If you are in the building and construction industry, you must be registered with the NSW Long Service Corporation, essential for accountants in Sydney. (Other states have similar schemes).
The scheme is available to employees, employers and self-employed. It provides portable long-service benefits for eligible workers in the building and construction industry.
The scheme allows eligible workers to work for different employers or as subcontractors and qualify for a long-service benefit.
Registration in the scheme is required. Employees are required to be registered by their employers. Self-employed contractors may choose to register of their own accord, and employees can also register themselves in certain circumstances.
After 10 years of recorded service, the scheme pays 8.67 weeks based on the award rates of pay. However, their employer and the scheme cannot pay an employee. They need to choose whether to take time off work and receive payment from their employer or not be paid by the scheme. If the employer pays the above award rates, payment by the employer may be more financially beneficial.
Employers can also benefit from the scheme as they can claim payment to reimburse them for part or all of the extended service payment for the period the employee has been recorded with the Long Service Corporation.
The scheme is funded by a levy on building and construction work of $25,000 and above in NSW and is paid by the customer for whom the building and construction work is being performed.
Please note that you must register early to ensure all your employees’ periods of employment or your own work period as a subcontractor are recorded.
Kreston Stanley Williamson Team
*Correct as of February 2018
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek specific advice relating to your particular circumstances. Liability is limited by a scheme approved under professional standards legislation.
