Are You a Construction Industry Employer?

YOU ARE IN: Ballarat Accountants > eNewsletter/Seminars > Issue 6 - December 2010 > Are You a Construction Industry Employer?

CONSTRUCTION INDUSTRY - CoINVEST Overview - What is It?

 

The Construction Industry Portable Long Service Leave Scheme in Victoria was established by legislation in 1976 to provide paid long service leave to workers in Victoria's construction industry.

The Scheme applies to all employers, workers and working subcontractors regardless of whether they are involved in residential, industrial, civil or commercial work.
In 1992, the business name of CoINVEST was adopted and in 1997 the Scheme was privatised with CoINVEST Limited appointed as Trustee for the Construction Industry Long Service Leave Fund.

The Scheme applies to all employers, workers and working subcontractors regardless of whether they are involved in residential, industrial, civil or commercial work. A sample list of worker job classifications covered includes: carpenter, bricklayer, plasterer, tile layer, painter decorator, plumber or gasfitter, drainer, crane driver, plant operator, shopfitter, welder, signwriter, roof tiler/slater, builders labourer, refrigeration mechanic, electrical worker, plant operator (FEDFA), rigger/scaffolder, on-site fitter/turner/machinist, trade assistant, AWU construction and civil workers and roadworkers, plus many more.

Recent additions include concrete testers, scaffolding yardmen, off site shopfitting work and metal trades maintenance work.

Enquiries regarding worker classifications covered by the Fund should be made to CoINVEST's Membership Services department.

What You Need to Do ?:

If you are a Construction Industry Employer, you are required to submit Worker Service Returns (WSRs) which are due on the 14th of April, July, October and January each year.

All employers, principal contractors, working subcontractors, workers and apprentices in the construction industry must also be registered with CoINVEST.

Employer Contributions

From 1 July 2009, all employers engaged in Victoria's building and construction industry were required to make contributions to the Fund at the contribution rate moved of 2.7% of a worker's gross wage.

All employers in the construction industry - even those with one employee - will need to make contributions. Working directors are classified as employers. No payments will have to be made for apprentices. Smaller businesses that engage family members as workers must also join the Scheme.

Contributions need to be paid every three months when the Service return is submitted. If payment is not received by the due date, interest can be charged at the prescribed amount.

Employers and working directors who do not comply with the rules of the Long Service Leave Scheme will incur fines and be liable to court action.

Contractor or Employee?

It is important that people engaged in the construction industry understand the rights and responsibilities that apply in each category so they are able to gain their rightful benefit.

A key indication that a worker is an employee is the right of the employer to control the way in which the work is performed. Employees are generally directed which tasks to perform, given instructions on how to perform those tasks and perform them within specified working hours.

An independent contractor is not usually subject to this level of control. An independent contractor is more likely to be able to perform work in the manner or using methods they choose, perform tasks in an order determined by them and to work at times most suitable to them.

Visit the CoINVEST Website

The CoINVEST website provides individuals and employers registered with CoINVEST the ability to undertake virtually every task online. Submitting a Service return, updating an address or contact detail, viewing the status of accrued leave and adding new workers can easily be undertaken on the web site.

Employer contribution payments can also be made online.
Workers and working subcontractors can also apply for long service leave online.

 

Visit the CoINVEST website

 

Contact Jamie Johns for further informaton.


Feedback Form
Generate Leads