Frequently asked questions for Working Directors about portable long service leave.
Apply to register as a Working Director through your Worker Portal. If the company is not registered, you will also need to fill in an employer registration application form.
If you pay all invoices issued, you will be credited with 12 Months of service per financial year.
You will accrue 1.3 weeks of leave for each 12 Months of service accrued.
You can log into your Worker Portal any time to check your service and leave balances.
We cannot give you advice on the deductibility or otherwise of the contributions and encourage you to seek independent tax advice. Generally speaking, as the contributions are paid on behalf of a Working Director (who is an employee), a tax deduction may be applicable.
Claims are made online through your Worker Portal.
Payment for the leave accrued as an employee will be paid at your average weekly rate of pay for the last 3 years you were registered as a worker.
Payment for the leave accrued as a Working Director are calculated from the contributions paid into the scheme, plus the accrued interest. Please note the interest component is only payable if you have accrued more than 84 Months of service.
Yes, tax will be withheld from both leave accrued as an employee and as a Working Director. If you are paid interest, tax will not be withheld, however the interest amount is taxable income and will appear on your PAYG summary for inclusion in your tax return.
We hope you can take a break to relax and recharge, but you can also continue to work during your period of leave. Alternatively, you may choose to claim a cash-out payment.
You can stop recording service with this scheme for up to 2 years (if you have less than 60 Months of service) or up to 3 years (if you have more than 60 Months but less than 84 Months of service). If you do not record service within this timeframe, your Months of service will be cancelled. You may apply for a refund of the Working Director contributions paid into the scheme, but you will not receive payment for the leave accrued as an employee.
If they are performing community services work you will need to register in the scheme as an employer. Please complete the Employer Registration application form online.
Yes, each year you will be able to log in to view a service statement that shows the Months of service accrued and your current leave entitlement, as well as a statement showing payments made into the Working Director scheme.