Portable long service leave scheme launches for NSW community services sector

From 1 July 2025, the NSW Government will implement a new Community Services Industry portable long service leave scheme (CSI scheme), designed to support workers in the community services sector who often change employers due to the nature of their work. 

What is portable long service leave? 

Traditionally, long service leave requires 10 years of continuous employment with a single employer. However, many community service workers, such as those in domestic violence support, homelessness services and community housing, frequently move between organisations.  

Under the CSI scheme, workers become eligible for up to six weeks of paid long service leave after seven years of service within the industry, regardless of how many employers they've had during that time. This applies to full-time, part-time and casual employees.  

Employer obligations 

The new long service leave scheme covers two main groups of workers. First, it covers any worker or contractor who performs a community service. Secondly, it covers all employees, including those engaged by labour hire who are employed by a business whose main purpose is to provide community services. This means the scheme will cover all workers of that employer, including administration and management staff.   

The Community Services Industry (Long Service Leave) Act 2024 lists 31 types of community services that the scheme covers. However, it does not include residential aged care and early childhood care and education. It is important to understand whether your work as an employer or the services performed by your workers falls under any of the 31 listed types, as this will determine if you need to register in the scheme. 

Employers in the community services sector must take several steps to comply with the new scheme: 

• Registration: From 1 July 2025, employers with one or more workers in the community services industry are required to register with the Long Service Corporation and begin recording service hours for worker registrations. 
• Levy payments: Employers must pay a quarterly levy. The levy is expected to be 1.7 per cent of the gross ordinary wages paid to registered workers.  
• Levy returns: The first service return and levy payment (covering the first three quarterly returns) for the scheme is due from April 2026. The Long Service Corporation will advise of the date when it is known.  
• Record keeping: Employers are responsible for maintaining accurate records of their employees' service. The Long Service Corporation will provide templates to assist with this process.  

Foundation worker bonus 

Workers who appear on the first two service returns (from 1 July to 31 December 2025) will receive an automatic Foundation Worker bonus of 365 days of service credits to their record. This means they can access their long service leave entitlements after six years instead of seven.  

Preparing for the scheme 

Employers should assess their eligibility and understand their obligations under the scheme. The Long Service Corporation provides resources and a self-assessment tool to assist employers in determining their responsibilities.  

To stay informed about the scheme and receive updates, employers can subscribe to the Long Service Corporation’s mailing list.   

For more information, visit the Long Service Corporation's Community Services Industry page.