Construction Benefit Services started a scheme in 1977 to relieve employers of the major expense of providing for their worker's long service leave.
This followed negotiations during the mid 1970's, when employers and unions decided workers should receive long service leave based on their service to the industry, as they tend to change jobs more often and not stay with the one employer long enough to accrue long service leave under normal State provisions.
The scheme in the construction industry is portable, which means workers receive 13 weeks long service leave after 10 years work in the industry, irrespective of how many employers they have worked for.
Although compulsory by South Australian law, the scheme is a cost effective way of ensuring workers receive long service leave at minimal cost to employers.
Every 2 months, employers are required to send details of all workers they employ to Construction Benefit Services, with a levy payment based on a percentage of each worker's remuneration (excluding apprentices). The levy is tax deductible in the financial year it is paid and covers the cost of future long service leave claims and scheme administrative costs. It must not be deducted from your worker's pay.
The scheme is governed by the Construction Industry Long Service Leave Act 1987 and managed by Construction Benefit Services which is an industry represented Board.
The current levy rate is 2.25%.