The project-based nature of the building and construction industry means that periods of unemployment are common. As all employers know, workers are entitled to redundancy payments in accordance with the terms of their Enterprise Bargaining Agreement (EBA) or their Contract of Employment.

Incolink provides you with a tax deductible and FBT-free vehicle that lets you fund those entitlements by making monthly contributions, rather than as a lump sum on termination of employment. Monthly funding helps you manage your cash flow and budget worker expenses into your employment costs. If you have a payroll tax liability you will also benefit because redundancy contributions to Incolink are not classified as wages.

Importantly, employee entitlements remain secure in the event that you become insolvent because all contributions are held by the Trustee on behalf of your employees who are Incolink members.

Applying for membership

To apply for Incolink membership, you need to fill out this Application for Membership and a Deed of Adherence. Once these forms are completed and you supply all the relevant documentation, it takes approximately two working days for us to approve and process your application. You’ll receive a confirmation of approval and your new Incolink Employer Member Number via email once the registration process is complete. You’ll also receive log-in details that let you use our EmployerLink service to make payments online.

Two account types to give members more flexibility

Incolink offers members a choice of two different accounts – either a Severance Account or a Genuine Redundancy Account.

Severance Accounts are the default account type and most people choose this option. A severance account lets workers claim part of their funds as an initial benefit as soon as they become unemployed. If they’re still out of work four weeks later they can claim the balance of the account. Transactions on these accounts are taxed at the marginal rate. For more information on how the Severance Account benefits your workers, click here.

Genuine Redundancy Accounts (GRA) let workers claim the whole amount held in their account if they are made redundant. A GRA attracts no fees and is taxed at a nil or reduced rate, however workers can only make a claim if their position has genuinely been made redundant, or if they suffer a permanent disability or death (via their estate). Workers who become unemployed for any other reason cannot make a claim on this type of account. For more information on how the GRA benefits your workers, click here.


If you are a sub-contractor, a sole trader or in a partnership you may also need to make redundancy contributions to Incolink behalf of your employees. Please contact us for further information.