Portable Long Service Leave Scheme for NSW Community Service Sector
What It Means for Employers and Workers
TL:DR Article Summary
The Portable Long Service Leave Scheme for the NSW community service sector, effective from 1st of July 2025, allows workers to retain their long service leave entitlements when changing jobs within the sector.
This scheme benefits employees in high-mobility fields like disability support, aged care, and non-profit work by allowing them to accrue long service leave after seven years of continuous sector employment, regardless of the number of employers.
Workers earn 6.1 weeks of paid leave after this period. Employers must register, contribute to a central fund, and regularly report employee service periods. This initiative aims to boost job security, improve workforce retention, and maintain employee benefits despite job changes. It requires adjustments in payroll, compliance, and business reporting processes.
Early preparation is advised for a smooth transition before July 2025, and 3Kinds offers support with system adjustments and compliance management.
Empowering Community Workers in NSW
In a landmark change, the Portable Long Service Leave Scheme for community service workers in New South Wales (NSW) was passed by Parliament on 20 June 2024 and will take effect from 1st July 2025. This initiative will transform how long service leave is managed in the sector, especially for workers who frequently move between employers.
How the Scheme Works
The Portable Long Service Leave Scheme allows workers to retain and transfer their long service leave entitlements as they change jobs within the same sector. This is a significant benefit for employees in industries with high mobility, including those working with vulnerable groups like individuals with disabilities, children, families, and the elderly.
Previously, workers had to remain with a single employer for an extended period to qualify for long service leave. The new scheme enables workers to accrue long service leave after seven years of continuous employment in the sector, regardless of how many different employers they’ve had. Workers will be entitled to 6.1 weeks of paid leave after this time.
Key Aspects of the Scheme
Eligibility
Workers in the community service sector who have worked continuously for seven years within the sector can accumulate their long service leave entitlements. This includes employees in the non-profit, disability support, domestic violence, homelessness, and aged care sectors.
Portability
One of the most beneficial elements is the portability of entitlements. Workers can carry over their long service leave from one organisation to another, ensuring continuity and reducing the likelihood of losing entitlements when switching jobs.
Central Management
A central authority will oversee the scheme. Employers must contribute to a fund this authority manages, ensuring long service leave accruals are correctly maintained. This authority will track employee service periods, ensuring that the appropriate long service leave entitlements are calculated.
Employer Responsibilities
Employers in the community service sector will have specific obligations under this scheme:
- Registration with the scheme is mandatory for all employers in the sector.
- Employers must contribute a levy to fund employee entitlements.
- Regular reporting of employee service periods will be required to maintain accurate records and ensure that workers’ entitlements are current.
Impact on Workforce and Employers
For workers, this scheme brings greater job security and rewards long-term service within the community sector, even when career changes are frequent. For employers, it emphasises the need to effectively manage payroll, compliance, and reporting responsibilities. Employers must adjust their systems and processes to accommodate this new requirement, ensuring they meet the scheme’s obligations.
A Step Toward Stability
This scheme is expected to provide greater stability in an industry where employee turnover is high and long service leave entitlements are often underutilised. By preserving benefits across different employers, NSW is supporting workforce retention and the well-being of workers who dedicate their careers to community service.
For businesses in the sector, it’s essential to prepare for the administrative demands of this new law. Registering with the scheme, keeping accurate employee records, and budgeting for the associated levies will ensure compliance and a smooth transition into the new system.
We recommend early preparation for those operating in the community services sector to meet these new requirements before July 2025.
At 3Kinds Accounting, we can assist with payroll system adjustments, compliance reporting, and managing the financial impact of the Portable Long Service Leave Scheme.
Let’s work together to ensure a seamless transition while supporting the valuable contributions of your employees.
Feel free to reach out to 3Kinds for guidance on navigating these changes and the required set up changes that need to be made before 1st July 2025.
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.