We cannot give you advice on the deductibility or otherwise of the contributions and encourage you to seek independent tax advice. Generally speaking the contributions are not tax deductible. When you claim long service leave, tax will not be withheld from the contributions you have paid into the scheme (they are simply refunded to you).
How do I apply for a payment?
Complete an Application Form. Please allow us a couple of weeks to process your payment.
How will my payment be calculated?
Payment for the weeks of leave accrued as an employee will be paid at a weekly rate of pay. If you have had service recorded as a worker within the last 12 months the weekly rate will be determine by averaging your weekly earnings within the 12 months before you claim. If you have not had service recorded for 12 months you will be paid an average industry rate (calculated using the weekly pay of workers in your classification of work who received a long service leave payment in the preceding financial year).
Payment for the weeks of leave accrued as a Self-Employed Contractor are calculated from the contributions paid into the scheme plus the accrued interest. Please note the interest component is only payable if you have accrued more than 2,600 service days.
Will my payment be taxed?
Tax will be withheld from the weeks of long service leave accrued as an employee. Tax will not be withheld from the contributions paid into the Self-Employed Contractor Scheme or the accrued interest, however the interest amount is taxable and will be displayed on your PAYG payment summary for inclusion in your tax return.
Can I claim a payment instead of taking leave?
We hope you can take a break to relax and recharge, but if you need to Self-Employed Contractors can work during their period of leave.
What happens if I have a break from or leave the construction industry?
You can stop recording service days with this scheme for up to 2 years (if you have less than 1,300 service days) or up to 3 years (if you have more than 1,300 service days but less than 1,820 service days). If you do not record service within this timeframe, your service days will be cancelled. You may apply for a refund of the Self-Employed Contractor contributions paid into the scheme, but you will not receive payment for the weeks of leave accrued as an employee.
What happens if I am registered as a Self Employed Contractor but I then form a company?
If you would like to continue making contributions, you will need to register in the scheme as a Working Director. Please complete a Working Director application and an Employer Registration form.
What happens if I leave South Australia and work interstate?
If you are working in the construction industry you will need contact the portable long service scheme in that State or Territory to check that you can be registered (as not all have Self-Employed Contractor schemes). Information regarding interstate service can be viewed here.
What happens if I stop being self-employed and become an employee again?
Ensure that your new employer registers you with the scheme so your service days can continue to accrue.
Do I receive statements?
Yes, each year you will be able to login to view a service statement that shows the number of service days accrued and your current leave entitlement, as well as a statement showing the payments made into the Self-Employed Contractor scheme.