Insights
Portable Long Service Leave in NSW: Key Employer Obligations Explained
What the new scheme means for community sector employers—and what to do next.
| Portable Long Service Leave – NSW Scheme Now in Effect |
The NSW Government has introduced a new Portable Long Service Leave (PLSL) Scheme for workers in the Community Services sector—bringing significant implications for employers operating in this space.
The scheme, which came into effect 1 July 2024, enables eligible workers to accumulate long service leave entitlements even if they change employers within the sector. This means obligations around leave accrual, reporting, and payroll processes are now shifting from individual organisations to a centralised statutory scheme.
So what does this mean for your organisation? And how should you respond?
Who and what is covered?
Under the Community Services Industry (Portable Long Service Leave) Act 2024, the scheme applies to:
Employers that employ one or more people to perform “community services work”—whether full-time, part-time or casual, including labour-hire arrangements.
Self-employed contractors who deliver eligible community services work (they can opt-in).
Excluded: Direct employees of Commonwealth, State or Local Government agencies, company directors, and business partners in some structures.
What counts as “community services work”?
The legislation defines community services as a wide range of support services that assist vulnerable or at-risk individuals and communities.
The NSW Long Service Corporation recognises 31 service types, including but not limited to:
Aboriginal and Torres Strait Islander community services
Disability support
Child protection and family support
Alcohol and drug rehabilitation
Domestic and family violence support
Homelessness services
Community legal aid
Youth justice and youth support
Financial counselling
Community housing and social housing assistance
Refugee and migrant services
LGBTQIA+ and women’s health support
Note: Aged care or early childhood education providers are only covered if their primary purpose aligns with one or more of the defined service categories.
For the full list of service types, visit the NSW Long Service Corporation website.
Key facts employers should know:
The scheme is mandatory for employers who deliver relevant community services in NSW (including aged care, disability services, community housing, domestic violence, and mental health programs).
Registration is required: All eligible employers must register with the Long Service Corporation.
Quarterly reporting and levy payments: Employers must report service hours and pay a levy on employee wages—regardless of whether staff stay with them long term.
Why it matters
| Area | Impact |
|---|---|
| HR & Payroll | Must track hours and report quarterly |
| Finance | Budget for levy payments (cashflow impact) |
| Compliance | Scheme is mandatory – registration required |
| Workforce | Scheme improves staff portability and retention |
This reform is more than just a compliance update. For employers, it changes the way long service leave liabilities are managed and introduces new administrative and financial responsibilities.
If you’re a CFO, Finance Manager, or HR lead, it’s important to assess how this affects:
Leave accrual and payroll software – adjustments may be needed to align with new rules.
HR onboarding and exit processes – service continuity must be reported even across job transitions.
Workforce planning and budgeting – levy costs and reduced internal leave liabilities may shift your long-term projections.
Strategic implications for community sector organisations
The introduction of this scheme presents a unique moment to review your approach to workforce management:
Cashflow forecasting: While the scheme reduces internal leave liabilities, the levy creates a regular cash cost that must be factored in.
Attracting and retaining staff: Portability may enhance employee satisfaction, especially in sectors facing workforce shortages.
Audit readiness and compliance: Documenting hours, wages, and eligibility accurately will be essential in case of future review.
| Your Obligations at a Glance | |
|---|---|
 | Register with the Long Service Corporation |
 | Report employee service quarterly |
 | Pay levy based on wages |
 | Keep payroll and HR systems updated |
 | Maintain accurate records for review |
Where to go for more information
Employers can find more details, registration forms and FAQs at the official Long Service Corporation website: NSW Portable Long Service Leave Scheme – Community Services
We’re here to help
If you’re unsure about your obligations—or need help assessing the impact on your financial reporting, compliance, or payroll systems—our audit and advisory team is ready to support you.
Book a conversation with the Modoras Audit and Assurance team
