New Rates For Self - Employed Contractors & Working Directors 19/08/2008
In June, the Board acted on a recommendation from its actuary to increase the contribution amount payable by $10 to $165. This increase is effective from the July/August 2008 return period.The interest rate payable on these contributions has also been increased from 6.4% to 7.8%.The contribution rate and earning rate are reviewed annually and when justified, increased to ensure the real rate of contributions is maintained over time. This ensures working directors/contractors can receive comparable remuneration during their period of leave.
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Levy Rate Reduced to 2.25% 18/01/2008
The Board is pleased to announce the levy rate has been reduced by 0.25% to 2.25%, operative from the 1st January 2008, following a variation to Regulation 9 of the Construction Industry Long Service Leave Act, 1987.The new rate will apply to levies payable for the January/February 2008 return period onward.The reduction will save construction industry employers approximately $1 million annually.Apprentices employed will continue to be levy free.
Board Celebrations 30/10/2007
On Tuesday 2nd October representatives from the construction industry, former Board members and representatives of the Government and Opposition, attended the Board’s “30 Years On” celebratory dinner. The function was an outstanding success showcasing the achievements of the various Boards since the scheme’s inception in 1977 when it was widely regarded as a pilot for the building and other industries.The Board’s Presiding Officer Margaret Sexton welcomed guests from the South Australian industry and interstate schemes. Ms Sexton informed guests the South Australian scheme continued to operate with one of the lowest costs per client across the nation. This had contributed in part to the Construction Industry Fund’s reserve of $9.53 million at 30th June 2007.The Minister for Industrial Relations was represented by the Hon. Bernard Finnigan. Mr Finnigan praised the Board in meeting the demands of providing portable long service leave for construction industry workers within South Australia and across state and territory borders through the National Reciprocal Agreement. Mr Finnigan also commended the Board for its competence and professionalism in being selected by the Northern Territory Government to provide consultancy and administrative services in setting up a similar scheme in the Northern Territory.The night reinforced the importance of all stakeholders working together to ensure the ongoing success of the construction industry in this State.The occasion was perhaps best summed up by the Chief Executive Officer Mr Ian Hopkins. “Clearly what we do we do well and we are here to stay.”
"The Benefit" Competition Winner 10/10/2007
Congratulations to Dennis DeSimoni of Athelstone for winning the CBS competition run in conjunction with this year's edition of "The Benefit".Dennis accessed his long service leave details via our website and correctly identified the entry word as "LEAVE".Dennis works for Chubb Fire Safety and has been registered with CBS since May 1999.
New Board Appointed 26/09/2007
The new Board was recently appointed for a term concluding on 30 June 2012.The Board consists of seven members appointed to represent the interests of workers and employers in the construction industry.The members are:Presiding OfficerMargaret SextonEmployer RepresentativesJim WhitingSteven HallRick CairneyWorker RepresentativesColin FenneyBob GeraghtyBen CarslakeDeputy MembersSteven MinuzzoKevin KellyJohn CamilloDoug BuchananMartin O'Malley
30 Years On 07/08/2007
In the early seventies building industry unions approached the Government seeking improved conditions of employment in the form of long service leave. The nature of the industry prevented workers from accumulating sufficient service with the one employer to become entitled to long service leave under the State Long Service Leave Act.In the 1973 policy speech, the Premier indicated the Government would introduce a long service leave benefits scheme for building workers based on the aggregation of their service to the industry.In February 1974, the Government appointed a tripartite committee to examine the financial arrangements and operational requirements necessary to establish the scheme. Historical documents indicate the unions wanted “something at least to start with, even though it is not exactly what we want.” Conversely the employers saw “no need to legislate in this way because it comes out as a type of social service payment rather than as leave for rest and recuperation purposes.”The Long Service Leave (Building Industry) Bill passed both Houses of Parliament in February 1976 after protracted debate. At that time Parliament proclaimed a 1st April 1977 date of operation for what was considered a pilot scheme for the building and other industries.… AND 30 YEARS ON· 82,540 workers have registered with the scheme.· $76.5 million has been paid out in claims.· 80% of workers currently employed with a long service leave entitlement, have accrued service with more than one employer.· The net assets of the Construction Industry Fund at 30th June 2007 exceed $60 million.· Portability has been extended to movement between the States through a National Reciprocal Agreement.
NEW $155 CONTRIBUTION & 6.4% INTEREST RATE FOR SELF-EMPLOYED CONTRACTOR AND WORKING DIRECTOR SCHEME 27/06/2007
The self-employed contractor and working director contribution rate will increase from $145 to $155 effective from 1st July 2007 and apply to returns lodged in respect of July/August 2007 onward.The new rate takes into account the amount required to support future normal long service leave entitlements. It is reviewed annually to ensure its real value is maintained.Contributions will earn an annual rate of interest of 6.4% in 2007/2008.Since its inception in 1995, the voluntary scheme has enabled 1600 self-employed contractors and working directors to preserve their prior accrued service and continue to work towards their long service leave entitlement. 473 are currently contributing to the scheme.
RECORD $7,000 FINE IMPOSED BY COURT 16/03/2007
The Board was recently successful in prosecuting an employer who failed to lodge returns and levies by the due date.The Court made an order in the Board’s favour that included a total fine of $7,000 and costs of $2,500.The Chief Executive Officer Mr Ian Hopkins said “the Court’s decision reinforced the Board’s zero tolerance approach to cases of non lodgement of employer returns and levies. Employers can avoid litigation by ensuring returns and levies are submitted within 21 days after the end of each billing cycle.”
Worker Service Certificates 07/08/2006
The Board continues to receive enquiries from workers regarding the issue of Annual Worker Service Certificates.In 2003, the Board sought to encourage workers to access personal long service leave records via the Board’s web site. The 2003 Certificate included details of a password for this purpose. Online access provided an improved service enabling workers to monitor their accrued service on an ongoing basis. It was foreshadowed at the time that future Certificates would only be provided upon request.The Board is currently processing outstanding May/June employer returns. When completed, the 2006 Certificate will be issued to workers who have requested this format. This is scheduled to occur late August.If you wish to use the online services facility but have misplaced your username and password, or if you are unsure about how to use this facility, please contact one of our client liaison staff who will be happy to assist. Alternatively, contact the Board to request a copy of the Certificate be sent to you.
Increase in Contribution Rate for Self-employed Contractors and Working Directors 20/07/2006
The Board recently announced an increase in the contribution rate for self-employed contractors and working directors from $120 to $145, effective from 1st July 2006.The contribution rate of $145 takes into account the amount required to support future normal long service leave entitlements. It is reviewed annually to ensure its real value is maintained.Contributions will earn an annual rate of interest of 5.99% in 2006/2007.This voluntary scheme enables self-employed contractors and working directors to preserve prior accrued service and continue to work towards a long service leave entitlement.Testimony to the success of the scheme are the 1500 registrations which have occurred since its inception in 1995.
Prosecution Activity on the Increase 19/07/2006
The Board has adopted a more proactive approach to encourage a higher rate of compliance on the part of employers requiring to be registered and the subsequent lodgement of returns and levies by the due date.Follow up of outstanding returns is time consuming and adds to the scheme’s operating costs which inturn has some effect on the levy rate paid by employers.Legal action taken against an employer for late lodgement of returns and levies resulted in a fine of $1500 plus costs of $350.A further five employers have been summonsed to appear in court for similar breaches under the Act.
National Workshop Seeks Improved Cooperation and Reduced Costs 18/07/2006
While acknowledging all state construction industry long service leave schemes operate under different legislation and structures, a national workshop of respective Chairs and Chief Executive Officers was held earlier this year to launch a study of how increased cooperation and formal alliances could benefit the industry in the form of reduced operating costs and improved service delivery.The first step in this initiative has been to analyse coverage provided by each scheme. Uniformity of coverage (and governing legislation) is important in the context of workers moving between the jurisdictions under the National Reciprocal Agreement.A progress report will be presented to all state Boards at this year’s National Conference.
