Update: NSW Portable long service leave transition arrangements

We’ve previously reported on the introduction of portable long service leave (LSL) for community services workers in NSW. This will commence from 1 July 2025.

For a quick recap on what’s happening in this space see our previous article here.

How will Purpose support clients?

We’ve now worked through the detailed accounting treatment and new procedures that will be used to manage LSL entitlement, upon introduction of the scheme. Below we provide further details on how we’ll support affected clients through the change – please read on if you think your organisation may be impacted.

Purpose will offer support through a dedicated ‘Portable LSL project’ service, which will guide clients through each stage of the process. During April, we’ll be in contact with all clients potentially affected by the changes, and you’ll have the option to take up this service after that point.

Our service will include the following elements:

1. Help to assess whether your organisation qualifies for the scheme. We’ll work with you to confirm whether your organisation qualifies for registration.

2. Guidance through the registration process. Purpose expects that qualifying clients will register directly for the scheme (rather than Purpose applying on your behalf), however you’ll have our help throughout this process. We’re still awaiting further announcements from the NSW Government on when registrations will open.

3. Support to implement transitional arrangements. For affected clients, this includes:

• Chart of accounts setup (additional accounts to record portable LSL levy expense and an asset for expected reimbursements from the Long Service Corporation)
• Preparation of the LSL schedule, for LSL from 1 July 2025, to include the calculations for the reimbursement asset

4. Support to setup systems and processes to ensure ongoing compliance. This includes:

• Setup of the quarterly portable LSL return calculation spreadsheet, to ensure earnings are correctly reported to the Long Service Corporation
• Setup of the portable LSL levy calculation spreadsheet, to allow the accrued portable LSL levy to be calculated and recorded on a monthly basis
• Best practice payroll setup, and implementing changes to support portable LSL accounting