Portable long service leave is coming to the Community Services Industry

Effective 1 July 2025, the NSW State Government will implement a landmark reform with the introduction of a portable long service scheme for the Community Services sector. This initiative represents a critical advancement in recognising the transient nature of this industry

By aligning with similar schemes already established in other states, this reform underscores the importance of consistent support for those who play a pivotal role in strengthening communities.

Here, our experts detail the framework of the scheme, its eligibility criteria, and the broader implications for the industry.

How does long service leave work in NSW?

In New South Wales, employees accrue long service leave under the Long Service Leave Act 1955 (NSW) (Act), or in some industries, such as the building and construction industry, under portable long service leave schemes. In both cases, employees can take long service leave after ten years’ service with a single employer or a specific industry.

The NSW Community Services Industry Portable Long Service Leave Scheme (Scheme) not only reduces the eligibility period to access long service leave from ten years to seven but also ensures portability, providing employees with the flexibility to retain their entitlements across the sector.

Under the Act, full-time, part-time and casual workers in NSW are entitled to two months paid long service leave on completion of ten years continuous service with the same employer and one month of paid leave for each additional five years of continuous service.

Employees working in the building and construction, or contract cleaning services sectors, also receive two months of paid long service leave if they remain working in the industry for a decade. The portable long service leave schemes recognise the transient nature of these industries, which often sees employees working for multiple employers in similar roles. Employers in industries with portable schemes in NSW are generally required to register with long service leave regulators and pay a levy, which funds the schemes.

What are the details of this new portable scheme?

The Scheme will apply to workers in 31 different types of community services, but notably doesn’t apply to those in aged care or early childhood education services. It’s also open to self-employed contractors who opt in.

The Scheme is different to other portable long service leave schemes. Under the Community Services Sector (Portable Long Service Leave) Act 2024 (NSW), eligible workers:

• with seven years’ continuous service will be able to access six weeks of long service leave.
• who register within the first six months of the scheme will receive an additional year for their service credits.
• in some cases, may be eligible to apply for a payout (in recognition of their continuous service) if they exit the community services industry before reaching seven years of continuous service.

Importantly, the Scheme doesn’t interfere with long service leave provisions in the Act insofar as, if an employee remains employed with the same employer for ten years, they are also eligible to take long service leave in accordance with the Act.

Registration and levies

Starting 1 July 2025, all employers with at least one worker in the Community Services Industry must register with the Long Service Corporation (LSC) and begin tracking employee service hours in preparation for worker registrations, which will officially open in April 2026. The part of the legislation that enables worker registration becomes active at that time.

To assist with compliance, the LSC will provide a standard template from 1 July 2025 to help employers accurately record service hours for eligible staff.

Employers won’t need to submit service returns or pay the levy until April 2026. At that point, they’ll lodge returns and payments covering the first three quarters (nine months) of the scheme.

This phased approach is designed to give employers sufficient time to organise their records and plan financially for the upcoming levy contributions.

Additionally, workers included in the first two service returns (covering the period from 1 July to 31 December 2025) will be granted a one-time Foundation Worker bonus, adding 365 days of service credit to their record.

Commonwealth, State or Local Government authorities aren’t considered employers for the purposes of the Scheme.

Employers in the community services sector should promptly consider whether they’ll be required to register with the Scheme, and if they are, ensure swift action to avoid any penalties.

If any of this information has raised questions about long service leave and the upcoming changes for your business, or you’ve got another workplace matter you need assistance with, please reach out to our Citation Legal team for a confidential chat here.

About our author

Zaynab Aly is a Solicitor at Citation Legal. She has a particular interest in the retail industry and regularly provides advice on workplace matters to find solutions for clients.

Brittany Byrne is a Partner and Solicitor at Citation Legal and is based in our Brisbane office. Brittany is a leading expert in providing workplace business solutions to employers in an array of industries. Using her common-sense approach to disputes and litigious matters, she has allowed her clients to achieve commercial outcomes while protecting their reputations in the marketplace.