As a Working Subcontractor, you can make optional contributions to the fund to keep your Long Service Leave liability accruing with CoINVEST.
Self-employed subcontractors operating under a Sole Trader or Partnership ABN must register themselves with CoINVEST as a subcontractor. Once registered, a subcontractor can choose whether or not to make contributions for themselves to CoINVEST 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 CoINVEST if you have not accrued seven or more years of continuous service.
Subcontractors who employ workers or apprentices in a trade covered by CoINVEST are obliged to cover the LSL contributions for their employees and must register their business with us. See Working Subcontractor Responsibilities for more details. If you have formed a company, you have different obligations under the law – click here for details.
How Do I Make Contributions For Myself?
Subcontractors can choose to make contributions towards their own long service leave of $50, $100 or $150 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 CoINVEST, which provides a rate of return in line with prevailing market conditions. The interim interest rate for financial year 2021/2022 is 8.79%.
Invoices for these payments 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 firstname.lastname@example.org 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 $50, $100 or $150 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|
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 $100 per month for one three-month period ($300 total) then change to $150 per month for the next period ($450 total).
However, variation within a period is not allowed (such as, $50 each for January and February and $100 for March).
CoINVEST’s 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.
You must never use the same BPAY reference 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.
For more information on payment methods, please visit the How Do I Pay My Quarterly Voucher page.
The interest component of any balance accrued as a subcontractor is calculated and credited to a subcontractor’s account monthly.
Any interest is accrued on the whole balance, inclusive of contribution amounts and previously accrued interest balances.
If you decide not to make payments you will not gain any credits towards your long service leave.
However, if you have any previously accrued entitlements from eligible service prior to becoming a subcontractor, then the available entitlement is still yours to claim at any point from CoINVEST.
If a Working Subcontractor leaves the industry before accruing seven years eligible service, CoINVEST can refund the payments made by the Working Subcontractor; this request will need to be submitted in writing to us. 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 formed a company, you are not a 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 Working Directors page, as your obligations in the industry will have changed.
If this is the first time you have registered with CoINVEST 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 WSC service. As it is an optional scheme for subcontractors, if you opt not to contribute at the time, then you lose out on that time.