Portable long service leave for community services sector – extension into South Australia and New South Wales

Short on time? Read the key takeaways.

From 1 July 2025, a new portable long service leave (PLSL) scheme will come into effect for New South Wales and South Australian workers. 

In South Australia it impacts workers who are employed under the Social, Community, Home Care and Disability Services Industry award 2010 or the Aboriginal Legal Rights Movement Award 2016 and are working in the community services sector, as defined in Schedule 2 of the Portable Long Service Leave Act 2024.

The scheme will come into effect for employers and workers in New South Wales who provide community service work as outlined in the Community Service Sector (Portable Long Service Leave) Act 2024. Both schemes exclude workers employed by Commonwealth, State or Local Government authorities or agencies. 

What is portable long service leave?

Traditional long service leave (LSL) arises when an individual employee works for a single employer for a period of ten years, thereby becoming entitled to paid LSL of thirteen weeks in South Australia, and two months in New South Wales. A pro rata entitlement applies after seven years’ service in South Australia and after five years’ service in New South Wales.

The concept of PLSL is that an industry or sector replaces the single employer, meaning an individual who works within a designated industry or sector for ten years is entitled to LSL, and pro rata service rules apply. Employers and registered self-employed contractors will pay a levy into an independently managed fund, based on the period of time that the individual is employed by their entity in South Australia and based on a percentage of wages or remuneration in New South Wales. 

How will it work? 

In South Australia, employer registration will be available through the online portal starting 1 July 2025. Businesses employing eligible workers in South Australia’s community services sector must complete the online Employer Registration Application form within 28 days of the scheme’s commencement.

Employers will report to the PLSL Community Board quarterly to confirm an employee’s service to the sector in that quarter. The first quarterly Employer Return will be available from the end of September 2025 and must be lodged by 21 October 2025. Employers are required to pay any applicable levies for the quarter by 21 October 2025. 

In New South Wales, employers are required by law to register persons employed on wages as a worker with the Long Service Corporation (LSC) and record their recognised service. Eligible employers must lodge a return with the LSC, covering a three-month period, including: 

• Eligible workers contact details 
• The period they were employed during those three months 
• When they started or finished employment with the employer 
• The total ordinary wages paid to them for work in that period. 

Service credits are recorded for the period eligible workers are employed by an employer. Workers do not have to work in the community services industry all the time to qualify for long service leave, they can have a break from the industry for up to four years without effecting their entitlements.

Self-employed contractors who choose to register as workers in the scheme must record their own services and lodge quarterly returns. 

New South Wales workers registered in the scheme within the first six months of its commencement will receive a bonus year to add to their service credits, being recognised as foundation workers under the scheme. 

Impacts for organisations 

BDO considers the main outcomes for organisations as follows: 

• Organisations need to determine whether they are operating in the community services sector and, therefore, whether registration and payment of the levy as an employer is required 
• Organisations must ensure all employees who are subject to the scheme are included – both direct front-line and those supporting the service delivery 
• Organisations must pay the levy on the correct amount of wages 
• Organisations must pay the levy on service by all employees from day one of their employment. 

It's vital that employers who the scheme may impact understand its mechanics and their reporting obligations, to minimise the risk of penalties applying. 

Further information on accounting for PLSL in the community services sector can be found in a previous article. 

Contact our not-for-profit team for more information on understanding your business requirements around portable long service leave.