Why It Matters
For many employers in the community services industry, this new scheme introduces a significant administrative and financial shift. Unlike traditional long service leave entitlements, the Portable Long Service Leave (PLSL) scheme provides employees with long service leave benefits based on their time in the industry, not just time with a single employer. That means organisations will need new systems and processes in place to report worker data and pay levies.
What the Scheme Involves
Here’s what employers and workers need to know:
- Start Date: The scheme starts on 1 July 2025.
Who It Applies To:
- Employers: Those in the NSW community services sector with one or more employees.
- Employees: Workers providing eligible community services.
- Self-employed contractors can also opt-in.
Entitlements for Workers:
- Accrue 6 weeks’ long service leave after 7 years of eligible service in the industry.
- Service does not have to be continuous or with one employer.
- Workers appearing on the first two service returns for the Sep 25 and Dec 25 quarters will receive a 365 days bonus foundation service credit.
Employer Obligations:
- Register with the Long Service Corporation by 31 July 2025 with Services NSW
- Record service for all eligible employees.
- Submit quarterly service returns from quarter ending 30 September 2025 by 14 days after quarter. A transitional concession applies to the first 3 quarters ended 30 September 25, 31 December 25 and 31 March 26 being able to be lodged by 14th April 26
- Pay quarterly levies of 1.7% of gross ordinary wages under the rules.
Worker Registration and Rights
- Employers are responsible for registering eligible workers.
- Workers should speak with their employer to ensure inclusion from scheme commencement.
- Self-employed contractors must lodge their own returns and pay their levy.
- Workers can view their service records via a portal from April 2026.
- Workers may appeal registration or service reporting errors via the Long Service Corporation.
What Work is Covered?
There are 31 types of community service work covered, including:
- Disability support and services
- Domestic and family violence services
- Foster care, homelessness, migrant and multicultural support
- Social housing, youth justice, Aboriginal and Torres Strait Islander community services
See the full list here: https://www.longservice.nsw.gov.au/community-services/the-scheme/work-covered-by-the-scheme
What Employers Should Do
Before the Scheme Commences
- Confirm if your organisation falls under the community services definition
- Register with the Long Service Corporation by 31 July 2025
- Set up systems to record gross ordinary wages and employee details
- Educate payroll and HR staff about levy calculations and reporting obligations
- Engage Beam Bookkeeping to help implement new payroll workflows and templates
After the Scheme Starts
- Lodge service returns quarterly
- Maintain accurate wage and employee records
- Budget for quarterly levy payments (based on gross ordinary wages)
- Use the record-keeping template
- Partner with Beam Bookkeeping for ongoing compliance and reporting support
FAQs
Who is covered by the Portable Long Service Leave Scheme?
Workers in the NSW community services industry, including full-time, part-time, and casual employees. Contractors may opt-in.
What is ‘gross ordinary wages’?
The gross amount of wages before tax, salary sacrifice, and superannuation, including allowances like on-call, first aid, and casual loading.
How do I calculate the levy?
The levy of 1.7% is based on the gross ordinary wages of your eligible employees for each quarter.
What records do I need to keep?
You must keep accurate wage and service records for each eligible worker for 7 years after their employment ends.
Can I appeal a decision made by the Long Service Corporation?
Yes. From 1 July 2025, appeals can be lodged with the independent Long Service Corporation Committee.
Let Beam Help You Stay Ahead of Compliance Changes
This new scheme represents a significant change for many community service employers. Beam Bookkeeping can help your organisation set up systems, ensure payroll alignment, and meet your record-keeping obligations with confidence.
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