How Is the QBCC Home Warranty Premium Calculated? Insurable Value Explained for Queensland Builders

According to the Queensland Building and Construction Commission (QBCC), home warranty insurable value adds materials—even if supplied by others—labour and GST, while excluding the QBCC premium; its premium tables step up in $1,000 increments, and the labour calculation includes the QLeave levy cost for projects valued at more than $150,000 excluding GST (Calculating the premium, updated 6 Dec 2022). The same QBCC guidance says licensed contractors must pay QLeave on residential construction work in Queensland valued at $150,000 excluding GST or more, and that each premium or levy cost must be included when calculating the other; either amount can be calculated first, with the same end result (QBCC, updated 6 Dec 2022). For home warranty insurance itself, the QBCC premium-calculation page says it is payable at $3300 and above (updated 6 Dec 2022), while the QBCC’s homeowner guidance says it is compulsory for residential work valued at more than $3,300 (updated 11 May 2025); check the current regulator page for a project exactly at $3,300.

Figures checked 1 October 2026.

What goes into the home warranty insurable value?

The QBCC calculation is based on the components of the work rather than a single labour figure:

The insurable value is then compared with the applicable QBCC premium table. Those tables increase in $1,000 increments: if the value is any amount over a $1,000 threshold, it moves to the next premium level. The dollar premium must therefore come from the applicable current table rather than from the component values alone.

How do thresholds, GST and rounding affect the calculation?

The QBCC pages provide several distinct rules that should not be merged:

The premium-table increments and rounding rules do not change the eligibility thresholds. The official pages also use different wording at the exact boundaries: more than $3,300 for home warranty insurance on the homeowner page, and both $3300 and above and more than $150,000 in different parts of the premium-calculation guidance. For a project exactly at either boundary, confirm the treatment in the current QBCC instructions.

Which calculation order should a builder use?

The QBCC allows either order:

• QLeave first: Calculate the QLeave levy, include the levy cost when calculating the home warranty insurable value and premium, and then calculate the home warranty premium.
• Home warranty premium first: Calculate the home warranty premium first, include its cost when calculating the QLeave levy, and then calculate the levy.

The calculations are performed differently, but the QBCC says paying or calculating either amount first produces the same end result. This does not remove the need to identify the correct thresholds, GST treatment and rounding rule.

Who pays the premium, and when?

Under the QBCC’s 11 May 2025 homeowner guidance:

• For fixed-price and cost-plus residential contracts, the contractor pays the home warranty premium to the scheme.
• The contractor collects the premium from the homeowner.
• The premium is included in the homeowner’s contract.
• It must be paid before work begins.
• The contractor must include the insurance cost in the quote. Failure to meet the insurance obligation can result in significant penalties.

QLeave is a separate obligation. Licensed contractors must pay it in addition to the home warranty premium when the QBCC’s QLeave threshold applies. For QLeave notification and payment, the QBCC lists 1300 753 283 and levies@qleave.qld.gov.au. The cited QBCC page provides these contact details but does not state a separate QLeave due date, so confirm that timing through the current QLeave instructions rather than applying the home warranty payment date automatically.

How long does cover last?

The QBCC’s 11 May 2025 homeowner guidance says cover lasts for 6 years and 6 months from the earliest of:

• entry into the contract;
• payment of the premium; or
• commencement of the work.

If the residential construction work took more than six months to complete, cover can be extended by 6 months from the cover commencement day.

A separate QBCC homeowner guide, updated 24 Jan 2025, describes structural-defect cover as generally lasting 6 years and 6 months from the contract date, while cover for non-structural work typically lasts around 6 months from completion. The QBCC warns that these are general timeframes and that specific circumstances may vary.

Cover cannot be renewed after it expires, and claim timeframes depend on the type of claim. Because the insurance covers the property, it remains in place if the home is sold, but it cannot be transferred between contractors.

What can the scheme respond to?

The QBCC describes potential claim protection as follows:

A non-completion claim requires a fixed-price residential contract with a licensed contractor. It may apply when the contractor does not or cannot finish the contracted work. The QBCC says cost-plus contracts do not provide non-completion cover because their final price is uncertain, leaving the scheme unable to quantify the homeowner’s loss in the same way.

Defective-work protection may apply when defects are not fixed, and a claim may also arise from subsidence or settlement. After accepting a non-completion claim, the scheme describes additional protection where the building project is damaged by fire, storm, vandalism or theft.

Home warranty insurance pays a maximum of $200,000 on claims. That maximum is subject to the scheme’s limitations and exclusions; it is not a promise that every claim will be accepted or paid to that amount.

What is excluded from the calculation or scheme?

The clearest calculation exclusion is the QBCC premium itself. Scheme eligibility is a separate question. The QBCC’s 24 Jan 2025 guide identifies work that does not require or receive home warranty insurance, including:

• work in or on multiple-unit dwellings with more than three storeys, excluding a mainly carpark storey;
• building work at the site of a registered retirement village;
• building work at commercial or industrial premises;
• work whose amended scope brings its total value below the regulated $3,300 threshold; and
• work on roofed buildings that are not residences, such as farm sheds or horse arenas.

The main scheme guidance also says home warranty insurance:

• applies only to residential construction work;
• does not cover commercial building projects;
• is not home and contents insurance; and
• remains subject to claim limitations and some exclusions.

Being in a listed insurance category does not by itself establish that every part of a building project is insurable. Check the current regulator material and the project’s scope.

What should a builder check before issuing a quote?

Before pricing residential work in Queensland:

1. Confirm that the project is residential construction work and check the current value threshold.
2. Identify whether the contract is fixed-price or cost-plus and explain the different claim protection.
3. Capture the value of associated work included in the contract.
4. Include material values even when someone else supplies the materials.
5. Add labour and GST, but exclude the QBCC premium from insurable value.
6. Check whether QLeave applies and include each premium or levy cost when calculating the other.
7. Select the current QBCC premium table and apply its rounding rule.
8. Include the home warranty insurance cost in the quote so comparisons are made on a consistent basis.

This is general information, not financial or legal advice. Before issuing a quote or relying on a coverage outcome, check the current QBCC regulator page, the contract and any policy PDS supplied for the project.

Sources

• Calculating the premium — Queensland Building and Construction Commission
• What is home warranty insurance — Queensland Building and Construction Commission
• Home warranty insurance: A guide for homeowners — Queensland Building and Construction Commission

FAQ

Is the QBCC home warranty premium based only on labour?

No. The QBCC insurable value includes material values, labour and GST, together with the cost of associated work included in the contract. It excludes the QBCC premium, although the calculation assumes materials are provided by the contractor even when that is not the actual supply arrangement.

Who pays the QBCC home warranty premium, and when?

The contractor pays the premium to the scheme, collects it from the homeowner and includes it in the contract. The QBCC says it must be paid before work begins.

Is the QLeave levy part of the home warranty premium?

They are separate amounts, but the cost of each is included when calculating the other. The QBCC says either amount can be calculated first and the end result will be the same.

How long does QBCC home warranty cover last?

The QBCC states 6 years and 6 months from the earliest of contract entry, premium payment or commencement of work. A 6-month extension may apply if the residential work took more than six months to complete. Specific claim timeframes depend on the claim type.

Does the scheme cover every type of building work?

No. It applies only to eligible residential construction work. Commercial and industrial work, certain non-residential buildings, some multiple-dwelling work and work below the applicable threshold are outside the scheme.