If your organisation operates in the community services sector in New South Wales, a significant legislative change is on the horizon, and it could impact your obligations as an employer.
From 1 July 2025, eligible employers under the Community Services Industry (CSI) Portable Long Service Leave Scheme will be required to register with the Long Service Corporation (LSC). Then, from 2026, a levy of approximately 1.7% of your total gross ordinary wages paid to eligible workers will become payable.
As a small accountancy firm based in Southern Sydney, Hopscotch Accounting specialises in supporting not-for-profits and community-focused organisations. Here’s a breakdown of what these changes mean and how you can prepare.
What Is Portable Long Service Leave?
Traditional long service leave rewards employees for extended service with a single employer. However, the community services sector often has a highly mobile workforce. Portable long service leave allows eligible workers to accrue leave entitlements across multiple employers within the same industry.
This model already exists in other industries such as construction and security — and now it’s being extended to community services in NSW.
Who Is Affected?
The scheme applies to employers who:
- Operate in the community services industry in NSW.
- Employ workers who deliver community-based services, including aged care, disability support, housing, family services, and other not-for-profit care services.
If you’re unsure whether your organisation is considered eligible, the team at Hopscotch can help you assess your obligations based on the type of services you provide and your funding model.
Key Dates You Need to Know
- From 1 July 2025: Eligible employers must register with the Long Service Corporation (LSC).
- From 2026: Employers will need to submit quarterly returns and pay a levy. The expected levy rate is 1.7% of gross ordinary wages paid to eligible workers.
The levy is not optional and must be factored into your annual financial planning and payroll compliance processes.
What Should You Know?
- Determine Eligibility: Not all employers or workers will be covered. Start by reviewing your organisational structure and employee classifications.
- Plan for the Levy: A 1.7% levy could impact your payroll budget, especially if your organisation is already operating on tight margins. Consider updating your forecasts for FY26 and beyond.
- Update Your Payroll Systems: Ensure your payroll system can accommodate new reporting requirements.
- Educate Your Team: This is a new obligation — not just for payroll and finance, but also for HR and executive leadership.
- Seek Advice Early: Avoid scrambling at the last minute. Compliance requirements will likely be monitored and enforced.
How We Can Help
At Hopscotch Accounting, we understand that the not-for-profit and community services sectors already juggle complex funding models, compliance requirements, and reporting standards. We can help you:
- Understand how the CSI scheme applies to your organisation.
- Forecast and budget for the new levy.
- Update internal financial processes to ensure compliance.
- Communicate clearly with your board and stakeholders.
A Little Confused? You’re Not Alone.
This is a new and unfamiliar space for many community service employers — and we’re here to help you make sense of it.
Give the Hopscotch team a call today and we’ll walk you through your responsibilities under the new portable long service leave scheme.
Let’s make sure you’re ready well before the deadline.
📞 1300 HOP 123 or www.haccounting.com.au.
