How do you get service credits in the scheme?
The scheme covers workers that are on wages or salary (casual, part time or full time), apprentices, sole traders, workers in partnerships and working directors.
The scheme doesn't cover workers who are employees of Commonwealth, State, Territory or Local Government bodies.
The scheme doesn't cover work on Commonwealth land, also known as a Commonwealth place. Examples of Commonwealth places in NSW include military bases (Holsworthy Barracks, Williamtown RAAF and Wagga Wagga RAAF), office blocks purchased by the Commonwealth to accommodate employees of Commonwealth Government Departments and Sydney Airport.
Service credits are accrued for days worked in the NSW building and construction industry. The maximum number of days credited in one year is 220. This takes into account public holidays, weekends, annual leave etc.
How service is recorded by LSC is determined by your employment status. For employees - service records are updated by their employer(s), either at the end of a financial year or when a worker's employment is terminated.
For contractors - records are updated via lodgement of Self-Employed Worker Certificates of Service each financial year by their registered tax agent.
Where a worker is unsure of their employment status, they should refer to the ATO and Fair Work websites.
Service credits may also be added if a worker applies for missing service or special service credits.
If you are working as an Employee
Employees have their employment in the building and construction industry recorded by the Corporation from information provided by their employers.
Employers are required to register with the Corporation and advise when they start and end workers' employment. Each financial year, employers are required to check and confirm all their registered workers, and their recorded service. From this information the Corporation adds service to the worker's record.
An Annual Statement is made available to each registered worker via the Worker Portal from September through to January, and shows the total recorded service for the previous financial year. It is important that workers check their statements to ensure all their building and construction work performed in NSW is listed, and to notify the Corporation of any missing service.
Further Information
If you're a contractor
Workers first need to determine if they're an employee of the business or a contractor by checking the information available on the ATO and Fair Work websites. If you're a partner in a partnership, a trustee or a working director, you may also be an employee or contractor.
Workers in the building and construction industry who are contractors and want to have service recorded for the purpose of claiming a long service payment must first register as a worker with us.
Once registered, your tax agent will need to lodge a Self-Employed Worker Certificate of Service online at the end of each financial year.
There's no legal requirement for contractors to join the scheme or lodge Self-Employed Worker Certificates of Service if they don't want to.
Calculating days credited for contractors
Credits for contractors are calculated differently to employees. The number of days credited is calculated from the assessable income the worker received from the building and construction work minus prescribed costs incurred in earning that income each financial year.
The prescribed costs are listed in the Regulation to the Building and Construction Industry Long Service Payments Act 1986. When your tax agent lodges a Self-Employed Worker Certificate of Service, they're verifying that the particulars are as declared in the workers income Tax Return for the same period.
For more information and examples of prescribed costs or how service is calculated for contractors, read the Contractor Guide.
Working directors employed by own company
Working directors or family members of the owner/directors who are performing eligible building and construction work can join the scheme.
Workers who do office/administration work or sales are not eligible to record service.
Working directors who do eligible work for only part of the time, can have service recorded on a part time basis. Service credits can be recorded for a full day where eligible work is performed for more than half the workers ordinary workday. Eg. In an 8-hour ordinary workday, 4 or more hours must be spent doing eligible building and construction work.
A working director needs to register as an employer and record service for their employees, including themselves.
Recognition of past work
Sometimes employers forget record service for their employees, or they may cease trading without finalising their obligations. Workers often do not realise that an employer has not fulfilled their obligations, until they check their Annual Statement.
It is not always possible to obtain service records from an employer. Sometimes the employer cannot be located, has ceased trading or is in liquidation. When this happens, it may still be possible for a worker to have credits allocated to their record, if the worker can provide suitable evidence to support the period of employment.
If the work was performed more than two (2) financial years in the past, it may still be considered if there are special circumstances to explain the reasons why the worker did not advise us of the missing service earlier.
To apply for recognition of past work, complete the Missing Service Application and provide suitable evidence.
Suitable evidence must include at least ONE document from the Primary Evidence list and if the primary evidence document does not show ALL of the following information, then further primary and/or secondary evidence documents will be required.
Proof of employment documentation MUST show evidence of the following:
- Work performed during the period requested - Description of the type of work you performed
- Cover the full period requested - Start and End date
- The employer details - Employer name and/or ABN
- The worker details - Your full name.
The only acceptable proof of employment for a working director and family members is individual tax returns from the Australian Taxation Office.
Example of suitable evidence:
A worker, whose tax return doesn't clearly indicate the work performed, would need to supply other documentation from the suitable evidence list which includes the type of work they did over the entire period.
For more information:
NOTE: Please cross out your tax file number when providing proof of employment.
Employer not trading
Sometimes when an employer ceases trading, service records are not lodged before the business winds up. When this happens, the worker can provide suitable evidence as proof of employment. If the work was performed more than two (2) financial years in the past, it may still be considered if there are special circumstances to explain the reasons why the worker did not advise us of the missing service earlier.
To apply for missing service, complete the Missing Service Application and provide suitable evidence.
Suitable evidence must include at least ONE document from the Primary Evidence list. If the primary evidence document does not show ALL the following information, then further primary and/or secondary evidence documents will be required.
Proof of employment documentation MUST show evidence of the following:
- Work performed during the period requested - Description of the type of work you performed
- Cover the full period requested - Start and End date
- The employer details - Employer name and/or ABN
- The worker details - Your full name.
The only acceptable proof of employment for a working director and family members is individual tax returns from the Australian Taxation Office.
Example of suitable evidence:
A worker, whose tax return doesn't clearly indicate the work performed, would need to supply other documentation from the suitable evidence list which includes the type of work they did over the entire period.
For more information:
NOTE: Please cross out your tax file number when providing proof of employment.
Accepting long service payments from employers who have ceased trading
If you are offered a long service entitlement as part of a termination payment by a liquidator, we recommend you first check with us before accepting this payment.
Sometimes payments offered by the liquidators are less than your full entitlement.
Recording service during COVID-19? Read this news article
Missing work from your record? Read our fact sheet. PDF, 171.51 KB
