The Palaszczuk Government has passed legislation to introduce a portable long service leave scheme for workers in the community services industry. This bill was delayed due to the COVID-19 pandemic.
The exact start date of this scheme is still unknown, but we expect that it will start later in the year (and not backdated from 1 July 2020).
The recent media release provides some more detail.
The scheme works by employers registering and providing a ‘return’ to QLeave about the service and earnings of the workers covered by the scheme for each return period, then paying a levy based on the earnings reported.
The levy rate is proposed to be 1.35 per cent of a worker’s gross ordinary wage, lower than the 1.67 per cent average employers currently have to make provision for and will be subject to review at least every two years.
The proposal is for organisations operating in the following sectors (but not limited to):
1. From the inception date of the scheme (yet to be confirmed), community services organisations will pay employees long service leave to Qleave – not just simply accrue long service leave. This will have a cash impact on the organisation, and your 2020/21 financial year budgets.
2. It is expected that LSL already accrued will stay as a liability on the employer’s balance sheet for LSL accrued up to the inception date (not paid as a lump sum to Q Leave); but after this, no further LSL will be accrued as a liability on your balance sheet (it will be paid to Q Leave as it is accrued by employees).
If you are a Community Organisation that may be impacted and need assistance understanding the potential financial impact, please contact us for a free consultation.
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