Summary

• The South Australian Portable Long Service Leave Scheme for the community services sector commenced on 1 October 2025.
• From 1 October 2025, employers must register with the scheme, report eligible workers’ service and wages on a quarterly basis and pay a 2.2% levy on total wages.
• The first employer return is due by 21 January 2026 for the quarter ending December 2025.
• Non-compliance can attract penalties of up to $10,000 per contravention.

What employers need to know

Long service leave is a statutory entitlement that allows employees to take extended paid leave after a period of continuous service with the same employer.

However, in industries such as construction and community services, where short-term contracts and workforce mobility are common, traditional long service leave arrangements often disadvantage employees who move frequently between employers.

Portable long service leave (PLSL) addresses this issue by allowing eligible workers to accrue service across multiple employers within the same industry. Employers contribute to an industry-wide fund via a levy, and the fund pays employees when they become entitled to long service leave.

PLSL in South Australia – Construction industry

South Australia has operated a PLSL scheme in the construction industry for many years under the Construction Industry Long Service Leave Act 1987 (SA) (CILSL Act).

Under this scheme:

• eligible construction workers accrue service based on time in the industry, not just with one employer;
• employers must register with the Portable Long Service Leave Board and report service and wages quarterly; and
• after accruing 2,600 service days (approximately 10 years full time), employees become entitled to 13 weeks of long service leave, paid by the Board.

Recent changes – Community services sector

The Portable Long Service Leave Act 2024 (SA) (PLSL Act) extends PLSL to the community services sector from 1 October 2025.

Who is covered?

To qualify, employees must fall within one of the following two streams:

1. Stream 1: workers providing community services; or
2. Stream 2: workers supporting the delivery of community services.

To qualify for Stream 1, employees must:

• be engaged on a full-time, part-time, or casual basis;
• perform duties covered by either:
  • the Social, Community, Home Care and Disability Services Industry Award 2010; or
  • the Aboriginal Legal Rights Movement Award 2016; AND
• deliver or support community services as defined in Schedule 2 of the PLSL Act.

To qualify for Stream 1, workers do not need to be paid under the applicable Award, and employees covered by Enterprise Agreements which are underpinned by one of these Awards are also captured.

Schedule 2 services include (among others):

• disability support;
• homelessness services;
• youth justice;
• family and domestic violence services;
• Aboriginal and Torres Strait Islander services; and
• community legal services.

To qualify for Stream 2 employees must spend at least 50% of their time supporting a worker who provides community services under the criteria above.

Employees in roles such as administration, HR, payroll, finance, or management may qualify under Stream 2 if at least 50% of their duties support the provision of community services.

Employers may also voluntarily register workers who do not meet these criteria. If they do, those workers are eligible for the duration of their time in that role and must be reported for accordingly.

Employer obligations

From 1 October 2025, employers must:

• register with the scheme;
• report eligible workers’ service and wages on a quarterly basis; and
• pay a 2.2% levy on total wages.

The first employer return is due by 21 January 2026 for the quarter ending December 2025.

Non-compliance can attract penalties of up to $10,000 per contravention.

Practical steps for employers

Affected employers should act now. Key steps include:

• Review coverage – Identify which employees fall within the scheme (eligibility is broad).
• Update payroll systems – Ensure systems can track and report service and wages quarterly.
• Strengthen record-keeping – Maintain contracts, job descriptions, timesheets, and payslips to support reporting obligations.
• Manage liabilities – Understand transitional arrangements and current long service leave entitlements under the State system.
• Assign responsibility – Nominate a compliance contact within your organisation.
• Communicate with staff – Inform managers and employees about the new scheme to avoid confusion.

With the scheme now in effect, employers should take immediate steps to ensure compliance and minimise the risk of penalties.

Please contact us for advice.

This article was written by Clare Raimondo, Partner, and Emma Campbell, Senior Associate.