Portable long service leave for community services sector: South Australia’s new scheme explained

From 1 October 2025, the new community services sector ‘portable’ long service leave scheme (Portable Scheme) will commence in South Australia.

Under the Portable Scheme, eligible employees working in the community services sector will be able to carry their long service leave entitlements with them as they move between different employers in the sector.

The Portable Scheme is directed towards addressing perceived concerns that those working in the community services industry, which features high staff turnover and short-term employment arrangements dependent on government funding, are unfairly missing out on accessing long service leave entitlements. Portable long service leave schemes already operate in Victoria, Queensland and the Australian Capital Territory (and will soon be introduced in New South Wales).

The Portable Scheme will apply to any permanent or casual employee who:

• is working in one of the community services listed in Schedule 2 of the Portable Long Service Leave Act 2024 (SA) (of which there are many), such as disability support services, drug and alcohol services, youth support services, and family and domestic violence services; and
• performs work that has a rate of pay which is prescribed by either the Social, Community, Home Care and Disability Services Industry Award 2010 or the Aboriginal Legal Rights Movement Award 2016, (qualifying work).

All employers in the community services sector with at least one employee who performs this qualifying work will need to do the following.

1. Register for the Portable Scheme

Employers must register for the Portable Scheme by no later than 28 October 2025 via an online portal (to be made available at saplsl-community.org.au).

2. Submit quarterly employer returns

Each quarter, employers must:

• report the hours worked by eligible employees, and the remuneration paid to them; and
• pay a levy into the industry fund (2.2 per cent of eligible employees’ remuneration).

The first quarterly employer return is expected to be available from the end of December 2025 and due for lodgement by 21 January 2026. Employers will also be required to pay any applicable levies for the quarter by 21 January 2026.

3. Keep records

Employers must retain certain records for at least 7 years, including employee classification, payroll and attendance records, pay rates and employment contracts.

The long service leave entitlements that will apply under the Portable Scheme will be similar to those that currently apply under the Long Service Leave Act 1987 (SA).

Relevantly:

• long service leave will accrue based on an employee’s period of “qualifying service”;
• once an employee accrues 10 years of qualifying service, they will be entitled to 13 weeks of long service leave. Employees will thereafter be able to access 1.3 weeks of long service leave for each further year of qualifying service; and
• an employer and employee may agree that the employee will receive a payment in lieu of all or part of their long service leave.

Payments in respect of long service leave will be managed and paid by the Community Services Sector Long Service Leave Board (Board). Other than in situations where an employee’s qualifying service includes service undertaken prior to the commencement of the Portable Scheme (discussed below), employers will not be responsible for paying out long service leave entitlements.

If an employee changes employer before becoming entitled to take (or be paid) long service leave, the employer will not be able to recover any of the levies paid into the fund in respect of the employee.

Payments in respect of long service leave will be calculated based on an employee’s average weekly rate of pay over the three preceding years (although rates will vary if a long service leave payment is in respect of qualifying service undertaken prior to the commencement of the Portable Scheme).

Long service leave payments will be made in advance for the whole period of leave (whereas under the Long Service Leave Act 1987 (SA) payments are typically processed in line with usual pay cycles).

Unless otherwise agreed by their employer, an employee will not be entitled to take long service leave during their first three months of employment with that employer.

An employee will be entitled to apply for payment of their accrued untaken pro-rata long service leave if they:

• have accrued at least 7 years’ qualifying service;
• have ceased performing qualifying work; and
• will not be performing qualifying work for a continuous period of at least 12 months.

An employee’s period of continuous service in respect of qualifying work with their employer prior to the commencement of the Portable Scheme (pre scheme service) will be credited as qualifying service for the purposes of the Portable Scheme. For example, an employee who has been working for their employer (performing qualifying work) for 4 years will have that period of service credited to the Portable Scheme.

However, pre scheme service will only be credited if the employee remains with the same employer until they accrue at least 7 years of qualifying service (which may comprise solely of pre scheme service or a combination of pre and post scheme service). For example, if an employee with 4 years of credited pre scheme service continues working for the same employer for a further 2 years and then changes employer (when their total qualifying service is 6 years), they will forfeit the 4 years of pre scheme service and their qualifying service will re-set at 2 years.

Where an employee becomes eligible to take (or be paid) long service leave and their qualifying service includes a period of pre scheme service, their employer will be liable to reimburse the industry fund for a portion of the employee’s long service leave entitlement (equivalent to the pre-scheme service period).

Employers will therefore need to be mindful of maintaining their existing long service leave provisioning to ensure that they have sufficient funds on hand to meet their reimbursement obligations.

Employees of South Australian-based businesses who work in another State or Territory will need to be registered for the portable long service leave scheme operating in that State or Territory (if such a scheme exists). Where no portable scheme exists, those employees will be covered by the non-portable long service leave scheme in South Australia or in the State or Territory in which they work.

Community services employers should take prompt action to familiarise themselves with the requirements of the Portable Scheme in order to ensure they are ready to register for the scheme before the deadline of 28 October 2025.

Employers will also need to be prepared to:

• identify which of their employees will be covered by the Portable Scheme;
• consult with affected employees about the changes; and
• take any necessary steps to prepare their internal HR and payroll systems for accurate reporting.

Failure to comply with registration, reporting, levy payments or record-keeping requirements may expose employers to civil penalties of up to $10,000. Additionally, failure to submit a return or pay a levy by the due date will incur penalty interest at a rate of 20 per cent per annum and may result in an additional fine being imposed by the Board.

There are some quite complex provisions dealing with situations where an employee has accrued both pre scheme and post scheme service and where an employee moves in and out of the Portable Scheme (such as where an employee transfers to a different role with the same employer that does, or does not, involve qualifying work). Businesses that may have employees falling into one or more of these categories should obtain specific advice.

This article provides general commentary only. It is not legal advice. Before acting on the basis of any material contained in this article, seek professional advice.

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