The South Australian Portable Long Service Leave Scheme for the community services sector will now commence on 1 October 2025.
The State Government announced it would introduce portable long service leave to workers in the community services sector at the last State Election in 2022. The Government has since undertaken consultation, and the legislation introducing the scheme for the sector was passed by Parliament in 2024.
South Australia’s Portable Long Service Leave (LSL) scheme, which has provided LSL to construction workers for almost 50 years, has been expanded to include community service sector workers from 1 October 2025.
Thousands of workers in the community services sector who support some of the most vulnerable South Australians including people with disabilities and children will receive LSL entitlements for the first time. These workers have not been eligible for LSL before as they are employed on contracts due to short-term Government funding cycles and often move employers within the sector. From 1 October 2025 they will be eligible for LSL leave even if they move employers.
Portable LSL for community services workers already operates in Victoria, Queensland, and the ACT, and will be introduced in NSW in 2026.
Portable LSL for the community services sector in South Australia has been publicly discussed for many years. For almost a decade the Australian Services Union (SA) has been lobbying for the extension of the portable LSL scheme to community services workers. The South Australian Council of Social Service has also called for portable LSL for the sector, and Labor supported it at the 2018 State Election.
The scheme will be paid for by a levy on all employers in lieu of employers doing their own provisioning for LSL.
The revised date of 1 October 2025 reflects feedback we’ve received from across the sector. Many employers have told us that implementing the scheme alongside end-of-financial-year requirements, changes to the award rate and new NDIS pricing updates are enough to manage and would add unnecessary pressure to an already busy time of year.
We’ve listened - and by moving the commencement to October, we’re giving employers more time to plan, prepare and adjust with confidence.
The State Government is currently drafting Regulations that will support the new legislation. These will define important operational details — including which employee payments are included when calculating the levy. These Regulations are intended to be available for public consultation soon and we will keep you informed with clear guidance and resources available well ahead of the scheme start. When the scheme begins in October, employers will be required to register their eligible workers and pay a 2.2% levy calculated on their wages. The levy will fund LSL for eligible community services workers.
What this means for employers:
- From 1 October 2025 businesses employing eligible workers in the community services sector in South Australia will be required to complete an online Employer Registration form to register within 28 days of commencement of the scheme.
- Employers will register their eligible workers via an Employer Portal between 1 October 2025 and 31 December 2025.
- Employers will need to complete and lodge their quarterly return forms online and make payment of any applicable levies. The first Employer Return will report for the quarter 1 October to 31 December and will be due for lodgement by 21 January 2026. Employers will be required to pay any applicable levies for the quarter by 21 January 2026.
- More details and resources will be made available soon to support you through this process.
What this means for workers:
- Your LSL will move with you, even if you change employers within the sector.
- You’ll start building LSL entitlements with SAPLSL from 1 October 2025.
More information, tools, and support will be released progressively in the lead-up to the 1 October start to help you understand what’s required and how to get ready.
Additional Information
The legislation introducing Portable LSL for the community services sector caps the employer levy at 3%. Early estimations suggested the levy could be between 1-2% - similar to the corresponding levies in other states and territories that offer a community services LSL scheme. The required professional actuarial analysis recommended a levy of 2.27% - higher than other jurisdictions because SA has a more generous LSL scheme than elsewhere. Unlike other states, where portable LSL is based on a 13-week entitlement after 15 years, South Australian workers are entitled to 13 weeks after 10 years.
The Board has reviewed the actuarial analysis and opted for a lower levy of 2.2%, which was viewed as the absolute minimum to support employers that are required to pay it, while enabling access to LSL for employees.
Board committed to supporting employers
We understand that many employers are already facing financial pressures, and introducing a new levy may feel like an added burden.
The Board has worked to minimise the impact on employers with a fair levy rate that funds portable LSL for their employees. The Board grappled with the recommended levy from the expert report and found a sustainable approach to reduce it from 2.27% to 2.2% - balancing fairness for employers with certainty for workers.
Employers are already required to pay for LSL, and many government funding streams include provision for LSL leave entitlements. It is also important to consider how the Portable LSL scheme provides stability and financial predictability in the long run, and to recognise that South Australia's LSL entitlements are more generous than those in other states and territories.
How was the levy set?
The levy rate reflects the actual cost of LSL in South Australia. Unlike other states, where portable LSL is based on a 13-week entitlement after 15 years, South Australian workers are entitled to 13 weeks after 10 years. This means the underlying accrual rate for LSL is 2.5% per year in SA, compared to just 1.67% per year in other states.
Simply put, South Australian workers accrue LSL faster than their counterparts in other parts of Australia. This means the cost of funding LSL is naturally higher in SA, which is reflected in the levy.
An external actuarial expert was engaged to determine the estimated cost of the scheme. Based on all current available information, the actuary assessed the minimum solvency position that the Board should target would be 110% of benefits vested in the scheme.
The recommendation from the actuary, on that basis of 110% solvency, was that the levy rate be set at 2.27%.
The Board grappled with the recommended levy and found a sustainable approach to reduce it from 2.27% to 2.2% - balancing fairness for employers with certainty for workers.
Under the legislation introducing the scheme, an actuary will conduct an annual review of the industry fund including the levy contribution to ensure it is set at the most appropriate level.
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