Frequently asked questions about Portable Long Service Leave.
What is the difference between long service leave and portable long service leave?
Australia, most employees accrue long service leave under the Long Service Leave Act 1987 and must be employed with one employer for ten years to be entitled to long service leave (or seven years for a pro-rata
payment). The portable scheme was
introduced following negotiations between employers and unions in the 1970's,
as due to the nature of the construction industry, workers performing building, electrical or metal trades work tended to change
employers more often and couldn't stay with one employer long enough to accrue long
service leave. The portable scheme
allows workers to accrue long service leave benefits for work covered by the
scheme, regardless of the number of employers they have worked for.
The scheme is funded by a levy paid by employers based on 2.15% of their worker's remuneration (excluding apprentices who are levy free). This money is invested and used to pay long service leave entitlements and scheme administration costs.
What is the current levy rate?
The current levy
rate (applicable from 1 July 2016) is 2.15% of worker's remuneration.
What is remuneration?
When completing Employer Returns,
you must calculate the levy payable based on the total remuneration earned by
each of your workers during the return period.
Please refer to How to complete Employer Returns to see what to include and exclude in remuneration.
Are the levies tax deductible?
Yes, levies paid
by employers are tax deductible in the financial year they are paid.
Can the levies be deducted from my employee's wage?
Can an employee who has been paid long service leave by Portable Long Service Leave work during their scheduled leave?
No, long service
leave is time for employees to take a break from work, relax and recharge, so
if an employee has been paid to take long service leave by Portable Long Service Leave, they cannot work during their
nominated leave period. Penalties
apply. If you urgently need to recall
your employee due to an unexpected issue, please contact us.
Can you provide me with a report of our workers current long service leave entitlements?
You can login anytime to view the entitlement of current employees.
I have been asked to provide a certificate of currency. Can you assist?
Please contact us so we can issue a
letter confirming your registration with the scheme.
How do I make levy payments?
method of payment is BPAY, although Electronic Funds Transfers and cheques are
accepted. Payment reference details are
shown on your employer return. Please
note we do not currently accept payment via credit card.
Are working directors required to register with the scheme?
directors are not required to register with the scheme. If the director wishes, they can join our
voluntary working director scheme.
Working directors cannot be registered with the scheme as an normal employee.
I have a new employee, how do I register them with Portable Long Service Leave?
Please add them as
a new worker on your next Employer Return.
What happens if one of my employees transfers to or from a role that requires registration in the scheme?
My worker no longer performs work covered by the scheme and has not accrued 1,820 days to be eligible for a pro-rata payment. What happens to the levies paid into the scheme?
investment earnings covers long service leave payments as well as
scheme administrative costs. If a worker
does not accrue 1,820 service days, they are not entitled to a payment. We have no discretion in this matter.
How does my employee apply for a payment?
Your worker will need to complete Part 1 of the application form and ask you to complete Part 2.