Changes to Portable Long Service Leave in SA and the ACT

Portable long service leave schemes have recently changed in South Australia and the Australian Capital Territory. These updates bring new requirements that may impact how you manage entitlements, contributions and compliance across eligible industries.

Whether you already participate in a portable long service leave scheme or are newly affected by the changes, understanding your obligations is essential. 

We’re breaking down what’s changing in South Australia and the ACT, who’s impacted and what steps employers should take next.

South Australia changes: Portable long service leave introduced for the community services industry

On 1 October 2025, the South Australian Government introduced a new Portable Long Service Leave scheme for the Community Services Industry under the Portable Long Service Leave Act 2025 (SA).

The scheme allows covered workers to accrue long service leave based on their service to the industry rather than a single employer. This means that if a worker moves from one community services provider to another, their long service leave balance travels with them.

The scheme is funded by a levy paid by employers, administered by the newly established Community Sector Board (Board).

If you’re an employer in this sector, the scheme introduces a number of obligations you’re required to comply with. We’ve broken down the key details, so you can make sure you’re fulfilling your compliance obligations. 

Who is the scheme meant to cover?

The scheme applies to employers of workers who provide “community services”, as defined, in South Australia. A worker provides such services if two requirements are satisfied.

First, the service they provide must be at least one of the following listed:

• Aboriginal and Torres Strait Islander community services
• Accommodation support services
• Advocacy services
• Alcohol and other drug services
• Child safety and support services
• Community development services
• Community education services
• Community legal services
• Counselling services
• Disability emergency response services
• Disability support services 
• Employment services
• Family and domestic violence services
• Family day care services
• Financial counselling services
• Foster care and out-of-home care services
• Home and community care services
• Homelessness support services
• Lesbian, gay, bisexual, transgender and intersex services
• Mental health services
• Migrant and multicultural support services
• Offenders transitioning services
• Respite services
• Seniors community support services
• Sexual assault and sexual violence services
• Social housing services
• Violence prevention services
• Women’s services
• Youth justice services
• Youth support services

Second, they must be capable of being covered by either the Social, Community, Home Care and Disability Services Industry Award 2010 or the Aboriginal Legal Rights Movement Award 2016. 

Throughout this article, we’ll refer to workers who meet the requirements as ‘Eligible Workers’.

How does the scheme work?

Eligibility to access long service leave under this scheme is determined by an Eligible Worker’s total “effective service” within the community services sector.

These workers are generally entitled to 13 weeks of leave after completing 120 months (10 years) of total service in the sector. If they’re covered by an enterprise agreement that explicitly allows for long service leave to be taken before 10 years, they may be able to claim their leave earlier.

After this initial period, they continue to earn leave at a rate of 1.3 weeks for every additional 12 months of service.

If they leave the community services sector entirely, they can claim a cash payment for their accrued service if they have completed at least 84 months (7 years) of service.

What are employers required to do?

If you employ Eligible Workers, you have three main obligations:

• Registration
• Returns
• Levy payments

1. Register your organisation

For employers who already have Eligible Workers, you are required to register with the Portable Long Service Scheme within 28 days from the scheme’s commencement date (i.e. within 21 days of 1 October 2025, being 29 October 2025). 

If you need to register but have not done so yet, you should register as soon as possible. Registration is easy and you can do it here.

If you are about to hire an Eligible Worker, or have hired one for the first time after the scheme’s commencement date, you should register within 28 days of employing the worker.

2. Register your workers

Once the registration for your organisation has been approved, the next step is to add or register your Eligible Workers on your employer portal. 

For employers who had Eligible Workers as of the commencement date, this should have been done by 31 December 2025. If you should have registered workers but haven’t yet done so, you should do this as soon as possible.

For those who hire Eligible Workers after the commencement date, you must register them with the scheme within one month of their employment.

3. Lodge quarterly returns and pay the levy

Once worker registration is complete, prepare to lodge a quarterly levy to the Board.

The levy is currently set at 2.2% of an employee’s ordinary weekly pay.

Your first quarterly return (covering the period 1 October 2025 – 31 December 2025) must be lodged and the levy paid by 21 January 2026.

Australian Capital Territory changes: Expansion of Portable Long Service Leave

If you operate in the Australian Capital Territory, you should be aware of the upcoming expansion of the ACT’s portable long service leave scheme. While initially scheduled for 2025, the expansion has been paused to give businesses more time to prepare.

The sectors covered

The scheme expands the already-covered “Services Industry,” which will in the future include:

• Hairdressing and beauty services
• Accommodation, food, beverage and hospitality services

How the scheme works

Under the ACT Services Industry Scheme, workers generally become entitled to long service leave after recording 7 years of service within the industry. This milestone grants an initial 6.06 weeks of leave. 

“Cashing out” accrued long service leave as a lump sum payment is permitted in specific circumstances, ranging from leaving the industry entirely to suffering from total incapacity. Each circumstance has its own set of conditions that must be satisfied. Learn more about claiming portable long service leave in the services industry.

There is nothing that stops an employee from accruing long service leave under both the Long Service Leave Act 1976 (ACT LSL Act) and the scheme concurrently. However, specific mechanisms exist under both the ACT LSL Act and the scheme to prevent double dipping.

Employees covered by the scheme

To be covered by the expanded scheme, workers must perform “Eligible Services” or work that contributes to the overall delivery of such services (i.e. incidental work). 

You can see the full list of the eligible services on the ACT Leave website.

Employer obligations and deadlines

The expanded scheme will commence on 1 July 2026. Employers of Eligible Workers in these new sectors must register with the ACT Long Service Leave Authority (ACT Leave). The deadline for registration is 30 June 2026. Your registration will then be activated on the Commencement Date. You can register via the portal.

In addition to the requirement to register at an Employer level, employers must also register their Eligible Workers and report their service history in a Service Record. The Service Record must also include information on these workers’ total gross ordinary wages earned for each quarter. 

Employers will then be required to pay a levy (currently set at 1.07% of ordinary wages) and lodge quarterly returns. Payment and return lodgement must be done at the same time. The first due date has been set for 31 October 2026.

Consequences for non-compliance

Failure to register or pay the levy by the due dates may result in:

• Financial penalties: Penalties apply for failure to register or submit returns. Failure to register can attract a maximum penalty of 50 units. Failure to submit returns in a timely fashion can attract a maximum penalty of 20 units. One penalty unit, at the time of writing, is equivalent to $160 for individuals and $810 for corporations. 

• Interest: Penalty interest may also be charged on any late levy payments. The current interest rate is 7.5%.

Are you ready for the changes? Employment Hero can help you get prepared.

With our HR advisory service, you’ll have unlimited access to HR and employment advice, compliance checks, approved tools and templates and even representation. 

We’ll help give you the confidence and peace of mind to manage your workforce and focus on your business goals. If you’d like to learn more, get in touch with one of our business specialists today.

Disclaimer: The information in this article is current as at 14 January 2026, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.