Portable Long Service in Tasmania is supported by a Trust Fund administered by TasBuild.
Who provides money for the Fund?
The rate to fund a workers long service is approximately 2.5% of an ordinary weekly wage (13 weeks after 10 years),
however should returns be submitted and invoices paid on time a heavily subsidised rate is charged to employers.*
*The subsidised rate initially was 0.7%, from July 2006 the subsidised rate has been 0.3%, from the April 2009 return it is 0.6% and from the October 2009 return it will be 2%
Note: Prior to 1 July 2006 the rate was approximately 1.67% of an ordinary weekly wage (13 weeks after 15 years).
Please note this percentage is not deducted from a workers wage, it is an additional cost borne by the employer. (Any backlog liability upon registration is calculated at the full rate of long service, 1.67% or 2.5% of the workers wage rate on registration).
What if a worker does not qualify for an entitlement what happens to the money?
Employer contributions are not taken from the wages of individual workers, it is an additional cost to the employer. Monies are held in a central fund which is invested, thus enabling the Trustee to offer a heavily subsidised contribution rate to employers within the industry.
When a worker reaches an entitlement, he/she is entitled to a payment based on the number of weeks they have accrued payable at the current rate of pay. This amount is not directly related to any contributions received by a previous employer. Conversely, if a worker fails to reach an entitlement, he/she has not lost any money.