Effective 1 July 2025, the NSW Government is introducing a new portable long service leave scheme for the community services industry.

What is the new scheme about?

Traditionally, long service leave entitlements only applied when a worker remained with the same employer for 10 or more years. In the community services sector, where many employees move between different organisations, this often meant they missed out on long service leave altogether.

To address this, the NSW Government has introduced the Community Services Industry (CSI) Portable Long Service Leave Scheme, commencing 1 July 2025. The scheme recognises the unique nature of the sector and ensures that service across multiple employers still counts toward a worker’s long service leave entitlement.

How the scheme works

Under the new scheme:

• Workers will become eligible for long service leave after seven years of service within the industry, even if that time is spread across multiple employers.
• Eligible workers can accrue and claim up to six weeks’ paid long service leave, calculated on their ordinary wages (excluding overtime).
• The leave can be taken in full or in parts, and in some cases—such as permanently leaving the industry—workers may be entitled to a payout of their accrued leave.
• The scheme will be funded by a quarterly levy, payable by registered employers and self-employed contractors who choose to opt in.
• If you are a self-employed Community Services worker—for example, if you provide services to clients under the NDIS—you can elect to participate in the scheme voluntarily to start accruing long service benefits for yourself.

Key dates for employers

• 1 July 2025: Employers with one or more workers in the NSW Community Services Industry must register with the Long Service Corporation and begin recording worker service.
• April 2026: Lodgement of the first service returns and levy payments for the period 1 July to 31 March 2026 will be due. This provides employers with time to prepare their systems and budget for levy obligations.
• April 2026: Worker registration under the scheme also begins.
• Workers included on the first two service returns (covering July–December 2025) will automatically receive a foundation bonus of 365 service days credited to their record.

It’s important to note that this scheme does not replace or override existing entitlements under the NSW Long Service Leave Act 1955—which still applies for employees who remain with a single employer for 10 consecutive years.

What employers should do now

If you employ staff or contractors within the NSW Community Services Industry, it’s time to start preparing:

• Review your workforce and determine which roles fall within the scope of the scheme.
• Set up internal processes to track service periods and wages from 1 July 2025.
• Budget for levy payments commencing in April 2026.
• Register with the Long Service Corporation when the scheme opens.

For detailed information, visit the official site:
Long Service Corporation – Community Services Industry Scheme

Need help managing your obligations?

If you’re unsure how this new scheme affects your business—or you’re a self-employed contractor wanting to understand whether opting in makes sense for you—the Divergent Numbers team can help you navigate your options with confidence.

Contact us today to discuss how we can assist your organisation (or yourself) in preparing for the upcoming changes.