Temporary levy reduction to provide relief to the community services sector

Community service employers across NSW will benefit from immediate cost savings following the announcement of a temporary reduction to the levy for the Community Services Portable Long Service Leave Scheme.

For the 2025–26 financial year, the levy will be reduced by almost 25 per cent and is estimated to deliver $50 million in savings across the community services sector. The temporary levy reduction aims to ease pressure on community service organisations, including small businesses, grappling with rising operating costs.

What this means for employers

The lower rate will reduce employer contributions for the 2025-26 financial year. Based on Government estimates:

• A small organisation with around 10 employees could save up to $2,477.
• A medium organisation with around 100 employees could save up to $16,900. 

For many businesses, these savings may help offset increasing costs related to fuel, utilities and staffing, and support cash flow while maintaining essential services.

The temporary levy reduction does not change how leave accrues, the value of entitlements or workers’ benefits. 

Key dates

• Levy payments open: 29 April 2026
• Final payment due: 31 May 2026 

Employers should ensure they apply the updated levy rate when preparing their 2025-26 payments.

How this fits with the CSI scheme

The Community Services Industry portable long service leave scheme commenced on 1 July 2025. It enables eligible workers to carry long service leave entitlements across employers, reflecting the high level of workforce mobility and short-term contracting arrangements within the community services sector. The Small Business Commission previously published information on the CSI scheme, which you can find here.

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

For more information on the reduced levy or the Portable Long Service Levy Scheme, visit the Long Service Corporation's Community Services Industry page.