"The Federal Government's announcement that it will progress legislation to provide relief to employers impacted by historical debts associated with the coal mining long service leave scheme is an extremely welcome development," said Innes Willox, Chief Executive of national employer association the Australian Industry Group.
"A payroll levy of 2.7% applies to employers covered by the scheme. However, historical levy debts have arisen due to uncertainty about whether organisations that provide maintenance and other services to coal mining companies are covered by the long service scheme and are subject to the levy.
"Greater clarity about the coverage of the scheme has been delivered through two recent judgments of the Full Federal Court: Hitachi Construction Machinery (Australia) Pty Ltd v Coal Mining Industry (Long Service Leave Funding) Corporation [2024] FCAFC 166 and Orica Australia Pty Ltd v Coal Mining Industry (Long Service Leave Funding) Corporation [2025] FCAFC 65.
"The relief will take the form of a repayment plan, including a debt waiver component. This is timely and welcome and given the pressures it has created will undoubtedly save many businesses and jobs.
"Employment and Workplace Relations Minister, Amanda Rishworth's announcement follows strong and prolonged representations by the Australian Industry Group on behalf of impacted businesses. We thank the Federal Government, including Ministers Burke, Watt and Rishworth, for their attention to the issue and recognition of the distress it was causing many businesses.
"The Australian Industry Group looks forward to playing a constructive role in the Government's consultation process during the development of the legislation to resolve this uncertainty," Mr Willox said.
