Long Service Leave Payments
This page provides information on how long service leave payments
are made when you take your leave.
When can LSL payments be made?
You can apply to CoINVEST as soon as
- You have 7 or more years service in your service record with
- 7 or more years service with CoINVEST plus other Interstate
- Your employer agrees to the leave (if currently employed).
You can request a claim form via your Worker details on this web
site, or you may prefer to contact CoINVEST for a Long service leave
claim form. If you are currently employed, both you and your employer
need to fill in the details on the form and return it to CoINVEST.
In normal circumstances it takes about 4 weeks to process a claim payment.
How do I know how much LSL I am owed?
You can log on to your own CoINVEST record to check up on your
service record and entitlement to long service leave, and request
a claim form. Click on the Help button at the top of this page for
You can also <contact
CoINVEST between 8:00 am and 5:00 pm to speak to the staff in
our Membership Services branch. They can answer your specific questions
on Long Service Leave matters.
Each year, you will be sent an Annual Statement
of Service, which shows details of your service for the last
financial year, as well as your total service amount and LSL owing.
Qualifying for LSL for more details about how long service leave
What if I'm on night or afternoon shift?
Effective from 1 July 2006, the weekly amount at
which long service leave will be paid will depend on the length
of time you have been on a particular shift.
|How long have you been on Afternoon/Night
||What does this mean for any LSL payment
|Less than 3 months
||Payment will be at your normal rate of pay before you started
on the afternoon/night shift.
|3 to 6 months
||Payment will be the average rate of pay that you have received
over the last 12 months.
|More than 6 months
||Payment will be at the afternoon/night shift rate that you
In all the cases above, eligibility to take leave is subject
to the rules of the scheme.
How is the Rate of Pay calculated?
For workers who are currently employed: CoINVEST
uses the worker's ordinary gross weekly rate of pay, including all
allowances except for travel, fares and overtime payments.
Your employer supplies this information when filling
in the LSL claim form you provide these details when you apply for your payment online.
For workers who are unemployed, on WorkCover
or have left the industry, the same rate as
above is used, but the amount is adjusted to reflect any industry
wide pay rises that have occurred between the last recorded wage
and the taking of the leave.
Working Subcontractors are paid in two
ways, one for the "Worker Service" component of their
LSL, and another way for the service they have contributed for themselves
(see topic, "Working Subcontractors: How do LSL payments work?").
For the "Worker Service" component, they are paid their
last recorded gross weekly wage as a worker, adjusted to reflect
any industry wide pay rises that have occurred between the last
recorded wage and the taking of the leave.
In the case of workers who earn very high wages,
CoINVEST staff will contact the employer to make sure that
no travel, fares or overtime payments are included in the pay rate.
Wage Increases while on LSL
If there is an industry wide pay rise while you are
on LSL, you can still receive that pay rise. You need to provide
CoINVEST with a letter from your employer to advise them of the
amount and effective date of the increase. You will receive an additional
payment for the difference between the old weekly rate and the new
weekly rate, from the date the new rate took effect.
How is LSL Taxed?
If you are currently employed or unemployed,
your long service leave payment is taxed at your usual PAYE rate.
If you have left the industry, your
LSL payment is taxed at a lower rate as an Eligible Termination
Payment. Please note that to qualify for this you need to have completely
retired from the industry (if you are still working, e.g. as a salesperson,
your normal tax applies.) In addition, for Termination payments,
tax is levied at a variable rate according to the proportion of:
LSL for service before 15 August 1978: 5% taxable
LSL for service between 16 August 1978 and 15 August
LSL for service after 15 August 1993: Normal tax
rate for Termination pay.
How are payments made?
CoINVEST makes the majority of LSL payments by direct credit to
workers' bank accounts. This is the method preferred by most people.
You will need to provide the BSB number of your bank on the application
form, as well as your account details.
If you wish, however, you can specify cheque payment when applying
for long service leave.
Whether you are paid by EFT or cheque, you will receive payment
advice in the mail, together with a free gift (specified on the
CoINVEST will also notify your employer in writing of the long
service leave amount paid to you.
Working Subcontractors: How do LSL payments work?
As a Working Subcontractor, you are paid differently according
to whether the LSL you are taking was accumulated as a worker or
as a Working Subcontractor. For your total Long service leave entitlement
you will generally receive:
- A pro rata amount representing your months/years as a worker;
taxed at the normal PAYE tax rate for that wage rate;
- 2. A separate payment for the months contributed for as a Working
Subcontractor, which is a refund of the contributions made together
with interest earned. WSC contributions and interest are set at
a level where this payment would be approximately equal to a worker's
long service leave.
Example: A worker has had 6 years and 3 weeks as a worker
in the industry. He registers as a Working Subcontractor and contributes
for himself for three years.
He is then entitled to long service leave as follows:
- 315 weeks worker service / 60 = 5.25 weeks long service leave
- 36 WSC monthly contributions x 4.34 weeks = 156.24 weeks
service = 2.6 weeks LSL payable as a refund of WSC contributions
together with interest
- Note, the Worker and WSC service together come to over 7
years - otherwise he would not be entitled to LSL in Victoria.
- If he takes 5 weeks long service leave, it will all be paid
as worker entitlement; if he takes all of his entitlement, it
will be paid as 5.25 weeks x Weekly Wage Rate(Payment 1), plus
the refund of his WSC contributions together with interest (payment
Non contributing Working Subcontractors do
not accumulate service. If a non contributing WSC already has over
7 years in the industry as a Worker / Contributing WSC, he will
be paid out for that entitlement and then will not earn any further
Working Subcontractors: How is
pay rate calculated?
The normal CoINVEST rule for LSL payment is that we
pay on the current rate. Many WSCs do not have an applicable
current pay rate, because in most cases they have been working for
themselves for many years.
If a Working Subcontractor does have a "Worker
Service" component in the Long Service Leave payment, CoINVEST
takes the latest known weekly wage rate and adjusts it for industry
pay rises, in the same way as for workers who have left the industry
or who are on WorkCover (See How is the rate of pay
Remember - this is only for the "worker component"
- The service gained as a Working Subcontractor is paid in a different
way. See the previous topic on this page.
Working Subcontractor refunds
Although you cannot qualify for long service leave with less than 7 years' service, if you are a Working Subcontractor and have contributed for yourself, and you leave the industry without qualifying for long service leave, you can get a refund of your own contributions.
If you have more than 7 years recorded service, your invoices plus the interest earned form part of your LSL, which you can take any time.
To apply for a refund, you can either use a normal LSL application form or apply in writing including your bank account details..
If you have accumulated less than 7 years in the industry, you can apply for a refund of your WSC payments.
Refunds of WSC contributions, where there is no LSL entitlement, are refunded without interest.
However, interest payments are considered for illness, incapacity, domestic or other pressing necessity.
Please call CoINVEST to discuss your reason and check your eligibility.
Additional payments (extending your
If you are on long service leave and decide to extend
your period of leave, you need to apply again on a new application
form. If you are employed, your employer also has to indicate that
he/she has approved the additional leave by completing Part B of
Employer liability - what is it?
Some workers may be advised that part of their long
service leave is employer liability, that is, to be paid by a certain
employer. This can happen in two ways:
1. Workers who have been in the industry for a
Portable long service leave in the construction industry was
only introduced in 1976-77 (1983 for Metal and Electrical trades).
Therefore, workers who have extremely early start dates in the
construction industry are governed by rules as to when CoINVEST
begins to be liable for their long service leave.
Building Trades Workers: Any full entitlement of
13.0 weeks for the first fifteen years and 4.33 weeks for every
5 years thereafter, falling due before 21.12.1973, is the
liability of the employer the worker was with at that time.
Metal/Electrical Trades Workers: Any full entitlement
of 13.0 weeks for the first fifteen years and 4.33 weeks for every
5 years thereafter, falling due before 1.08.1983, is the
liability of the employer the worker was with at that time.
This rule doesn't apply to pro rata amounts of LSL - if you were
a Metal trades worker entitled to 12.3 weeks Long Service leave
as at 1.08.1983, that is CoINVEST liability. If you are entitled
to 15 weeks long service leave, only the first "full"
entitlement of 13 weeks is employer liability; CoINVEST will pick
up the other two weeks LSL. How do I know if I have this type
of Employer Liability?
You will be informed on your annual Statement of Service, sent
out every September - it is a separate category on the Statement.
Please notify CoINVEST when your former employer has paid that
2. Workers who have been promoted out of the scheme, or who
perform a mix of on- and off-site work, and are employed continuously
with one employer.
Sometimes, a worker will be entitled to LSL in the usual way,
because of continuous employment with the one employer for 10
years or more (remember, you still need 10 years service if not
covered by the CoINVEST scheme.) If some of the work is covered
under the scheme and some is not, the worker's service record
will show less than 7 / 10 years service credit. However, if the
employer can provide proof that the worker is entitled to LSL,
in these cases CoINVEST will pay its share of the liability while
the employer pays for the proportion of service that is not covered
"Normal" Long Service leave still requires ten years
for a pro rata entitlement. Therefore, if you leave the portable
scheme with less than 7 years service, you cannot qualify for
long service leave at 7 years, even if you have stayed with the
same employer. You will need to wait until you have 10 years service.
Example 1: Worker accumulates 6 years and 26 weeks service under
the CoINVEST scheme. He does not change employers. He is then
promoted to Supervisor with the same employer. His new
job is not covered under the scheme, and he cannot gain any more
service credits with CoINVEST. He cannot apply for leave from
CoINVEST yet because he has less than 7 years service. However,
once he reaches 10 years with that employer he can still take
LSL, and CoINVEST will pay for 5.63 weeks of his entitlement.
Example 2: Worker manufactures plaster elements such as ceiling
roses, but he is only covered when on site. He accumulates 8 years
and 15 weeks service with CoINVEST, but he remains with his employer
for 10 years. When he takes his LSL, CoINVEST will pay for 7.18
weeks of his entitlement. However, he can take his CoINVEST component
before he reaches 10 years, because he has more than 7 years under
How do I know if I have an Employer Liability component in
This kind of Employer Liability does not appear as a separate
category on your CoINVEST record. Your employer will advise you
when you are eligible for long service leave. They need to provide
proof of continuous service to us for CoINVEST to pay its liability.
Long Service Leave Payments with service in different States
If you are resident in Victoria and wish to take LSL,
you only have to apply to CoINVEST in order to take advantage of
the Interstate Long Service Leave scheme. CoINVEST will pay all
of the LSL amount owing, then apply for reimbursement to the other
States/Territories. This means you do not need to make multiple
applications for one period of leave.
Of course, you need to supply your registration number(s)
with other State(s) when applying, to facilitate the processing
of your claim.
Payment rates: If you apply for LSL in Victoria,
your entire LSL claim will be paid at your current rate in Victoria
(see " How is the Rate of Pay calculated?"
on this page).
If you apply for LSL in ACT, South Australia, Western
Australia or NSW, you will be paid at differential rates according
to where your service was gained.
For more detailed information on the Interstate
Reciprocal Benefits scheme for portable LSL, click on the Interstate
link on the navigation bar to the left of this page.
LSL as an Eligible Termination payment (Leaving the Industry)
If you are retiring, you can indicate that you are
leaving the industry by ticking the appropriate box on the LSL application
This means that you receive an "Eligible Termination
Payment" lump sum which is taxed at a lower rate than standard
The tax rates are as follows:
- LSL for service up to 15 August 1978 : 5% taxable at 31.7%.
- LSL for service from 16 August 1978 to 15 August 1993: Taxable
- LSL for service after August 1993: Calculated at normal rate
for Termination payments
Please note that "Leaving the Industry"
doesn't include working interstate or temporary periods out
of the industry, if you intend to return to work in the construction
If a worker has died and has an entitlement to long
service leave with CoINVEST, the executor of the will can apply
for the leave. This will be part of the worker's estate.
From 1 July 2001, the estate of workers with 55
or more days service may claim a pro rata payment for that
The Executor applies for the long service leave payment.
No LSL Application form is required in this case. The claim is paid
to "The Estate of...(worker's name).