What Construction Businesses Need To Know About LeavePlus

If you’re asking “what is LeavePlus?”, this Victorian construction guide covers who must register, employer obligations, levy (2.7%), returns and LeavePlus contact. If you own a business in the construction industry, this one’s a must-read. To meet compliance standards, you need to be registered with LeavePlus (formerly CoInvest). Here’s what you need to know and do.

Before you get stuck in, head to the LeavePlus site to check if it covers you (cleaners, cabinet makers and gardeners are a few of many job titles/business categories that fall under it)/

What is LeavePlus?

It’s the portable long service leave scheme for Victorian workers in the construction industry. It ensures that eligible workers continue to accrue long service leave even when they change employers within the industry.

Who Needs to Register?

If you’re a construction business operating in Victoria, including builders, tradies, and subcontractors, and you have employees or apprentices performing eligible construction work, you are required to register with LeavePlus. This applies to:

• Pty Ltd businesses with employees
• Subcontractors using apprentices
• Labour hire businesses supplying construction workers.
• Self-employed contractors / working subcontractors must also register (though paying the levy for their own service is optional; they can elect to contribute)

Here’s the big heads-up: Recent 2025 Supreme Court rulings in Victoria have significantly expanded the definition of “construction work” and “construction industry.” Even businesses primarily in other sectors may now be caught if they employ trade or maintenance staff doing work on buildings or infrastructure. This includes maintenance, installations, electrical work, plumbing, property services, and structural work.

Don’t assume you’re exempt just because your business isn’t “construction” in the usual sense. If your staff carry out any of the above work, you may have LeavePlus obligations. The courts specifically rejected arguments that some work was “too minor” to include, so it’s worth getting advice if you’re unsure.

Your Obligations as an Employer

When you’re registered, you must:

1. Register your business with LeavePlus
2. Register your eligible workers
3. Submit quarterly returns
4. Pay the levy / long service leave charge (currently 2.7% of ordinary pay as at the date of publishing)
5. Keep accurate records and report correctly, especially important as LeavePlus has signalled increased audits and enforcement following the 2025 court decisions

Failing to register with LeavePlus can result in…

• Backdated levy payments: potentially going back years if you’ve been operating without registration
• Penalties and interest charges: LeavePlus is ramping up audits and enforcement
• Risk of employee disputes: over long service leave entitlements
• Legal and reputational risk: especially in light of the 2025 Supreme Court decisions, which have made it clear that “we didn’t know” or “our work is too minor” won’t cut it as defences

It’s also just the right thing to do for your team; they deserve to have their long service leave protected. At the core of maintaining a strong workforce is being an employer who is compliant and who cares about their team and entitlements.

Important note: Because of the expanded scope following recent court rulings, LeavePlus has indicated that education, audits, and penalties are all on the cards. Employers should review historic obligations carefully; unpaid contributions dating back years, with interest, are very much possible.

How Worker Entitlements Are Tracked & Claimed

Understanding how the scheme works for your employees helps you explain the value of it to your team. Here’s the rundown:

• Workers become eligible to claim long service leave after 7 years (1,820 days) of continuous service in the industry
• After 2002, workers accrue 1.3 weeks per year of service
• Workers can have a break of up to 4 years without losing continuity. If a break exceeds 4 years, earlier service may become inactive
• Entitlements don’t expire once earned, this is a lifetime benefit for eligible workers
• Claims are made via LeavePlus (or the applicable scheme in the state/territory of the worker’s most recent service)
• In some cases, there are employer reimbursement mechanisms where the employer pays the leave directly and is reimbursed by the scheme

Recent Changes & Legal Risk: What You Need to Know

This is critical, so we’re saying it loud: 2025 Supreme Court decisions in Victoria have changed the game.

Here’s what happened:

• The definition of who is “in” the LeavePlus scheme is now much broader than many employers thought
• Maintenance work, installations, infrastructure work, and other activities may now be covered, even if your primary business is not construction
• The courts specifically rejected arguments that some work was “too minor” to be included, meaning there’s no “de minimis” exception to hide behind
• LeavePlus has signalled increased audits and enforcement, meaning non-compliance will be actively pursued

What this means for you:

• If you employ staff who do any kind of building, trade, maintenance, or installation work, you need to review your LeavePlus obligations, now
• Historic liabilities may apply, meaning you could be liable for backdated contributions, plus interest and penalties
• “We didn’t know” is not a defence that’s going to fly anymore

Our advice? Don’t wait. Get a compliance review done and make sure you’re covered. We can help you assess your situation, register if needed, and handle any retrospective obligations without the stress.

How to Register for LeavePlus

1. Go to www.leaveplus.com.au
2. Click Register Now under the Employer section
3. Set up your account and add your workers
4. Reach out to our team if you need help with registration or returns.

If you own a business in a state other than Victoria, here’s your comparable long service leave scheme:

• NSW: Long Service www.longservice.nsw.gov.au
• QLD: Q Leave qleave.qld.gov.au
• WA: MyLeave myleave.wa.gov.au
• SA: Portable Long Service Leave Industryportableleave.sa.gov.au
• TAS: TasBuild tasbuild.com.au
• NT: NT Build ntbuild.com.au
• ACT: LeavePlus ACT (previously ACT Leave) actleave.act.gov.au

While you’re here, we thought it’d be helpful to summarise other key industry schemes that you need to be across as a Victorian business in the construction industry. 

Incolink

• Redundancy, income protection and well-being fund for commercial construction workers
• Primarily applies to unionised or EB agreement-covered sites
• Employers make regular contributions per employee (e.g. redundancy, IPT, and wellbeing)
• Benefits go to workers if they’re laid off or injured
• Note: Not required on private residential jobs unless covered by an EB agreement

Tip: Incolink often comes up when tendering for larger commercial jobs or working with union-managed sites.

Cbus Superannuation

• An industry super fund for building, construction and allied industries
• Not mandatory, but many EB agreements require super contributions to go to Cbus
• Many workers expect it as their default fund, especially on union-aligned sites

Building and Construction Industry Training Fund (CITF) (WA & other states)

• Some states (e.g. WA, QLD, TAS) have training levies payable on construction projects
• If your clients work across state borders, this is worth checking

EBAs & Site-Specific Agreements

• If your clients work on large commercial or government sites, they may be subject to:

1. Enterprise Bargaining Agreements (EBAs)
2. Site-specific pay rates and conditions
3. Requirements to contribute to Incolink, Cbus, and other site-specific funds.

Construction is an area of specialisation at Future. If you need a hand with LeavePlus registration, advice on the other key industry schemes, VCFO services or any of the other suite we offer, drop us a line.

Frequently Asked Questions

1. What is LeavePlus?

LeavePlus (previously known as CoInvest) is Victoria’s portable long service leave scheme for construction workers. It allows eligible employees to continue accruing long service leave entitlements, even if they change employers within the industry. Workers become eligible to claim after 7 years (1,820 days) of continuous service and accrue 1.3 weeks per year post-2002. Entitlements don’t expire once earned.

This ensures continuity and security for workers in a field where switching projects or employers is common. Importantly, recent 2025 Supreme Court rulings have broadened the scope of who’s covered, even businesses not traditionally in construction may now have obligations if they employ trade or maintenance staff.

At Future Advisory, we regularly work with tradies and builders to ensure they’re properly registered and aware of how LeavePlus affects their business operations.

2. Who needs to register with LeavePlus?

If you run a construction business in Victoria and employ workers or apprentices doing eligible construction work, you must register with LeavePlus. This includes Pty Ltd businesses with employees, subcontractors using apprentices, labour hire companies supplying workers to construction sites, and self-employed contractors (though the levy for their own service is optional).

Here’s the critical update: recent 2025 Supreme Court decisions have expanded the definition of “construction work.” Even if your primary business isn’t construction, you may be caught if your staff do maintenance, installations, electrical, plumbing, property services, or structural work. Don’t assume you’re exempt just because you’re not a builder.

Our construction business advisory services help you confirm whether your business falls under the scheme and what steps to take to stay compliant.

3. What services does LeavePlus offer?

LeavePlus handles several key functions for construction employers and workers in Victoria. These include employer and worker registration, quarterly return submissions, levy collection (2.7% of ordinary pay), and the administration of long service leave claims.

For businesses, these obligations can be a lot to manage, which is why our payroll support and compliance team helps streamline the entire process so you never miss a deadline or payment.

4. How does LeavePlus support workers in construction?

The scheme provides a safety net for workers by preserving long service leave entitlements across jobs. This is crucial in an industry known for its project-based employment. Workers become eligible after 7 years (1,820 days) of service and accrue 1.3 weeks per year. They can have a break of up to 4 years without losing continuity, and entitlements never expire.

With LeavePlus, a carpenter, electrician, or plumber who changes jobs regularly doesn’t lose the value of their time served. It’s a great benefit for your team, and being on top of it as an employer shows you care about your people. Our construction accounting experts can help ensure you’re meeting your obligations while looking after your crew.

5. What do people say in LeavePlus reviews?

Reviews of LeavePlus are generally positive, especially among businesses that understand their obligations and stay on top of quarterly reporting. Employers appreciate that it helps them support their staff while keeping the process structured.

Some note that working with an accountant or advisor makes it significantly easier to manage. That’s where we come in; our team provides hands-on support for LeavePlus compliance as part of your broader business systems.

6. How do I register for LeavePlus?

To register, visit www.leaveplus.com.au, go to the Employer section, and click “Register Now.” You’ll set up an account, add your eligible workers and subcontractors, and begin submitting quarterly returns and paying the 2.7% levy.

If it all sounds a bit too admin-heavy, or if you’re worried about historic liabilities following the 2025 court decisions, no worries. We’ll take care of it through our small business compliance services so you can stay focused on the job site.

7. Can Future Advisory help with LeavePlus registration?

Absolutely. Our VCFO and business advisory team regularly helps construction businesses with everything from registering for LeavePlus to setting up reporting systems and managing ongoing obligations.

We’ll guide you step-by-step, making sure your account is correctly configured and your eligible workers are covered. You’ll have peace of mind knowing you’re compliant and not at risk of penalties.

8. How does LeavePlus impact payroll setup?

LeavePlus requires that you calculate and pay a 2.7% levy on the ordinary pay of eligible workers. This needs to be reported and submitted quarterly. If your payroll system isn’t set up to handle this, things can fall through the cracks.

We offer payroll integration and compliance support to ensure the levy is correctly calculated in software like Xero or MYOB, and that your returns are filed on time every time.

9. What happens if I haven’t registered with LeavePlus yet?

If you haven’t registered and you should have, you could face penalties, backdated levy payments (potentially going back years), and interest charges. It’s also a potential source of disputes if employees find out their entitlements weren’t protected. With the 2025 Supreme Court rulings expanding the scheme’s reach, LeavePlus has signalled increased audits and enforcement, so getting compliant now is critical.

Don’t stress, our accountants for construction businesses can help assess your situation, manage retrospective registration, and put a compliance system in place moving forward.

10. Does LeavePlus affect businesses working across multiple states?

Yes, and this is where it gets tricky. While LeavePlus applies to Victoria, other states like QLD and WA have their own schemes (QLeave, MyLeave, etc.). If your business operates across borders, understanding which scheme applies to which project is essential. Cross-jurisdiction workers may have service recorded in multiple schemes, but each state scheme handles claims for that state.

Our multi-state construction compliance experts can guide you through the maze of obligations, making sure you’re not double-paying or missing entitlements entirely.

11. What did the 2025 Supreme Court decisions change about LeavePlus?

The 2025 Victorian Supreme Court rulings significantly broadened the definition of “construction work” and “construction industry” under the LeavePlus scheme. The courts rejected arguments that some work was “too minor” to be included, meaning businesses that previously thought they were exempt may now be caught.

This includes businesses primarily in other sectors, like maintenance companies, property services, installation businesses, and anyone employing trade or technical staff doing building-related work. LeavePlus has responded by signalling increased education, audits, and enforcement. If you’re unsure whether the changes affect you, it’s worth getting a compliance review done. Our team can assess your situation and help you get on the right side of the law without the stress.