A working director is a self-employed person who works in a construction trade covered by the scheme and is the director of an incorporated company, which means it is registered with the Australian Securities and Investments Commission (ASIC). An incorporated company generally has ‘Pty Ltd’ in its company name.
If your business performs building, electrical or metal trades work in the commercial, industrial or domestic sectors, it is a legal obligation to be registered with CoINVEST. This includes projects such as home extensions, renovations and repairs, alterations, demolitions and maintenance work. If you, as the business owner of company, also perform construction, you are required to be part of the CoINVEST scheme as an employee of the business.
Employers must report to CoINVEST on Worker Days & Wages Returns and make contributions to the fund with respect to any individual Working Director or Worker employed to perform Construction work more than five days a month in Victoria.
If an individual Working Director or Worker performs construction work at least two thirds of the time, and the balance of that individual’s employment is spent performing non construction work, employers must report 100% of that individual's employment to CoINVEST. Similarly contributions payable to the fund will be calculated on 2.7% of the individual’s normal full time gross wages.
Working Director Obligations
As a Working Director, you are considered to be both the employer and the employee. This means that there are certain legal obligations your business must fulfil:
Trusts, trustees & companies
Where a company is a Trustee, Directors of the company are employees and must be included on Worker Days & Wages returns if:
- The Director is performing construction trade work covered by the scheme for more than 5 days in the month
- The Director's wage is subject to personal income tax as a PAYG regular income (weekly, fortnightly, or monthly) where tax is withheld at the time of payment and remitted to the ATO
- The Director's wage is subject to the Superannuation Guarantee Charge
If all three criteria are met, the employer must report service for the Director as an employee of the company on Worker Days & Wages returns and pay long service leave contribution charges to CoINVEST.
If all three criteria are not met, the Director is classified as a working subcontractor.
Working Director Claims
Claims for Working Directors can often be more complicated than that of a regular employee as a Working Director has control over what they pay themselves. To substantiate your rate of pay for your claim you must be able to provide CoINVEST with proof of your PAYG wage; we require evidence of three recent payslips and your three most recent annual payment summaries (group certificate).
If your wage is not consistent and you cannot provide proof of your PAYG wage, you are required to record your service with CoINVEST based on the “Minimum Contribution Rate” for your trade. Any subsequent Long Service Leave claim for a Working Director will then be paid out according to this same rate.Minimum Contribution Rate - Building Trades Minimum Contribution Rates - Metal Trades Minimum Contribution Rates - Electrical Trades