How the scheme works

Registration in the scheme is essential

The Scheme pays a long service payment to eligible registered workers who have worked in the building and construction industry in NSW during the time of their registration and where this time is recorded in the Scheme.

Eligible workers in the building and construction industry in NSW are required to be registered in the Scheme by their employers. Self-employed contractors may register in the Scheme of their own accord. While employers would normally register a worker new to their organisation, eligible workers may register themselves to ensure they obtain the benefits of the Scheme if they are not certain that their employer has registered them.

Time worked in the NSW building and construction industry must be recorded by the scheme

The time worked in the NSW building and construction industry is recorded from notifications supplied by employers at the end of each financial year or when workers leave their jobs. Self-employed contractors must supply details of their taxable earnings each financial year through a tax agent and this is used to calculate an equivalent time worked in the NSW building and construction industry.

Workers who carry out eligible building and construction work part-time or casually can record the time they work in the building and construction industry in the scheme. The time worked is determined from notifications supplied by their employers at the end of each financial year or when workers leave their jobs.

Amount of the long service payment

The Scheme pays the equivalent of 8.67 weeks pay for 10 years of recorded service. The amount of payment is based on award rates of pay or the rate of pay under a registered enterprise bargaining agreement. Benefits may be payable for workers with less than 10 years of recorded service in certain cases and are calculated on a pro rata basis.

Employers also benefit from the scheme

Employers of eligible workers who are registered with the scheme who pay a long service benefit to a worker under the NSW Long Service Leave Act 1955 can be paid a claim for part or all of that benefit paid. The claim is calculated for that portion of the benefit paid by the employer where the time spent working in the industry by the worker has been recorded by the Corporation. To obtain this benefit the employer must also be registered with the Corporation as an employer in the NSW building and construction industry.

Workers in the building and construction industry who can register

Only persons doing building and construction work in the building and construction industry in NSW may register with the scheme. The Building and Construction Industry Long Service Payments Act 1986 defines both building and construction work and the building and construction industry.

Funding of the scheme

The scheme is funded by a levy on the building and construction work of $25,000 and above in NSW, and paid by the person for whom building and construction work is being performed. The levy collected is invested until required to pay long service payments to registered workers who have worked sufficient time in the building and construction industry and which is recorded by the scheme. The levy and investment earnings are used to the fund the scheme.

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