Claims

Entitlement

Building and construction industry workers registered on or after 1 January 1997 are entitled to 13 weeks of long service leave after 10 years of recorded service in the industry, and continue to accumulate 1.3 weeks of leave for every year thereafter.

How do workers get access to their benefit?

Workers can submit a claim form to the Authority for processing. See below for a list of the types of claim available to workers and their legislative conditions.

The Authority will pay the worker’s benefit directly into their nominated bank account.

How much do workers get paid?

Employees will be paid an amount calculated by multiplying the number of weeks of long service leave being taken and the average weekly ordinary wages of the worker.

The average weekly ordinary wages for the worker will be:

1. if the worker is not receiving compensation under the Workers Compensation Act 1951, the highest of:
  1. weekly average of ordinary remuneration received in the last 2 quarters of recorded service; or
  2. weekly average of ordinary remuneration received in the last 4 quarters of recorded service.
2. if the worker is receiving compensation under the Workers Compensation Act 1951, the weekly average of ordinary remuneration received by the worker during the 4 quarters before the injury occurred

Contractors will be paid a refund of the total levy contributions they made, plus interest earned.

If a worker has recorded service as both a contractor and as an employee, then the amount paid will be the sum of their employee component and their contractor component calculated as above.

Tax

The Authority will deduct income tax on the employee component of a claim, according to ATO guidelines.

Marginal rates will apply to most long service leave payments. Some lump sum termination payments may be taxed at a different rate. Refer to the ATO website for more information.

The Authority does not currently deduct income tax on the contractor component of a claim. Contractors should declare the refund of contributions and interest as income on their tax return for the year in which the payment was made.

Claim types

Workers can access their benefit though one of the following claim types:

Claim type	Information
Long service leave	Who can apply? Employees with 10 or more years of service, who are still recording service and wish to take paid long service leave from their current employer. Conditions Employee must have a minimum of 10 years of recorded service Employee must take a minimum of 2 weeks of long service leave each time they claim Employer must approve the period of leave requested Form Employee Claim Form
Long service leave payment only	Who can apply? Employees with 10 or more years of service, who are still recording service and wish to collect a payment instead of taking leave from their current employer. Conditions Employee must have registered prior to 1 July 2012 Employee must have a minimum of 10 years of recorded service Employee must take a minimum of 2 weeks of payment each time they claim, if not claiming the whole entitlement Employee must be currently employed Form Employee Payment Claim Form
Lump sum payment	Who can apply? Unemployed workers or contractors with 10 or more years of service. Conditions Worker must have a minimum of 10 years of recorded service Worker must take payment equivalent to a minimum of 2 weeks of payment each time they claim, if not claiming the whole entitlement Worker must be unemployed or registered as a contractor Form Employee Claim Form
Leaving the industry	Who can apply? Workers with less than 10 years of service who wish to take a lump sum payment of their pro-rata entitlement after ceasing to work in the industry permanently. Workers with 10 or more years of service should refer to Lump Sum Payment instead. Conditions Worker must have a minimum of 5 years of recorded service (if registered prior to 1 July 2012), or 7 years of recorded service (if registered on or after 1 July 2012) Worker must sign a statutory declaration indicating that they have permanently left the industry and stating their intended occupation A mandatory waiting period of 20 weeks after ceasing work in the industry applies Form Leaving the Industry Permanently
Age retirement	Who can apply? Workers with less than 10 years of service who wish to take a lump sum payment of their pro-rata entitlement after retiring. Workers with 10 or more years of service should refer to Lump Sum Payment instead. Conditions Worker must be 55 years or older, or have been granted a service pension under the Veterans Entitlements Act 1986 (Cwlth), section 38 (Eligibility for partner service pension) Worker must have a minimum of 55 days of recorded service (if registered prior to 1 July 2012), or 5 years of recorded service (if registered on or after 1 July 2012) Form Age Retirement Claim Form
Total incapacity	Who can apply? Workers with less than 10 years of service who wish to take a lump sum payment of their pro-rata entitlement after becoming totally incapacitated. Workers with 10 or more years of service should refer to Lump Sum Payment instead. Conditions A medical practitioner must complete the Certification by Medical Practitioner section of the claim form Worker must have a minimum of 55 days of recorded service (if registered prior to 1 July 2012), or 5 years of recorded service (if registered on or after 1 July 2012) Form Total Incapacity Claim Form
Deceased	Who can apply? Executors, legal representatives or beneficiaries of a deceased worker who wish to collect a lump sum payment of the worker’s pro-rata entitlement. Conditions Applicant to provide a copy of the death certificate Applicant to provide a certified copy of the will (if appropriate) Applicant must complete a statutory declaration For workers registered before 1 July 2012: worker has a minimum of 5 years of service; or worker has a minimum of 55 days of recorded service and was deceased within 4 years of last recorded service For workers registered on or after 1 July 2012: worker has a minimum of 7 years of service; or worker has a minimum of 5 years of service and was deceased within 4 years of last recorded service Forms Deceased Claim Form (Has Will) Deceased Claim Form (Does Not Have Will)

Claim processing time

The Authority has a claim payment run once a week. If no further information is needed from your current/past employers or interstate jurisdictions to process your claim, then the payment will usually be scheduled within 1 week of the date you are starting your long service leave (dependent upon when claim form is received). For lump sum and leaving the industry claims, the payment will be processed usually within 10 working days of any required information being received/confirmed with your past employer/s or interstate jurisdictions.

Building and Construction Industry