Are the contributions that my company pays tax deductible?
We cannot give you advice on the deductibility or otherwise of the contributions and encourage you to seek independent tax advice. Generally speaking as the contributions are paid on behalf of a Working Director (who is an employee) a tax deduction may be applicable.
How do I apply for a payment?
Complete an application form. Please allow us a couple of weeks to process your payment and deposit the payment into your bank account.
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 determined 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 Working Director 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?
Yes, tax will be withheld from both the weeks of leave accrued as an employee and as a working director. If you are paid interest, tax will not be withheld, however the interest amount is taxable income and will appear 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 Working Directors 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 payment of the working director contributions paid into the scheme, but you will not receive payment for the weeks of leave accrued as an employee.
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. Information regarding interstate service can be viewed here.
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 Working Director scheme.