Construction industry employees' long service leave fund levy to be reduced

23/9/98

Labour Relations Minister Cheryl Edwardes said today the contribution levy payable by employees to the construction industry long service leave fund would be reduced from 0.25 per cent of ordinary pay to 0.1 per cent from January 1, 1999.

"This is a 60 per cent reduction in the levy and will save the industry about $1 million in a full year," Mrs Edwardes said.

"This has been made possible primarily as a result of the excellent investment returns achieved by the Construction Industry Long Service Leave Board, which administers the scheme."

The Minister said the board had achieved an average investment return of 17 per cent over the last three financial years, which compared with an average three-year return of about 12.6 per cent for managed balanced investment funds.

She said she was pleased the board had been able to achieve its aim to keep the cost of the scheme to employers as low as possible by maximising the rate of return on investments.

Media contact: Nicole Trigwell 9421 7777