The NSW Portable Long Service Leave Scheme has officially commenced, marking a major shift for employers and workers in the community service sector.
Effective from 1 July 2025, the scheme enables eligible workers to accrue long service leave entitlements across different employers, improving job security in an industry known for high staff turnover and contract-based work.
In this article, we’ll break down how the scheme works, who it covers, and what it means for NDIS providers and other employers across the sector.
Portable long service leave allows eligible workers to accrue long service leave entitlements based on total service in an industry, rather than with a single employer. This approach is especially valuable in sectors like community services, where workers often move between organisations.
Under this model, leave entitlements are preserved across job changes, helping to protect workers’ rights and encourage long-term retention in the sector.
Portable long service leave schemes already exist across industries such as:
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Building and construction
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Contract cleaning
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Security
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Community services
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Coal mining
Each jurisdiction in Australia has its own rules and minimum service periods. You can learn more about NSW’s portable long service leave scheme from the Long Service Corporation.
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Before 1 July 2025, community service workers in NSW could only access long service leave after 10 years with the same employer, an unrealistic threshold in a sector known for contract-based and mobile work.
To address this, the NSW Parliament passed the Community Services Sector (Portable Long Service Leave) Bill 2024 on 20 June 2024. The scheme commenced on 1 July 2025, following Royal Assent.
It now enables eligible workers to accrue long service leave based on time spent working in the sector, regardless of how many employers they’ve had.
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The scheme applies to both for-profit and not-for-profit organisations that provide community services in NSW.
Eligible job roles include (but are not limited to):
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Disability support workers (SCHADS)
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Domestic and family violence support workers
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Youth workers
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Homelessness and housing support staff
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Aged care workers
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Community development officers
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Case managers
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Counsellors and social workers
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Settlement and multicultural services workers
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Community transport drivers
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Aboriginal and Torres Strait Islander liaison officers
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Mental health and drug/alcohol support workers
View the full list of covered roles on the Long Service Corporation website.
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Entitlement
Workers accrue 6 weeks of paid long service leave after 7 years of service in the sector.
Portability
Leave accrual follows the worker, not the employer.
Funding
Employers pay a Scheme Levy, which is used to fund leave entitlements.
Administration
Employers must register with the scheme and report employee data quarterly.
The scheme is a significant win for the estimated 250,000 workers in the NSW community services sector. Key benefits include:
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Greater job mobility without sacrificing entitlements
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Reduced stress and burnout through better access to leave
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Recognition of ongoing service to the sector, regardless of employer changes
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Encouragement for workers to remain in community service careers long term
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Employers in the community services sector must now:
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Register with the Long Service Corporation
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Pay the Scheme Levy as required
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Submit regular employee service and wage data
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Maintain accurate payroll and service records
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Communicate the new entitlements to staff
To manage this efficiently, organisations may want to implement or update automated payroll and HR systems.
Find out more at the Long Service Corporation’s Employer Portal.
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Victoria
Victoria has expanded its portable long-service leave scheme to include the community services sector. Employers in this sector must register with the Portable Long Service Authority if they employ at least one person to perform community service work, whether they are a non-profit or for-profit entity. The scheme covers workers under five specific community services sector awards, regardless of their employment arrangement.
Queensland
QLeave administers the portable long service leave scheme for the community services industry in Queensland, which started on January 1, 2021.
Employers pay a levy to QLeave each quarter and submit a return detailing their employees' wages. Workers are entitled to 6.1 weeks of long service leave, paid by QLeave, after accruing seven years of service in the industry, regardless of changes in employers.
Australian Capital Territory (ACT)
The ACT introduced a portable long-service leave scheme for the community sector in accordance with the Long Service Leave Act (Portable Schemes) Act 2009. Eligible workers can accrue long service leave entitlements while moving between employers or even while self-employed.
As of July 1, 2010, registered workers are entitled to 4.33 weeks of leave after five years of recorded service and an additional 0.867 weeks for each year thereafter. Employers must register with ACT Leave and pay a levy of 1.85% of their employees' gross ordinary wages.
South Australia
The South Australian government has released a consultation draft of the Portable Long Service Leave Bill 2024, proposing a portable long-service leave scheme for the community services sector. Under the proposed scheme, workers would be entitled to 13 weeks of paid long-service leave after accruing the equivalent of 10 years of full-time employment.
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- NSW’s portable long service leave scheme commenced on 1 July 2025.
- Eligible workers now accrue leave based on industry service, not employer tenure.
- The scheme applies to a wide range of community service roles and organisations.
- Employers must register, report, and pay levies to remain compliant.
- Workers receive 6 weeks of paid leave after 7 years, improving retention and wellbeing.
Want to learn more about long service leave rules across Australia, including part-time, casual, and payout entitlements? Read our full Long Service Leave FAQ guide here.
Who pays for long service leave in NSW?
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Traditional schemes: The employer is responsible for funding long service leave.
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Portable schemes: In sectors like construction or community services, a levy-funded scheme pays out the entitlement. Employers contribute to this fund through quarterly levies.
How do I claim long service leave?
For standard long service leave, employees apply directly through their employer. For portable schemes, workers submit a claim through the relevant authority. In NSW community services, this is the Long Service Corporation.
Do casuals get long service leave?
Yes. Casual employees can accrue long service leave in NSW if their employment is regular and systematic and meets the required period of service. The same applies in portable schemes, provided the role and employer meet eligibility criteria.
Do you accrue long service leave on maternity leave?
Yes. In most cases, paid parental leave counts as service, so you continue to accrue long service leave during that time. Unpaid parental leave may not count, depending on duration and continuity of service. Check your specific award or agreement.
Can long service leave be paid out in NSW?
Yes, long service leave can be paid out in certain circumstances, but generally not while you're still employed.
Here’s when payout is allowed:
On termination of employment after 10 years of continuous service with the same employer. You're entitled to full payment for any unused long service leave.
On termination after 5 years but before 10 years, pro rata long service leave must be paid out if:
- The termination is for any reason other than serious misconduct (e.g. resignation, redundancy, retirement).
- You have completed at least 5 years of continuous service.
Long service leave cannot generally be cashed out while you're still employed unless your award, registered agreement, or contract specifically allows for it, which is rare in NSW.
Managing SCHADS and long service leave just got easier.
If you're an NDIS provider navigating complex entitlements under the SCHADS Award, including the new NSW Portable Long Service Leave Scheme, Pay Cat can help.
Book a demo to see how our compliant payroll system makes leave accruals, reporting, and award interpretation simple.
Who is Pay Cat?
Pay Cat are payroll specialists dedicated to helping Australian businesses simplify payroll and ensure 100% compliance with modern awards. As Employment Hero Payroll experts, we provide tailored solutions that streamline payroll processes, reduce errors, and save time. For SCHADS businesses, our industry-first, 100% compliant SCHADS interpreter template guarantees accurate award interpretation and automation.
Video: How Pay Cat helps NDIS providers simplify SCHADS and portable long service leave compliance.