Community services scheme reduced levy rate
We’d like to share an important update regarding the Community Services Industry (CSI) portable long service leave scheme levy rate.
The Long Service Corporation (LSC) and the NSW Government have been working closely with sector peak bodies, employers and unions to implement the CSI scheme.
We recognise the financial pressures currently facing the sector and acknowledge the importance of providing appropriate support during this transition period.
We welcome the Government’s decision to provide immediate financial relief by reducing the levy rate to 1.3% for the first financial year (1 July 2025 to 30 June 2026). This measure is intended to ease the initial financial impact on employers as the scheme is established.
Key dates for the scheme
- Service returns open: 29 April 2026
- Service return period (covering 1 July 2025 to 31 March 2026): 29 April to 13 May 2026
To further support employers as they complete their first service returns and levy contributions through the new portal, the levy payment due date has been extended to 31 May 2026.
From the second financial year, the levy rate will return to 1.7%.
Throughout the first two years of implementation, LSC will continue to closely monitor and review the levy settings to ensure a smooth and effective transition for the sector.
The reduced levy rate does not change how service accrues or the value of leave that workers are entitled to claim. Portable long service leave entitlements are set under legislation and accrue based on a worker’s recognised service in the industry, not on the levy rate in a particular year. The levy funds the scheme collectively across the sector.
LSC is committed to working with employers to understand individual circumstances where genuine financial difficulties arise. While levy obligations remain payable under legislation, employers are encouraged to contact us early to discuss their situation and explore available options to help manage financial impacts and avoid compliance action.
