Portable Long Service Leave | What You Need to Know
Article Summary
From 1 July 2025, a new Portable Long Service Leave (PLSL) scheme will apply to the community services sector in NSW. Unlike traditional leave tied to one employer, PLSL allows workers to accrue long service entitlements across multiple employers, provided they stay within the same industry.
This initiative benefits a mobile workforce, common in community services, where professionals often move between organisations. Under the scheme are full-time, part-time, and casual staff, administrative workers, and self-employed contractors (who can opt-in).
Eligible employees will receive 6.1 weeks of leave after 7 years of sector service, with further accrual ongoing. A foundation bonus of 365 days will be awarded to those who register by 31 December 2025. The scheme is funded by a 1.7% levy on ordinary remuneration, payable quarterly by employers or contractors.
Pre-July 2025 long service leave remains the responsibility of current employers, while the new scheme starts fresh. This means businesses must manage both internal and portable balances moving forward.
The NSW Long Service Corporation will oversee the system. Employers are encouraged to update payroll systems and inform staff of their new entitlements. 3 Kinds Accounting is ready to assist with the transition.
Portable Long Service Leave in NSW – July 2025 Update
From 1 July 2025, workers in the New South Wales community services sector will be covered by a new Portable Long Service Leave (PLSL) scheme — a significant step forward in recognising the dedication and mobility of this essential workforce.
What Is Portable Long Service Leave?
Unlike traditional long service leave, which is tied to continuous service with one employer, portable long service leave allows employees to accrue entitlements across multiple employers as long as they stay within the same industry.
This is particularly valuable for sectors like community services, where contract and project-based roles are common, and people often move between organisations while still serving the community in meaningful ways.
Who Is Covered?
The scheme applies to:
- Full-time, part-time, and casual employees
- Administrative staff within eligible organisations
- Self-employed contractors (opt-in option)
Your organisation will likely fall under the scheme if its primary purpose is to deliver community services, such as family support, aged care (non-residential), disability services, youth services, financial counselling, and more.
Key Features of the Scheme
Feature | Details |
Start Date | 1 July 2025 |
Entitlement | 6.1 weeks leave after 7 years (2,555 days) of sector service |
Ongoing Accrual | 0.8667 weeks per additional year |
Foundation Worker Bonus | +365 days service credit if registered by 31 December 2025 |
Levy for Employers | Funded via a levy paid to the Long Service Corporation |
Administered by | NSW Long Service Corporation |
What Should Employers Do Now?
- Stay informed: Visit longservice.nsw.gov.au for updates and registration details.
- Prepare payroll: Ensure systems can track service days and calculate the levy.
- Communicate with staff: Let your team know about their upcoming entitlements.
What Does It Mean for Employees?
This is a win for long-term contributors to the community services sector. If you’ve worked across multiple organisations over the years, you’ll finally get recognition for your total service and be rewarded with the leave you’ve earned.
What Happens to Existing Long Service Leave?
Any long service leave (LSL) entitlements that employees have accrued before 1 July 2025 remain the responsibility of their current employer. These entitlements are not transferred into the new portable scheme.
From July 1st 2025, portable long service leave starts fresh. While prior service is not generally counted toward portable LSL, workers who register before 31 December 2025 will receive a one-time foundation bonus of 365 days of credited service.
Employers will need to manage two sets of LSL: internal balances for pre-July 2025 service and external balances under the portable scheme administered by the NSW Long Service Corporation.
Employees should be aware that they have two forms of entitlement: one linked to current employment and one portable going forward.
Levy Rate for Employers
The levy rate for the Portable Long Service Leave scheme has been confirmed at 1.7% of each eligible worker’s ordinary remuneration. This rate applies to both employers and self-employed contractors who opt into the scheme.
The levy is payable quarterly to the NSW Long Service Corporation and is used to fund future long service leave payments.
Portable Long Service Leave
This scheme acknowledges the reality of the modern workforce and the value of those who dedicate their careers to supporting others. Whether you’re an organisation planning for compliance or an individual wanting to make your service count, now is the time to prepare.
At 3Kinds Accounting, we’re here to help you understand how these changes impact your team, payroll, and compliance obligations. Contact Us for a Free Initial Consultation
Louise Kibble
Let’s Talk
Before founding 3Kinds in late 2024, Louise served as the Senior Audit Manager at HLB Mann Judd Wollongong for seventeen years, but it felt a lot longer. Since joining HLB in 2007, she developed and managed a diverse client portfolio, including publicly listed entities, manufacturing, education and local not-for-profit organisations focused on employment services for individuals with disabilities. Her experience also includes working with various smaller private, charitable, and not-for-profit entities, as well as SME’s and Sole Traders.
“I find it incredibly rewarding to help businesses get their financials in order, with a strong focus on audit and compliance. The consulting services we offer at 3 Kinds will allow your business to view risk clearly, act swiftly, and make informed business decisions.”
So whether you need support for a one-off engagement or continuous ongoing support with a fixed monthly arrangement, our virtual services deliver tremendous value. Why not book a free initial consultation or call me to get started? Our expert solutions are designed to drive your business’s growth and success, and we are here to provide the strategic leadership, clarity in the numbers and the financial oversight your business needs to thrive.