Released 06/04/2018
Employer payments that support the portable long service scheme leave in the ACT will be reduced, due to the strong financial position of the scheme.
Portable long service leave allows workers in particular industries to carry their leave from employer to employer as long as they stay in the industry. This recognises that there are some industries in which workers regularly change employer while remaining in the industry.
Portable long service leave supports Canberrans working in the community sector, contract cleaning, building and construction and security to go after the jobs they really want, without giving up their progress towards well-deserved long service leave.
Under the Long Service Leave (Portable Schemes) Act 2009, the ACT Long Service Leave Authority’s Governing Board is required to assess the financial position of the scheme, including the appropriateness of the levy rate paid by employers, at least every three years.
The Board has determined that there is scope for a reduction in the levy rate for each of the covered industries from 1 April 2018, thanks to solid investment returns, strong revenue collection and continued efficiencies in the administration of the scheme.
This levy reduction will benefit the employers who pay into the portable long service leave scheme, without compromising the leave entitlements of their valued workers.
Portable long service leave rewards employees in these industries and benefits employers who are better able to attract and retain talented, experienced workers.
Effective from 1 April 2018, the employer levy rates will be reduced as follows:
- Building and Construction – from 2.5% to 2.1%
- Contract Cleaning – from 1.6% to 1.2%
- Community Sector – from 1.6% to 1.2%
- Security – from 1.47% to 1.07%
The next review of the scheme is due in 2020, at which time the Governing Board will reassess the levy rate.
- Statement ends -
Rachel Stephen-Smith, MLA | Media Releases