NSW Government introduces Portable Long Service Scheme for the Community Services Industry

Long service leave has traditionally rewarded loyalty to a single employer. But what if your team members often move between jobs in the same industry? Get ready for a game-changer in NSW’s community services sector.

Did you know that employees who complete long periods of service with one employer are generally entitled to receive an additional type of leave called ‘long service leave’?

The rules for long service leave, including when an employee will be entitled to receive it and how much leave they are entitled to, is determined by each Australian state or territory. 

Recently, the NSW Government announced the creation of a new portable long service leave scheme for the Community Services Industry. 

Jackson Downer, Employment Lawyer at Employment Hero shares everything you need to know about this new scheme so you’re prepared from 1 July 2025.

What is a portable long service scheme?

A portable long service scheme is a government initiative that allows employees who work in specific industries the ability to earn long service leave, despite being employed with multiple different employers within that period. 

Typically these schemes are created for industries where employees often change jobs and will generally not obtain 10 years of service with a single employer. Examples of this are the building and construction industry, contract cleaning industry, and now the community services industry. 

Under this new scheme, NSW employees in the community services industry will be eligible to take long service leave after 7 years of service within the industry, despite working for multiple employers. In some instances, such as when a worker permanently leaves the industry, workers may be eligible to apply for a pay-out of their long service leave.

The new scheme will be funded via a levy paid quarterly by eligible employers and any self-employed contractors. Contractors will be required to opt-in to the scheme, and for employers with employees in the community services industry, participation is mandatory.

Employers will pay a levy into the scheme’s central fund each quarter, based on the number of hours eligible employees work. Then, when employees are eligible to take long service leave, they will be paid out of the fund, rather than the employer paying them directly. 

The levy amount will be set by the government, and is expected to be calculated as 1.7% of the gross ordinary wages paid to registered workers.

What is classed as the community services industry?

The legislation provides key definitions of community services and community service work, which both the employer and worker must satisfy in order to be covered by the scheme. 

This means that the community service work that will be covered by the scheme includes both: 

1. providing work for a community service; or
2. providing work for an employer, if the predominant purpose of the employer is to provide a community service. 

This means that someone working in, for example, an administrative role for a community service provider will be an eligible employee under the scheme. However, this is provided that the majority of the employer’s core activities and resource allocation are related to community service work.

An employee who is engaged to perform community service work will be eligible for the scheme, regardless of what their employer’s predominant purpose is. 

The legislation specifically provides the following as examples of community services:

• Aboriginal and Torres Strait Islander community services
• 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
• Community welfare services
• Disability supports and services
• Employment services
• Family and domestic violence services
• Family support services
• Financial counselling services
• Foster care services
• Homelessness support services
• Lesbian, gay, bisexual, transgender and intersex services
• Migrant and multicultural support services
• Neighbourhood and local community services
• Out-of-home care services
• Respite care services
• Settlement and refugee services
• Sexual assault services
• Social housing services
• Social work
• Women’s health support services
• Youth justice services
• Youth support services

The following types of work are currently excluded from counting as community services work: 

• Residential aged care 
• Early childhood care and education 

Does this scheme apply to me or my business?

The Scheme will apply to all eligible employers and employees who work within the community services industry in New South Wales. Eligible employers are those who employ 1 or more people to do community service work, or supply a person through a labor hire arrangement to do community service work. 

Self-employed contractors doing community service work will be able to opt-in to the scheme by registering themselves as a worker. 

The scheme won’t apply apply to the following employers: 

• Commonwealth, State or Local Government authorities; or
• A company whose only workers are directors, if each director participates in the management of the company or shares in the profit. 

The scheme won’t apply to the following types of workers: 

• Workers under a contract of service with a partnership if the person is a partner and participates in the management of the partnership or shares the profits, or
• Workers under a contract, whether or not a contract of service, with a corporation of which the person is a director, or
• Workers under a contract, whether or not a contract of service, with a trust of which the person is a trustee, or
• A worker who is directly employed by a Federal, State or Local Government agency. (Workers of organisations who receive funding from Government agencies to provide a community service, are included in the scheme).

What is the entitlement? 

Eligible employees will be entitled to receive up to 6 weeks of long service leave once they have obtained 7 years of service in the community services industry, regardless of how many employers they have worked for.

When does the scheme commence? 

The new portable long service leave scheme will commence on 1 July 2025, with employers in the community services industry required to register and commence recording service credits for their eligible workers.

Employers will have 1 month from commencement or until 1 August 2025 to register for the scheme or potentially face penalties. For new employers commencing business in the community services industry after this date, they will have 1 month from when they start employing people to register with the scheme, or potentially face penalties. 

The lodgment of worker service credits to the scheme will need to be done on a quarterly basis (each 3 months). Each quarter, an eligible employer will be required to lodge records of their worker service credits and make payment of a special levy to the scheme. This will be calculated as a certain percentage of the wages paid to eligible workers. 

When is the first lodgement due?

In order to provide eligible employers with adequate time to prepare, make records and account for the levy, the first lodgment won’t take place until April 2026. This means that employers will need to commence making records for their eligible workers from 1 July 2025, but these won’t be lodged with the scheme until April 2026. 

From this date, employers will be required to lodge their first 3 quarters (9 months) of reports to the scheme. Employers will also be required to make 3 quarters worth of levy payments in April 2026 (i.e. for the period July 2025 to start of April 2026).

From April 2026 employers will need to lodge service records and levy payments on a quarterly basis. 

From April 2026 workers will be able to register for the scheme and manage their entitlement through the scheme’s online portal. 

If I’m an employer in the community services industry, what do I need to do now? 

From 1 July 2025, employers with at least 1 employee working in the Community Services Industry will need to register with the Long Service Corporation and begin recording worker service hours. 

The Long Service Corporation will provide eligible employers with a template to assist them in recording eligible workers’ hours and maintaining records of service for their employees from 1 July 2025. 

Given the above requirements, employers should complete the self-assessment tool provided by the New South Wales Government (and available here) to assess their eligibility to participate in the scheme as soon as possible. Employers will be able to identify if their predominant purpose is to provide a community service and/or whether any of their workers provide a community service.

Is there anything else I need to know?

Workers who appear in records lodged with the scheme for the period 31 July 2025 – 31 December 2025 (the first two quarters of the scheme) will receive an automatic Foundation Worker bonus of 365 days service credits to their record. This means that an employee working during this period will automatically be credited with an extra year of service under the scheme towards their long service leave accrual. There is no additional costs to employers for the bonus year, other than the usual levy.

Importantly, the scheme does not replace an employee’s entitlement to long service leave in New South Wales if they have completed 10 years of service with a single employer. In other words, employees will be entitled to both portable long service leave payments from the scheme and long service leave payments from their employer (if they reach 10 years service with the same employer).

What are other portable long service leave schemes?

Portable long service obligations exist in a number of states and territories.

New South Wales (Long Service Leave Corporation)

• Building and Construction Industry
• Contract Cleaning Industry
• (and now) Community Services Industry 

Queensland (Qleave) 

• Building and Construction Industry
• Contract Cleaning Industry
• Community Services Industry

Victoria (Portable Long Service Leave Authority)

• Community Services Industry
• Contract Cleaning Industry
• Security Industry

South Australia (SA Portable Long Service Leave) 

• Construction Industry
• Community Services Industry

Western Australia (MyLeave) 

• Construction Industry

Australian Capital Territory (ACT Leave)

• Building and Construction Industry
• Community Sector Industry
• Security Industry
• Services Industry (formerly Contract Cleaning Industry but will be expanded from 1 July 2026 to include hairdressing, beauty service, hospitality services and accommodation and food services) 

Northern Territory (NT Build) 

• Construction Industry

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

Long service leave has traditionally rewarded time served in one role, but NSW’s new portable long service leave scheme for the Community Services Industry is changing this.

This move marks a shift toward greater flexibility for workers in traditionally mobile sectors. For employers, it’s time to know your obligations and put the processes in place to support your team. 

When new changes come into effect, it can be difficult to know you’re fulfilling your employer obligations. To help boost your compliance confidence, our team of HR experts can help you understand your obligations and help you get set up for this change. 

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

Disclaimer: The information in this article is current as at 26 June 2025, 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.