INFORMATION FOR EMPLOYERS
Casual Workers  

'Ordinary Pay ' for contributions in relation to workers employed on a casual basis  means his base hourly rate including any allowance payable by the Employer in respect of tools and equipment required by the employee in the work but does not include:

(a) payment for overtime;

(b) disability allowance being any allowance payable to an Employee as a consequence of his working in specified circumstances, being circumstances that involve, or are likely to involve, special danger, hardship, or inconvenience to the Employee, except where it is reasonably to be expected that persons engaged in the type of employment in which the Employee is ordinarily engaged would be entitled to that allowance for the whole, or greater portion, of the time in which they are so engaged;

(c) if the Employee is expected to work away from the Employee's usual place of residence, the value of, or any payment in respect of, board and lodging;

(d) the value of, or any payment in respect of meals or refreshments;

(e) payment in respect of travel to or from, or in the course of Work;

(f) payment payable in respect of the use of a vehicle;

(g) payment payable by way of bonus;

(h) the percentage calculation for casual loading.  

IMPORTANT UPDATE
Employer Contribution Rates  

At its May meeting, the TasBuild Board reluctantly agreed to increase the “subsidised rate” of contributions for the State’s Construction Industry Long Service Scheme to 2 per cent of ordinary time weekly wages, effective from the October 2009 Return. The “Full Rate” remains unchanged at 2.5 per cent of ordinary time weekly wages.

The decision was taken following advice received from TasBuild’s actuary and auditor given the widely-publicised global financial crisis that has significantly impacted on the financial sector and business in general.

While I appreciate that you were previously advised that the “subsidised rate” would increase to one per cent from October 2009, since that advice the financial crisis has deepened significantly, a development that no one could have predicted. 

The TasBuild Board was therefore left with little choice but to increase the rate further to ensure the scheme is able to meet current and future employee entitlements.

It is worth noting that while the subsidised contribution rate will increase to two per cent, the cost to TasBuild to fund long service leave is actually the equivalent of 2.5 per cent of weekly wages, and follows more than 10 years of heavily reduced employer contributions at various times of 0.7 per cent, 0.3 per cent and 0.6 per cent.  It also represents the most cost-effective solution for employers.

The Board is mindful of the costs to employers and undertakes to ensure that contribution rates are held at the lowest level possible to meet the Fund’s obligations. The Board will monitor the situation and adjust the “subsidised rate” taking into account any changes to the financial market.

In closing, the Board has asked me to convey that while it was a difficult decision, it was made in the best interests of contributors and beneficiaries for the long-term benefit of the industry.  

Chris Atkins
CHIEF EXECUTIVE OFFICER  

MEDIA RELEASE
TasBuild Appoints New CEO 

Mr Christopher Atkins, the past Executive Director of Master Builders’ Tasmania has been appointed as the CEO of TasBuild Limited. TasBuild is a trustee company that administers a unique fund that preserves the long service leave entitlements of construction industry workers.

Mr Atkins said; “I am excited to be appointed as the CEO of such a unique organization. Having been the Executive Director of Master Builders for the past nine years my new appointment will provide many new and different challenges and I am looking forward to the role.”

Long service in the construction industry, unlike other industry sectors is based on employment in the industry, not just to a single employer. Employers make regular contributions into the Fund and when an employee wishes to take their entitlement they make application to TasBuild who pay the employee. A unique concept that other industry sectors, their employers and their employees could benefit from.

TasBuild, as at 30 June 2008 had over $56 million in investments to meet the long service liabilities of over 15,400 construction industry workers in Tasmania.

“In the short term my focus will be to develop an understanding of the organisation’s culture, managing the investment portfolio and the significant impact the global financial crisis has had our returns. In the longer term I hope to continue the growth and industry support of the Fund and also explore the opportunities to expand this unique scheme into other industry sectors where employment is of a more itinerant nature. Employees and employers in these sectors are generally missing out on the significant benefits long service provides.” added Mr Atkins. 

Mr Atkins is available for further comment on:            Phone:           03 6233 5158
Mobile:           0458 891 839

IMPORTANT UPDATE
Contribution Rate Increases - 2009

The Board of TasBuild has reluctantly approved an increase in the employer contribution rates from the April 2009 and the October 2009 Returns.

These increases in rates will ensure the fund remains solvent at all times and that it's members entitlements are protected. A significant increase in employer and employee registrations has seen the Fund's accrued liability estimated to reach record levels in June 2009. Australia is currently experiencing extremely volatile conditions. The current global financial crisis has created uncertain times. The Board is charged with administering the Fund and it is crucial that they make decisions in the best interests of the contributors and beneficiaries. This necessitates evaluating and managing risk and making difficult decisions when such situations arise. The Board is confident it can continue to offer a heavily subsidised rate to employers for the foreseeable future and remain committed in achieving this important goal.

The cost to TasBuild to fund long service is 2.5% of a workers wage. The heavily subsidised rate of 0.3% currently on offer has been available to employers since July 2006. This rate was lowered from 0.7% at that time.

Tasmania will continue to have the lowest contribution rate of the other states and territories whose rates are as follows:

South Australia - 2.5%
Victoria - 2%
Western Australia - 1%
Australian Capital Territory - 1%

NB: Rates in the Northern Territory, Queensland and New South Wales are levied on construction projects. 

EFFECTIVE FROM THE APRIL 2009 RETURN

Employers in the industry will be offered, when returns are submitted on time and tax invoices paid on time, a subsidised rate of 0.6%

EFFECTIVE FROM THE OCTOBER 2009 RETURN

Employers in the industry will be offered, when returns are submitted on time and tax invoices paid on time, a subsidised rate of 1%

Correspondence clearly indicates due date, if these dates are not met, returns and invoices are recalculated to the full rate of long service leave automatically. The Full Rate of Long Service Leave is 2.5%

Are Your Workers Taking LSL at Christmas?

Due to the implementation of a new computer system our offices will be closing over the Christmas period. Exact dates will be advised to you.

Please advise your workers to submit their long service applications to this office as early as possible to ensure processing can occur prior to office shutdown.

Do You Pay Your Invoices Via Direct Debit?

The process of TasBuild debiting your account via direct debit will no longer be available from 1 January 2009. From that time onwards you will have to make other alternative arrangements to pay your TasBuild accounts.

The following payment methods are available to you:

Electronic Funds Transfer
Cheque
Cash (please not by post)
BPay

Should you require further information please contact us.

IMPORTANT NOTICE
Required Information on Return Forms

TasBuild has recently undertaken an audit of the system. Employers are required as per the Rules of the Fund to provide the period pay amount paid to the worker during the return period as well as the number of days the worker worked in the return period.

There are a number of employers who are not completing the return forms correctly and this required information is missing.

Effective from June 2008 Return please be aware that returns that have not had the required information completed will be returned to the employer for correction and resubmitting.

We will be conducting an audit of all previous returns which appear to have not been completed correctly and we will be requesting that employers validate information previously supplied if anomalies arise.

It is also a requirement that data be supplied on TasBuild return forms and not by way of spreadsheet or an internal report. This is as much for legal purposes as it is for processing the information.

Also there are a small number of employers who calculate their own contribution amounts and advise that amount on their return forms. This is done by multiplying the period pay amount by the contribution rate.

Effective from June 2008 Return this method of completing returns is no longer available. 

Employers are required as per the Rules of the Fund to provide the period pay amount paid to the worker during the return period as well as the number of days the worker worked in the return period. Please be aware that returns that have not had the required information competed will be returned to the employer for correction and resubmitting

Self Employed Contribution Rate & Interest Rate                    2008-2009

In June 2008 the Board set both the interest rate and contribution rate that will be applied to the self employed worker for the next financial year as follows:

The interest rate for the 2008-2009 financial year will be 0% due to the negative returns experienced in the market.

The contribution rate (the rate at which a self employed person can contribute into the scheme) remains at $156.00 or $182.00 per quarter for the 2008-2009 financial year (these rates are based on a weekly wage of $720.00 and $840.00 per week.) 

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