NSW Portable Long Service Leave: What Community Services Employers Need to Know (2026)

Updated October 2026.

The NSW Community Services Industry Portable Long Service Leave Scheme started on 1 July 2025. It lets community services workers build up long service leave across different employers, instead of starting again each time they change jobs. Employers in the sector now have to register, report every quarter and pay a levy. This guide covers what NSW employers need to do, as at October 2026.

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.

You can learn more about NSW’s portable long service leave scheme from the Long Service Corporation.

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.

Any for-profit or not-for-profit organisation providing community services in NSW is covered, including NDIS providers employing disability support workers under the SCHADS Award.

Eligible job roles include (but are not limited to):

• Disability support workers (SCHADS)

• Domestic and family violence support workers

• Youth workers

• Homelessness and housing support staff

• Aged care workers

• Community development officers

• Case managers

• Counsellors and social workers

• Settlement and multicultural services workers

• Community transport drivers

• Aboriginal and Torres Strait Islander liaison officers

• Mental health and drug/alcohol support workers

View the full list of covered roles on the Long Service Corporation website.

Entitlement

Workers accrue about 6.1 weeks of paid long service leave after 7 years of recognised service in the community services industry.

Portability

Leave accrual follows the worker, not the employer.

Funding

Employers pay a levy of 1.7% of each worker's gross ordinary wages from 1 July 2026. The rate was 1.3% for the first year, 2025-26.

Administration

Employers register with the Long Service Corporation, then lodge a service return and pay the levy through the Employer Portal every quarter, within 14 days of the quarter ending.

Figures as at October 2026, from the NSW Government's community services scheme page.

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The scheme is a significant win for workers in the NSW community services sector.

Key benefits include:

• Greater job mobility without sacrificing entitlements

• Reduced stress and burnout through better access to leave

• Recognition of ongoing service to the sector, regardless of employer changes

• Encouragement for workers to remain in community service careers long term

Employers in the community services sector must now:

• Register with the Long Service Corporation

• Pay the Scheme Levy as required

• Lodge a service return every quarter, within 14 days of the quarter ending

• Maintain accurate payroll and service records

• Communicate the new entitlements to staff

Find out more at the Long Service Corporation’s Employer Portal.

When are NSW portable long service leave returns due?

Each NSW return and levy payment is due 14 days after the end of the quarter.

Victoria, Queensland, South Australia and the ACT run their own community services schemes, each with its own rules on reportable wages and due dates. If you report in more than one state, see how Pay Cat Toolbox handles each scheme.

• NSW's community services scheme started on 1 July 2025.
• Workers earn about 6.1 weeks of paid long service leave after 7 years of service in the industry.
• From 1 July 2026, employers pay a levy of 1.7% of each worker's gross ordinary wages..
• Returns and levy payments are due 14 days after each quarter ends.
• Pay Cat Toolbox builds your quarterly return from your Pay Cat Payroll data in minutes.
  

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.

When is the next NSW portable long service leave return due?

The return for 1 July to 30 September 2026 is due on 14 October 2026. Every NSW return is due 14 days after the quarter ends.

What wages is the NSW levy calculated on?

The levy is calculated on each worker's gross ordinary wages. You need to decide which of your pay categories count as ordinary wages before you lodge.

Who pays for long service leave in NSW?

• Traditional schemes: The employer is responsible for funding long service leave.

• Portable schemes: in the NSW community services scheme, employers pay a levy of 1.7% of each worker's gross ordinary wages into a central fund, and the fund pays the worker's leave (as at October 2026).

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.

Who is Pay Cat?

Pay Cat are payroll specialists for SCHADS and community services employers. Pay Cat Payroll runs on our SCHADS Award template, which interprets the award automatically, and Pay Cat Toolbox adds the reports payroll teams usually build by hand, including portable long service leave returns.

Video: How Pay Cat helps NDIS providers simplify SCHADS and portable long service leave compliance.