New South Wales have joined Victoria, Queensland and the ACT in enacting a Portable Long Service Leave (PLSL) scheme. With the exception of Queensland, these schemes include the Community Services Sector.
In NSW, many Allied Health Business Owners are scratching their heads trying to work out whether they’re covered or not. The definition of who qualifies has been a little murky, and during a recent Long Service Leave Corporation (LSC) webinar, it became clear that even the regulators acknowledge there’s still work to be done to make the rules clearer.
Here’s what we know so far.
What is Portable Long Service Leave?
Portable Long Service Leave is a scheme that recognises the nature of work in industries where people move around a lot — often on short-term, part-time, or casual contracts. Traditionally, long service leave is tied to one employer, meaning workers who switch jobs often miss out on the entitlement altogether.
Under PLSL, instead of the employer holding the liability, employers pay into a central fund managed by the LSC. This fund then keeps track of each eligible worker’s service, and the worker can “take their service” with them if they move between registered employers within the same industry.
When a worker reaches the qualifying period, they can claim their long service leave payment directly from the fund, regardless of how many employers they’ve had along the way.
Which Employers Need to Register for Portable Long Service Leave?
Under the Community Services Sector (Portable Long Service Leave) Act 2024, employers must register if they:
“Employ one or more persons to do community service work in NSW, or supply a person through a labour hire arrangement to do community service work in NSW.”
That sounds straightforward — until you get to the bit about what counts as community service work.
The Act lists a range of activities (for example, disability services, aged care, community housing, domestic violence support, and similar) and includes a self-assessment tool to help employers determine whether they fall within scope.
However, many Allied Health providers — especially those operating private clinics — are still finding themselves in a grey area. Their work often overlaps with community service functions (especially in the NDIS or aged care spaces) but doesn’t fit neatly within the definitions used in the Act.
In other states, it’s clearer because eligibility is linked to specific industrial awards — but in NSW, it’s more about the nature of the work and the purpose of the organisation.
So What is a “Community Service”?
This is really the heart of the confusion.
The Act doesn’t explicitly define community service work beyond listing examples. Instead, it asks organisations to look at their core purpose and activities to decide if they’re delivering services that:
- Benefit or support people experiencing vulnerability or disadvantage, or
- Contribute to community wellbeing or inclusion.
That’s a broad brush, which makes the self-assessment process tricky. Many Allied Health businesses are not-for-profit in spirit, but for-profit in structure, and that’s where the uncertainty lies.
The best way to approach this at the moment is by a process of elimination — looking at whether your services, funding streams, and client base align with those described in the Act.
Where Do Allied Health Businesses Sit Within This?
This depends entirely on how government interprets “community services” in practice.
Because disability support is listed as a covered activity, businesses providing therapy under the NDIS might fall within scope — but whether this applies only to support work or also to clinical services (like speech pathology, OT, or psychology) is still up for debate.
It’s also possible that only part of a business could be captured. For example, a clinic might primarily deliver therapy (which may or may not be included) but also operate support coordination or community engagement programs, which could fall under the scheme.
Until there’s a clearer definition, Allied Health Owners should map out the different activities in their business and consider where overlaps might occur.
What Are the Considerations to Determine Eligibility?
If you’re unsure, start with the online self-assessment tool provided by the LSC. It asks questions about your business purpose, funding, clients, and types of services provided.
Be prepared, though — the tool won’t give a definitive yes or no. You may need to:
- Review your governing documents (e.g., constitution, mission statement, ABN registration details).
- Check whether your services are funded by government programs such as the NDIS or My Aged Care.
- Look at how your services are described — for example, whether you refer to “therapy”, “treatment”, or “support”.
If you’re still unsure, it’s worth seeking advice from the Long Service Leave Corporation directly, or getting a legal opinion, especially if you employ a mix of clinical and support staff.
The Risks
The risks here are both financial and legal.
If your business is required to register and doesn’t, you could face back payments, penalties, and interest once the LSC audits your sector. On the other hand, if you register unnecessarily, you might be paying into a fund for staff who don’t actually fall under the scheme.
It’s also worth noting that incorrectly classifying workers (either in or out of the scheme) can have industrial relations implications, particularly if disputes arise later about entitlements.
Given the uncertainty, the safest approach is to keep detailed records of your decision-making process — how you assessed eligibility, what advice you sought, and why you made the determination you did.
Where to From Here?
For now, the advice from the LSC is to consider registering “just in case” — especially if your services are disability- or community-based. This helps you stay on the safe side while the definitions are being refined.
The Corporation has acknowledged the confusion and is working on clearer guidance specifically for Allied Health and other private service providers.
In the meantime, Allied Health businesses should:
- Complete the self-assessment and document their rationale.
- Keep up to date with future communications from the LSC.
- Talk to professional associations (such as SPA, OTA, or APA) about sector-specific interpretations.
- Seek legal or HR advice if you employ staff across different service types.
This is an evolving space — but the key takeaway is that the conversation is happening, and Allied Health’s role in community services is finally being recognised, even if the rules haven’t quite caught up yet.
What Next?
Take our quick, 5-minute Allied Health Biz Quiz today to get a personalised insights and understand how the new rules could impact your business. It’s fast, easy, and will give you the clarity you need. Don’t leave it to chance. Get informed today!
