Charges

Self-employed working subcontractors can pay charges to the Fund to keep their long service leave entitlement building up with LeavePlus.

Self-employed subcontractors operating under a Sole Trader or Partnership ABN must register themselves with LeavePlus as a subcontractor. Subcontractors can choose whether or not to make contributions for themselves to LeavePlus to build up their Long Service Leave.

If you choose not to make any contributions, no service will be accrued against your name. You will not be able to claim any Long Service Leave from LeavePlus if you have not accrued seven or more years of continuous service.

Subcontractors who employ workers or apprentices in a trade covered by LeavePlus are obliged to cover the LSL contributions for their employees and must register their business with LeavePlus. If you have formed a company, you have different obligations under the law as a business owner.

How Do I Make Contributions For Myself?

Subcontractors can choose to pay charges towards their own long service leave of $70, $120 or $170 per month (paid quarterly). If you elect to make contributions the payment is directly credited against your name – similar to a bank account. Interest is paid on accrued contributions with the rate set yearly in advance by LeavePlus, which provides a rate of return in line with prevailing market conditions.

Invoices for these charges are issued quarterly. If you do not pay two consecutive invoices, then you are deemed to be non-contributing and invoices will no longer be issued. If you wish to recommence paying again, email us at info@leaveplus.com.au with your request and we can set you up to get invoices again. Note, you are unable to backdate any missed invoices and you must continue to perform covered work in the construction industry in Victoria as sole trader or in a partnership.

If you choose to make payments, you are required to contribute quarterly. You can choose to pay either $70, $120 or $170 for each month you worked. An email will be sent to you at the end of each quarter detailing the available contribution options. See the below table for a detailed breakdown:

Monthly Rate	1 MONTH TOTAL	2 MONTH TOTAL	3 MONTH TOTAL
$70p/m	$70	$140	$210
$120p/m	$120	$240	$360
$170p/m	$170	$340	$510

The amount you contribute directly affects what you get out when you claim your long service leave. The more you put in, the more you get out, and the more interest you will accrue.

For each year of accrued service you will still accrue the same amount of ‘leave weeks’: 1.3 Weeks per year of service. However, what those 1.3 Weeks mean to you in terms of monetary payment is determined by exactly how much you put in.

Can amounts change from one period to another?

Yes. For example; a working subcontractor can elect to pay $120 per month for one three-month period ($360 total) then change to $170 per month for the next period ($510 total).

However, variation within a period is not allowed (such as, $70 each for January and February and $120 for March).

Our preferred method of payment is via BPAY. Each contribution is a unique transaction and therefore has a unique BPAY reference number for each three-month contribution period. This means it changes every single time.

The BPAY reference must never be used more than once. If you do, your money will not be allocated against the correct invoicing period, you will not get the service credits for that three-month period, and you will not accrue any interest component for that contribution amount. This also means you cannot set up a direct debit or recurring transaction through your bank for these payments.

In short, make sure you treat it as a unique transaction each time; use the exact reference on your subcontractor contribution form for the specific three-month period you’re trying to pay for, and you should have no problems.

The interest component on subcontractor contributions is accrued on the whole balance, inclusive of contribution amounts and previously accrued interest balances. Interest is only paid on long service leave claims once you have accrued seven or more years of continuous recorded service.

If you decide not to pay charges towards your portable long service leave with LeavePlus, you will not build up any service and no entitlement will accrue.

However, if you have any previously accrued entitlements from service as a worker or apprentice, then the available entitlement is still yours to claim at any point from LeavePlus.

If a self-employed working subcontractor leaves the industry before accruing seven years eligible service, LeavePlus can refund the voluntary charges paid; this request will need to be submitted to us in writing. Any refunds will be inclusive only of the contributions paid in by the subcontractor on their own behalf – you will not be entitled to any of the accrued interest, nor any entitlement pertaining to service accrued as a worker.

If you have built up more than seven years of continuous service with LeavePlus, you can claim the balance of any entitlement as a worker and as a self-employed subcontractor by applying to claim your long service leave entitlement via the LeavePlus member portal.

If you have formed a company, you are no longer a self-employed subcontractor. Instead, due to the way that company ABNs are structured, you are classed as a Working Director and therefore an employee of your own business. You will need to consult our Business Owners page, as your obligations in the industry will have changed.

If this is the first time you have registered with LeavePlus as a contributing subcontractor, you have the option to pay contributions for the preceding two invoicing periods (quarters), up to a maximum of six months into the past.

If you have previously registered with us as a Working Subcontractor but have chosen not to make any contributions in the past, you will not be eligible to backdate any subcontractor service. As long service leave charges are optional for self-employed subcontractors, if you opt not to contribute at the time, then you lose out on that time.

Self-employed subcontractors can apply for a refund of any voluntary long service leave charges before they have accrued the required seven years of continuous service.

A refund of your subcontractor contribution charges comprises only the contributions you have put in. You will not be entitled to any accrued interest component if you have not built up seven years of continuous service.

All requests for refunds must be made to LeavePlus in writing.