If your organisation operates in the community services sector in New South Wales, there is an upcoming change that will affect employer obligations and financial planning.
From 1 July 2025, eligible employers must register for the Community Services Industry (CSI) Portable Long Service Leave Scheme. From 2026, a levy on wages will apply.
This guide explains what the change means and how to prepare in a structured way.
For many organisations, this will sit alongside existing payroll and compliance requirements, making it important to review your broader bookkeeping and payroll processes early.
What is portable long service leave?
Traditional long service leave is based on continuous service with one employer.
In sectors with a mobile workforce, this model does not always reflect how people work. Portable long service leave allows eligible employees to accrue entitlements across multiple employers within the same industry.
This approach already exists in industries such as construction and security. It is now being introduced to community services in NSW.
Who is affected
The scheme applies to employers that:
- operate within the community services industry in NSW
- employ workers delivering community-based services
This may include organisations involved in:
- aged care and disability support
- housing and homelessness services
- family and community support programs
Eligibility depends on the type of services provided and how workers are classified. If this is unclear, it is important to review your structure before the registration date.
Key dates to plan for
- 1 July 2025: Registration with the Long Service Corporation (LSC) becomes mandatory for eligible employers
- From 2026: Quarterly reporting and levy payments commence
The expected levy rate is approximately 1.7 percent of gross ordinary wages for eligible workers.
This is not optional and should be factored into forward planning.
What this means for your organisation
The introduction of the scheme creates a new layer of payroll and financial responsibility.
In practice, this means:
- additional reporting requirements
- ongoing levy calculations
- changes to payroll processes
- greater need for accurate employee classification
These requirements are similar to other compliance areas, where consistency and documentation are critical.
Key areas to review now
1. Confirm eligibility
Start by reviewing your organisation’s activities and workforce structure.
Not all roles may be covered, so clarity here is important.
2. Plan for the financial impact
The levy will increase payroll-related costs.
Even a small percentage can have a noticeable impact for organisations operating on tight budgets.
Update your forecasts to reflect this change.
3. Review payroll systems
Your payroll system should be able to:
- identify eligible workers
- track relevant wages
- support accurate reporting
This is often a good time to review how your payroll integrates with your broader finance function.
4. Align internal teams
This change affects more than finance.
HR, payroll, and leadership teams should understand:
- who is covered
- what needs to be reported
- how the levy is calculated
5. Strengthen governance and reporting
Boards and committees will need visibility over:
- the financial impact of the levy
- compliance status
- any risks or gaps in reporting
Clear reporting supports better decision-making and reduces compliance risk.
Common challenges
Organisations may face challenges such as:
- uncertainty around eligibility
- difficulty tracking eligible wages
- limited payroll system capability
- lack of internal capacity to manage new requirements
These are common when new schemes are introduced and can be addressed with a structured approach.
What good looks like
A well-prepared organisation will have:
- confirmed eligibility and worker classifications
- updated payroll systems and processes
- clear documentation and reporting workflows
- forecasted the financial impact of the levy
- board visibility over compliance and cost implications
This creates confidence and reduces pressure as deadlines approach.
When to get support
You may benefit from support if:
- your organisation has a complex workforce structure
- payroll processes are manual or inconsistent
- you are unsure how the scheme applies to your services
- you need to update forecasts and reporting
Early planning makes implementation more manageable.
Start a conversation
The portable long service leave scheme introduces a new requirement, but with the right structure, it can be managed as part of your regular finance processes.
Hopscotch Accounting supports not-for-profits and community organisations with payroll, compliance, and reporting through clear systems and practical processes.
Start a conversation to review how these changes apply to your organisation and plan your next steps.
FAQ’s
Portable long service leave allows eligible workers to accrue leave entitlements across multiple employers within the same industry, rather than with a single employer.
Eligible employers must register with the Long Service Corporation from 1 July 2025, with levy payments and reporting commencing from 2026.
The levy is expected to be approximately 1.7 percent of gross ordinary wages for eligible workers, although final rates should be confirmed closer to implementation.
