The cost of funding long service leave is approximately 1.67% of an ordinary weekly wage (13 weeks after 15 years) or 2.5% (13 weeks after 10 years).
However, should the employer submit their returns on time (by the 14th day of the following month to which the return relates) and pay their contributions on time (within 30 days of the date on the invoice) a heavily subsidised rate is charged to the employer.
Initially the subsidised contribution rate was 0.7%
From July 2006 the subsidised contribution rate has been 0.3%
From the April 2009 return the subsidised rate is 0.6%
From the October 2009 return the subsidised rate will be 2%
To calculate the contribution required simply multiply the ordinary weekly gross wage by the relevant contribution rate.
Upon registering as an employer with the Trustee any arrears of contributions are calculated at the full rate.
The Trustee has also approved that when contributions total less than $50.00 per month an application can be made to the Trustee to submit returns and pay the contributions on a quarterly basis.