INDUSTRIAL RELATIONS
Make certain you’re meeting your CoINVEST obligations T
he Master Builders Victoria industrial relations team receives many enquiries from members who want to understand their legal obligations. Members will often seek our advice in relation to minimum wages, overtime rates, annual leave and other employee entitlements. When advising our members, we find that one particular obligation isn’t always well understood, and sometimes, it is overlooked completely. Here are some of our most frequently asked questions on the topic of CoINVEST. The hardship precipitated by the COVID-19 pandemic underscores the importance of resources like CoINVEST. Particularly in times like these, when the people behind the building and construction industry need support in ways they perhaps have never imagined, ensuring your compliance with a long service leave fund requirement is essential.
What is CoINVEST? CoINVEST is the construction industry long service leave fund in Victoria and is governed by the Construction Industry Long Service Leave Act 1997. The scheme was established in 1976 to ensure workers in the construction industry would have access to long service leave, even if they didn’t remain with one employer for seven years. CoINVEST operates as a fund, where employers pay a quarterly contribution fee proportionate to the size of their workforce’s total wages. After seven years of working in the construction industry, workers can claim their long service leave from CoINVEST.
Who is covered by CoINVEST? Broadly speaking, CoINVEST covers work in the principal and allied construction industry – this encompasses building, electrical, and metal trades in commercial industrial and domestic settings throughout Victoria. The scheme also includes renovation, maintenance and installation work, as well as some service, maintenance and repair work. In the construction industry, most trades, labourers,
32 | Master Builders Victoria
apprentices and forepersons are covered by the scheme. The scheme covers employees, but also extends to working directors and some independent contractors.
How does it work? Every three months, employers must complete a Workers’ Days and Wages form. Employers record how many days their employees worked in the quarter and also how much the employee was paid over the same period. CoINVEST will then issue an invoice to be paid, currently based on 2.7 per cent of total gross wages reported on the form. Once workers have completed seven years of service in the construction industry (even with different employers) they can make a claim for long service leave. CoINVEST will pay the worker 9.1 weeks’ pay. For every additional year after the first seven, workers receive an additional 1.3 weeks leave.
I only do domestic work. Do I still have to pay? CoINVEST is a compulsory requirement for all kinds of building work including new builds, renovations, installations, maintenance and repair work. The scheme applies to both commercial and domestic businesses.
I don’t have an EBA. Does CoINVEST still apply? CoINVEST is a statutory obligation under the Construction Industry Long Service Leave Act 1997 (Vic). It applies to all businesses who engaged workers in the construction industry, regardless of whether or not they have an enterprise agreement.
Do I have to pay for my apprentice? Apprentices are also covered by the CoINVEST scheme. Although you do not have to pay contributions for apprentices, you must ensure they are registered with
The hardship precipitated by the COVID-19 pandemic underscores the importance of resources like CoINVEST. the scheme and that their working days and school days are recorded.
I don’t pay CoINVEST because I only use subbies. You don’t have to pay CoINVEST for genuine subcontractors. Genuine subcontractors can make their own contributions if they wish, but this is optional. However, you will still need to make contributions for a subcontractor if they are deemed to be your employee for the purposes of CoINVEST. Some indications of a deemed employee are that they only work for your business, they are paid based on hours worked rather than per job and they don’t provide their own materials. If CoINVEST determine that the subbie is a deemed employee, you will be required to record their service with CoINVEST as an employee, even if they work under an ABN.
What about casual employees? If you have casual employees that perform more than five days of covered work in any month, you are legally required to record this service with CoINVEST.
I’m the director of my business. Do I need to pay CoINVEST for myself? If you are operating under a company ABN and perform building and construction work, you will be classed as a working director under CoINVEST. This means that you are treated as an employee of your business for the purposes of CoINVEST. Working directors must pay contributions for themselves and can be penalised for failing to do so. This can also apply to some Trustee directors too.
Volume 75 Issue 03
