News

Upcoming change to the Contract Cleaning Scheme

2 September 2024

An image of a female cleaner smiling and holding a bucket of cleaning supplies

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.

Once the scheme commences, the Contract Cleaning Industry Scheme will no longer exist as a separate scheme and will instead be incorporated into the new Services Industry Scheme, along with the new industries of hairdressing and beauty services and accommodation and food services, including hospitality services. Visit the Services Industry page on the ACT Leave website actleave.act.gov.au/services, to find out more about the new Services Industry Scheme.

As an employer in the contract cleaning industry, no action is required from you, however, we want to keep you informed about the new scheme and answer any questions you may have.

Why is contract cleaning moving into the Services Industry Scheme?

On 29 March 2023, the ACT Legislative Assembly passed the Long Service Leave (Portable Schemes) Amendment Act 2023 which expands portable long service leave schemes in the ACT to additional industries, providing more workers with the valuable benefits of portable long service leave. Contract Cleaning is moving into this new scheme because it’s a service industry, and because it will allow greater flexibility for workers to transition between different roles within the industry.

Do I have to re-register my business and employees with ACT Leave?

Employers and their employees already registered in the Contract Cleaning Industry Scheme will be moved over to the new Services Industry Scheme automatically when the scheme commences on 1 April 2025—you will not need to do anything.

Processes will remain unchanged through the employer and worker portals.

How will this affect my employees?

Nothing will change for your employees, other than their registration changing from the Contract Cleaning Industry Scheme to the Services Industry Scheme.

Service recorded for current contract cleaning workers will move over into the new scheme automatically with them.

Entitlements will remain the same at 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.

Interstate service for work within the Contract Cleaning Industry will also still be recognised through our current reciprocal agreements with NSW and Queensland. For questions about portable long service leave in other states and territories, contact the provider in the relevant jurisdiction.

How is the new scheme funded?

The new scheme is funded the same way as the existing Contract Cleaning Industry Scheme. Employers are required to pay a levy to ACT Leave each quarter. The levy payable is calculated by applying the levy rate to the gross ordinary wages recorded on the quarterly return. The levy rate for the Services Industry Scheme is 1.07%.

Need more information?

We’re here if you need us. 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 an email issued to current contract cleaning employers on 29 September 2024. 

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