What is the long service levy?
The NSW government charges a levy on all building and construction projects where the cost of work is $250,000 or greater. The levy is paid into a fund administered by the Long Service Corporation (LSC). This fund then pays long service to eligible building and construction workers.
Because of the project-based nature of the building and construction industry, it is often unusual for someone to work with the same employer for 10 years. The Portable Scheme was established by the Long Service Corporation to ensure building and construction workers have the opportunity to access similar entitlements.
The scheme rewards long service to the industry rather than long service to a particular employer and covers both employed and self-employed workers who perform building and construction work in NSW.
Cost of levy?
The levy is calculated at 0.25% of the cost of building and construction works of $250,000 and above (including GST)
You can use the levy calculator to check how much you need to pay.
Churches, Owner-builders and non-profit organisations may be eligible for levy exemption or discounts. The maximum discount is 50% and the minimum levy paid is $50.
Who has to pay the levy?
The levy is paid by the Applicant or Owner on the Service NSW Levy portal prior to the CC/CDC being issued.
Failure to pay the correct levy before construction starts may result in fines, penalties or prosecution.
The long service levy applies to works including but not limited to:
Major projects and infrastructure
Civil construction such as roads and bridges
Fuel, gas and water treatment systems
Telecommunications and electrical distribution infrastructure
You may be eligible for a full or partial refund of the levy if:
work did not commence and building approval lapsed or was cancelled
levy payment was duplicated or overpaid
you paid the levy in full but are entitled to a partial exemption as an owner-builder, church or a non-profit organisation (apply for a refund within 12 months of payment).
For more information please visit the NSW long service levy website.