Does your business provide community services, contract cleaning services, NDIS, children’s services or security services?
Victoria has introduced a new Portable Long Service Benefits Scheme for workers in the community services, contract cleaning and security services industries commencing from 1 July 2019.
NDIS and children’s services were brought into the scheme from 1 January 2020.
This will enable workers in these industries to accrue long service leave entitlements based on time spent in their industry, rather than with a single employer.
Employers are required to register with the Portable Long Service Authority and register their eligible workers. These include casual, part-time or full-time workers, apprentices and trainees, and sole trader sub-contractors.
Employers are obligated to submit quarterly returns detailing hours worked and ordinary wages received by their eligible workers, any long service leave taken, and details of workers terminated during the period.
A levy ranging from 1.65% to 1.8% is calculated based on the time worked and ordinary wages paid, and this is payable by the employer on a quarterly basis within 14 days of submitting each return.
Employers may apply to the Authority for a reimbursement of long service leave payment made directly to a worker under the Long Service Leave Act 2018 (Vic) or a fair work instrument.
The Authority will reimburse employers for the period of service recorded with the Authority. For example, if the worker has worked for the employer for 8 years, but only has 6 months recorded with the Authority, the Authority will only reimburse the employer for the leave associated with that 6 months of service.
Reimbursements will not include superannuation, payroll tax or other HR on costs. These are met by the employer.
For more information, record keeping requirements, and to register, go to https://www.vic.gov.au/portable-long-service
Please contact your Davidsons team member or call our office on 03 5221 6399 or email at email@example.com for more assistance.
Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article.