ARTICLE
11 July 2022

Accounting for Portable Long Service Leave

MA
Moore Australia

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With the shift in numerous industries to short-term contracts, many states in Australia have introduced Portable LSL.
Australia Employment and HR

Whilst many of us are familiar with the concept of Long Service Leave (LSL), we may be less familiar with the concept of Portable LSL. With the shift in numerous industries to short-term contracts, many employees will never be able to work for the same company for the required number of years to be entitled to LSL.

Accordingly, many states in Australia have introduced Portable LSL. In particular industries that entitles employees to accrue LSL if they remain in that industry for the required time. These schemes typically operate in the private sector, with public sector employees often excluded or their portable LSL structured in a different way.

The industries covered varies by states, but include:

  • Building and construction
  • Coal mining
  • Community services
  • Contract cleaning
  • Security



Each scheme has its own unique features and requirements, but in principle each scheme is structured such that employers pay regular levies to a central authority based on the payroll of employees involved in the scheme. When an employee becomes eligible to take their LSL, depending on the arrangement, either the employer pays the employee their LSL entitlement and then recoups funds from the central authority or the authority pays the employee directly.

Accounting for these arrangements can be complex and needs to account for the substance of the arrangement. Particular complexities can arise around determining the amount receivable from the central authority.

Read our guide for more information.

This article is issued as general commentary - please contact us about your specific circumstances.

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