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. However, the scheme does not cover workers who are employees of Commonwealth, State, Territory or Local Government bodies.

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 the Corporation 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 relevant information available on the ATO and FairWork 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 are a Contractor

Workers first need to determine if they are an employee of a business, or a contractor. To determine this, contact the ATO or FairWork for more information. If you are 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 the Corporation.

Once registered with the Corporation you need to have your tax agent lodge a Self Employed Worker Certificate of Service online at the end of each financial year. If you or your tax agent prefers to complete paper certificates, you can request certificates by calling our Helpline on 13 14 41.

There is no legal requirement for contractors to join the scheme or lodge Self Employed Worker Certificates of Service if they do not 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 Regulations to the Building and Construction Industry Long Service Payments Act 1986.  When your tax agent lodges a Self Employed Worker Certificate of Service they are 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 click on the links below.

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) years ago, 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 Are you missing work from your record form 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.

  1. Work performed during the period applied for,
  2. Employment through the period applied for,
  3. The employer details, and
  4. The worker details.

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) years ago, 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 Are you missing work from your record form 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.

  1. Work performed during the period applied for,
  2. Employment through the period applied for,
  3. The employer details, and
  4. The worker details.

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.

Missing work from your record?  Read this document

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