News

IMPORTANT INFORMATION: Increase to the Building & Construction levy rate

30 January 2024

2 contruction workers, one male and one female, engaged in conversation

Effective from 1 October 2024, the employer levy rate for the Building and Construction Industry Portable Long Service Leave Scheme will increase to 2.75% from 2.35%. An email advising of the change was sent on 30 January 2024.

The Long Service Leave (Portable Schemes) Act 2009 requires that the financial position of each scheme is reviewed at least once every three years, including undertaking an assessment of the appropriateness of the levy rate. A review of the Building and Construction Industry scheme completed in late 2023 has identified that an increase to the levy rate is required to ensure the fund continues to maintain sufficient assets to cover its long-term liabilities. Following the review, the Governing Board of ACT Leave has recommended an increase to the levy rate, effective from 1 October 2024. This means the new levy rate will be payable from the October-December 2024 return period, due 31 January 2025.

While this levy rate change is not payable until January 2025, we appreciate the importance of providing employers as much notice as possible to accommodate the change.

 

Do I need to do anything different when lodging my October–December 2024 return?

No, you will lodge your quarterly return in same way you normally do. Once you have submitted your employee data (personal information, ordinary gross salary, and wages etc.) the new levy rate will be automatically applied, and you will be advised of the levy payable for the quarterly return.

What levy rate applies to any previous quarterly returns?

The new levy rate is effective from 1 October 2024 onwards. For any quarterly return periods prior to this date, the levy rate in effect at that time will continue to apply. The levy rate history for the Building and Construction Industry scheme can be found on our resources page.

There was a change to the levy rate in October 2023, why is it changing again?

ACT Leave is required to assess the financial position of the scheme at least every three years. The scheme review in late 2023 showed that due to a range of economic and demographic factors, the levy rate would need to increase to maintain sufficient funding to cover long term liabilities.  

More information

If you have any questions regarding this information, please contact us by emailing enquiry@actleave.act.gov.au or phoning 02 6247 3900.

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