If you operate a business in the construction industry in Victoria, there is a compliance obligation many employers overlook: LeavePlus.

Formerly known as CoINVEST, LeavePlus is Victoria’s portable long service leave scheme for workers in the construction industry. Many employers assume the scheme only applies to builders; however, it covers a much broader range of industries, trades and construction-related work.

Failing to register or make contributions where required may expose businesses to backdated liabilities, interest and compliance issues.

What is LeavePlus?

LeavePlus is a portable long service leave scheme that allows eligible construction workers to accumulate long service leave entitlements even when they move between employers.

Normally, workers become entitled to long service leave after completing seven years of continuous service with one employer. However, construction industry workers often move between projects, sites and employers, making continuous employment with one employer less common.

LeavePlus addresses this issue by allowing eligible workers to build service across the construction industry, rather than with a single employer.

Once eligibility requirements are met, LeavePlus pays the long service leave entitlement directly to the worker.

Prior to 14 August 2023, the scheme operated under the name CoINVEST.

Does LeavePlus Only Apply to Builders?

No.

The definition of the “construction industry” under LeavePlus is much broader than many employers realise.

Industries and trades that may be covered include:

• Building and construction
• Electrical services
• Metal trades
• Landscape gardening
• Floor covering services
• Shop fitting
• Industrial machinery and equipment services
• Watering system services
• Parquetry floor laying
• Non-destructive testing services

If your workers perform construction-related work within these sectors, your business may have obligations under the LeavePlus scheme.

Which Workers Are Covered?

LeavePlus generally applies where workers perform eligible construction or maintenance work in Victoria.

Coverage depends on the type of work performed, rather than simply the industry classification of the business.

Workers performing:

• Building trades work
• Electrical trades work
• Metal trades work
• Landscape or construction-related work
• Other specified construction-related trades work

may fall within the scheme requirements.

The LeavePlus Rules contain detailed definitions, so eligibility should be assessed carefully based on the actual duties performed.

Employer Obligations Under LeavePlus

Employers with eligible workers are generally required to:

• Register with LeavePlus
• Lodge quarterly returns
• Make quarterly contributions for covered workers
• Keep appropriate records

The current contribution rate is 2.7% of gross reportable Ordinary Pay for workers covered under the scheme.

These contributions fund future long service leave entitlements for eligible workers.

Common Risk Areas We See

As accountants, we often find that employers:

• Have never registered despite operating in the construction industry for years
• Assume the scheme only applies to builders
• Incorrectly exclude certain workers from contributions
• Do not properly review subcontractor or working director arrangements
• Miss quarterly reporting obligations
• Do not maintain sufficient payroll and worker records

These issues can lead to unexpected historical liabilities, interest and compliance concerns.

How EH Tax Accountants Can Help

The LeavePlus scheme can be difficult to navigate, particularly where businesses operate across multiple services, trades or worker arrangements.

At EH Tax Accountants, we assist businesses with:

• LeavePlus eligibility reviews
• Registration requirements
• Payroll and contribution assessments
• Compliance reviews
• Record keeping and reporting obligations
• Support with historical exposure and backdated obligations

If you are unsure whether your workers fall within the scheme, obtaining advice early may help reduce the risk of future compliance issues.

For more information regarding worker entitlements and claims, visit the official LeavePlus website.

Need assistance reviewing your LeavePlus obligations? Contact EH Tax Accountants for guidance.