveyor costs are included in the written quote?
• How will a change in scope affect the documents and allowances?

Bring these questions to your appointed project team. Exccell can discuss the demolition boundary and inspection scope; the responsible professionals must confirm the design, approvals and specialist work for your address.