A major reform that applies to both NFP and for-profit community service organisations in NSW means factoring in a new cost – portable long service leave payments.
From 1 July 2025, workers in NSW’s community services industry who work across different jobs and employers will be able to access portable long service leave (PLSL).
This change aligns NSW with other PLSL schemes already operating in ACT, Victoria and Queensland. It has been designed to recognise that sector work is often part-time, casual or carried out through short-term contracts.
What does a Community Services organisation need to do?
NSW Community Service organisations will need to keep tabs on the cost of PLSL payments when developing their FY26 budget, pricing services or drafting budgets for tenders and grants. At this stage there is no word of government contracts or grants increasing payments to cover this new cost for industry employers.
Talk to your accounts team about how to manage the impact of the new payments.
What is portable long service leave?
This new Community Services Industry (CSI) portable long service leave scheme, legislated under the Community Services Sector (Portable Long Service Leave) Act 2024, allows eligible employees to accumulate long service leave across different jobs and employers in the same industry.
The CSI scheme allows employees to earn 6.1 weeks of paid leave after 7 years of industry service, regardless of how many Community Services Industry employers they have worked for in that period.
Who’s eligible for the Portable Long Service Leave Scheme?
The scheme applies to:
- Full-time, part-time and casual employees
- Self-employed contractors (who can opt-in)
- Workers who provide community services or are employed by an organisation whose primary purpose is delivering community support.
Who’s not eligible for the Portable Long Service Leave Scheme?
Company directors, business partners, and employees working solely under government contracts.
Which community services are covered?
The Act specifies 31 different types of community services included in the scheme. These include accommodation support services, alcohol and other drug services, child safety and support services, community advocacy services (including education and other services provided by peak bodies), community development services, community care services, community legal services, community mental health support services, community recreation services, community transport services and more.
What Community Services Employers Need to Know
The scheme is mandatory for all eligible employers in NSW.
Key responsibilities include registering with the scheme, submitting quarterly service returns and paying a quarterly levy (expected to be 1.7% of gross ordinary wages).
It is important to note that the first levy payment deadline has been extended to 2026. Self-employed contractors who opt in will pay the levy themselves, and the levy contributions go into a central fund used to pay workers when they become eligible.
Resources and Support
Long Service Corporation (LSC) – Community Services Industry Scheme
Have Questions?
The NDA team can assist your organisation in determining whether it is covered under the scheme and in setting up internal processes and procedures to ensure compliance. Contact us today.
