Building, construction and contract cleaning workers: Have you claimed your Long Service Leave?

What is Long Service Leave?

Long Service Leave affords the opportunity for an extended break from work.

Portable long service leave schemes were introduced by the construction and contract cleaning industries so that employees could still enjoy the same benefits as other industries.

Prior to the introduction of these schemes, many workers in theses industries were unable to qualify for an entitlement for leave under the Long Service Leave Act as they did not remain with the same employer for a long enough period.

How does it work?

All construction/cleaning industry long service leave schemes are run at the state level. Therefore, appropriate information must be obtained from the state government websites relevant to you.

Each state runs slightly different schemes. While most have a fund that employers make contributions to, in NSW employers do not pay direct contributions. Instead, a levy is paid on building and construction work of $25,000 and above, paid by the person for whom the construction work is being performed. This applies to both employed and self-employed individuals in the construction industry.

Employees will receive their long service leave irrespective of which employer they are with, and the employer is fully reimbursed.

Employer obligations

Employers are required to register with the Long Service Corporation if they operate in the contract cleaning or building and construction industry. Employers must lodge their employees start and end notices as well as all relevant records. They must ensure employees have a Long Service Corporation registration number and that it is included on all notices. This goes for employees even if for only one day.

Prior to paying the long service leave, an employer must advise the Corporation before the payment is made. This is to prevent workers from duplicating payments for any period of work.

Building and construction/contract cleaning employers are required to submit an annual activity record of any workers they have employed for this purpose. This should outline how much work each worker has done within a month of the end of the financial year. These can be completed and lodged throughout July following the start of the new financial year.

If you do not make a submission by 31^st July of each financial year, your business be targeted by the Corporation for an audit of your records.

How we can help

If you work in the building, construction or contract cleaning industries and wish to make a claim, you need a registered Tax Agent to submit a claim for each year. TaxAssist Accountants can provide this service and can also lodge any previous years’ claims. Give us a call on 08 6245 7506 or make an enquiry here.

Date published 11 Jan 2024 | Last updated 11 Jan 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.