We’ve previously reported on the introduction of portable long service leave (LSL) for community services workers in NSW. We’re now able to share some further details on this important change – please read on if you think your organisation may be impacted.

What’s happening? A quick recap…

• The new portable LSL scheme is due to come into effect on 1 July 2025
   
• Community sector workers in NSW will be able to access paid LSL based on how long they have been employed in the sector, as opposed to how long they have worked for a single employer.
   
• The scheme covers full-time, part-time, fixed-term and casual workers who work in eligible community services. Contractors who provide community services work can also opt in to the scheme. Eligibility is determined through:
  a) Role: a worker is eligible if they deliver a prescribed community service
  b) Organisation: all roles at an organisation are covered by the scheme, including administrative roles. The organisation must have the predominant purpose of delivering a prescribed community service.
   
• The scheme generally will not include standalone aged care, early childhood education and care, or health care services. However, there will be limited coverage – e.g. if an organisation’s predominant purpose is to deliver a prescribed community service, and that organisation also provides an early childhood education service, those workers in the early childhood education service will be covered by the scheme.
   
• Affected employees will receive 6.1 weeks paid leave, after 7 years of employment in the sector, regardless of how many times they change employers. It will also be available to casual or part-time employees, who can access the scheme after the equivalent time (calculated on a pro-rata basis).
   
• Employers will pay a levy to the Long Service Corporation (LSC) to cover the cost (rather than provide for long service leave via a leave provision, as is the current practice).

How will Purpose support clients?

We are working through the detailed accounting treatment and new procedures that will be used to manage LSL entitlement, upon introduction of the scheme.

Purpose will have comprehensive processes available to guide affected clients through each stage of the process. We’ll be offering support across the following key aspects:

• Help to assess whether your organisation qualifies for the scheme;
   
• Guidance through the submission process;
   
• Support to implement transitional arrangements; and
   
• Support to setup systems and processes to ensure ongoing compliance. This includes best practice payroll setup, and implementing changes to the leave provision.

What will affected orgs need to do?

Organisations that qualify for the scheme will need to do the following – don’t worry, Purpose can work with you to ensure you understand these steps and are set up to manage them:

• Make a periodic return (quarterly) to the LSC for each registered employee, including the days employed and wages
   
• Pay the levy on time
   
• Keep and retain records, including information about an eligible employee’s days of employment and wage, at least 7 years after their employment ends

Organisations will need to register for the scheme. We are awaiting further announcements from the NSW Government on when registrations open.