From 1 April 2025, portable long service leave coverage in the ACT will extend to eligible workers in the services industry with the commencement of the Services Industry Scheme. The scheme incorporates the existing Contract Cleaning Industry Scheme and new industries of hairdressing and beauty services and accommodation and food services, including hospitality services. Scheme registration for covered employers and workers is compulsory.

This letter provides essential information to help you prepare for the commencement of the scheme.

Who is ACT Leave?

ACT Leave is an ACT Government Statutory Authority, established under the Long Service Leave (Portable Schemes) Act 2009, that administers portable long service leave in the ACT.

What is portable long service leave?

The Long Service Leave (Portable Schemes) Act 2009 allows employees to accrue long service leave entitlements, even if they work for more than one employer within the same covered industry in the ACT. Portable long service leave is an important employee entitlement, which affords business owners the opportunity to be recognised as employers of choice for providing fair access to portable long service leave, while enhancing their reputation and fostering a positive workplace culture.

Do I have to register my business for portable long service leave?

It is a legislative requirement that employers who operate a business in the ACT and employ eligible employees, register with ACT Leave under the new Services Industry Scheme from 1 April 2025. If your business provides relevant services in the ACT, you must register with us even if you are located interstate. Once registered, employers will receive a certificate of registration from ACT Leave.

You will also need to register your eligible employees for the new Services Industry Scheme by including them in your first quarterly return, which you will need to submit to us in July 2025.

What is considered eligible work in the Services Industry Scheme?

Employers and workers will be covered under the Services Industry Scheme if they operate within the:

• contract cleaning industry
• hairdressing and beauty services, within the meaning of the ANZSIC, Division S, Class 9511
• accommodation and food services, including hospitality services, within the meaning of the ANZSIC, Division H.
• Visit the Services Industry page on our website actleave.act.gov.au/services for the full list of services covered under the Services Industry Scheme.

How is portable long service leave funded?

Portable long service leave for the Services Industry Scheme will be funded through a levy that is charged to all covered employers, payable to ACT Leave each quarter. The levy rate for the Services Industry Scheme is 1.07%.

Each quarter, employers provide a report to ACT Leave, known as a quarterly return, listing the employees who worked for them in that return period, and the ordinary remuneration paid during the return period. The levy payable is calculated by applying the levy rate to the gross ordinary wages recorded on the quarterly return. The first return will be due in July 2025.

Apprentice wages (except for Australian School-based Apprentices) are exempt from the levy calculation as long as a copy of their training plan has been provided to ACT Leave.

Contractors and Working Directors can choose to record service as a voluntary member and accrue a benefit, which will be made as a payment rather than leave when an entitlement is reached.

What will my employees be entitled to?

• Your employees will be entitled to 6.06weeks of portable long service leave after 7 years of recorded service in the services industry. They will continue to accrue 0.867 weeks of leave for every year thereafter.

What do I need to do?

• Check if you are required to register your business for the Services Industry Scheme by completing the Services Scheme Eligibility Assessment Tool on the Services Industry page on our website actleave.act.gov.au/services
• There will be a pre-registration period starting in December 2024 to provide opportunity for you to pre-register your business with ACT Leave ahead of the scheme’s commencement. Visit our website from December to complete the pre-registration form online. All eligible employers must register when the scheme commences on 1 April 2025.
• If you are an eligible employer, let your employees know that they will be eligible to begin accruing portable long service leave from 1 April 2025, and that they will receive information about their registration with ACT Leave in August 2025 after the first reporting period ends. Encourage them to visit our website for more information about their entitlements.
• Visit the Services Industry page on the ACT Leave website actleave.act.gov.au/services,to find out more about portable long service leave and the Services Industry Scheme.

Need more information?

We understand that the introduction of the Services Industry Scheme means many employers and workers will be interacting with portable long service leave for the first time. We’re here to help and we encourage you to reach out to us if you need assistance to properly understand the scheme.

To access our step-by-step guides, FAQs and videos visit actleave.act.gov.au, email enquiry@actleave.act.gov.au or call 02 6247 3900 between 8:30am and 4:30pm, Monday–Friday to speak to a client service representative.

This is a copy of a letter issued to potential services industry employers on 28 August 2024