Each Australian State/Territory has a statutory body which administers Portable Long Service Leave for workers in industries where workers are less likely to stay employed with a single employer for long enough to access LSL. In Queensland QLeave (www.qleave.com.au) administers the scheme for workers in the Building & Construction, and Cleaning industries.
In June the QLD Government passed legislation extending the scheme to cover workers in the Community Services industry (approximately 45,000 Full-time, Part-time, and Casual workers across the state). The following business types are included in the scheme:
- An entity established for/with the purposes (including the provision) of community services that engages an individual;
- A self-employed individual who provides community services
- A provider of labour hire services that supplies an entity in (1) or (2) with an individual to perform community services work for the entity;
- An entity prescribed by regulation.
Commonwealth, State and Local Government organisations and any entity prescribed by regulation are excluded from the scheme.
What services are defined as Community Services?
- Aboriginal and Torres Strait Islander community services
- Accommodation support services
- Advocacy services
- Alcohol and other drug support services
- Child safety and support
- Community development services
- Community education services
- Community legal services
- Counselling services
- Disability emergency response services
- Disability support services
- Employment services
- Family and domestic violence services
- Financial counselling services
- Foster care and out-of-home care services
- Home and community care services
- Homelessness support services
- Lesbian, gay, bisexual, transgender, intersex or queer services
- Mental health services
- Migrant and multicultural support services
- Offenders transitioning services
- Respite services
- Seniors community support services
- Social housing services
- Violence prevention services
- Women’s services
- Youth justice services
- Youth support services.
General health services, childcare and aged care are excluded from the scheme.
What are our obligations?
If your business is included in the scheme, you will need to:
- Once the scheme commencement date is announced, Register with QLeave within 28 days of becoming an employer (a penalty will apply if this is not done on time – maximum 40 penalty units, or $5,338).
- Lodge a quarterly return to QLeave within 14 days of end of quarter, & make payment of the levy.
- Maintain a record of all workers for six years (Personal details, Worker registration number, employment commencement and termination dates, Wages paid and Leave taken).
How is the Levy calculated?
The levy is expected to be set at 1.35% of Ordinary Wages paid to employees (lodged and paid quarterly). This includes:
- Gross salary (before salary sacrifice amounts)
- Penalty rates
- Allowances (except those paid for expenses incurred for motor vehicles / other equipment)
- Deductions from gross wages (other than salary sacrifice).
Commencement date and many of the operational details for the scheme has not yet been announced. As soon as they are, we’ll post an update.
If you’re uncertain whether your business needs to register for the scheme, we can help – contact us here.