Scheme overview

The Long Service Corporation administers a scheme which provides a portable long service benefit for eligible workers in the building and construction industry in NSW.

All benefits and requirements are determined by the Building and Construction Industry Long Service Payments Act 1986.

The scheme allows eligible workers in the industry to work for different employers or as subcontractors and qualify for a long service benefit that is paid for by a levy on building and construction work in NSW. The levy is collected by the Corporation and its agents and is invested in accordance with NSW Treasury requirements until required to fund long service payments.

Employers are required to advise the Corporation who worked for them during each financial year.  Service is allocated to workers based on this information. Self employed workers can also record service and become entitled to a benefit.  There is no cost to employers or workers to belong to the scheme however, employers do have legal obligations to meet.

The scheme does not have any direct relationship with entitlements to benefits that workers in NSW may have under the Long Service Leave Act 1955. Eligible building and construction workers may become entitled to benefits under both Acts however, both Acts specify that only one benefit may be received for any period of work. Where eligibility for a long service benefit arises under both Acts, the worker must nominate whether to take a payment from the Corporation or a period of paid leave from their employer. Entitlement to an employer benefit can occur where a worker has been with the same employer for 10 years or more. In certain circumstances, benefits may be available for shorter periods. Where the worker takes a benefit from their employer, the employer is entitled to claim a benefit from the Corporation.

An independent Building and Construction Industry Long Service Payments Committee advises the Corporation on key issues of scheme administration and also hears and determines appeals on decisions made by the Corporation which affect workers, employers and in some instances, levy payers.

At a glance from 2010-11 Annual Report

There are over 30,000 employers and 290,000 workers registered with the scheme.  Last year more than 10,000 claims were paid with a value of $59.3 million. 
Since the scheme began in 1975, more than 175,000 claims have been paid with a total value of $713 million.

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