The reduction is expected to save the sector approximately $50 million this financial year, with organisations across the Wollongong region benefiting from an average estimated saving of $23,000 per organisation.
The move will provide vital budget relief to local community service organisations, including not-for-profit disability providers and social service organisations, helping them reinvest in frontline services and support for the region.
Minister for Industrial Relations and Minister for Workplace Health and Safety Sophie Cotsis and the Minister for Planning and Public Space and local Wollongong MP, Paul Scully, met with local disability providers at a roundtable today to discuss the impact of the savings and hear directly from the sector about the government's workers compensation reforms.
The Illawarra Disability Alliance is an alliance of disability employers across the Illawarra region, with its largest provider, Greenacres Disability Services, employing over 200 support workers who now benefit from access to portable long service leave.
The Minns Labor Government introduced the scheme to support around 200,000 community service workers across NSW, a workforce that includes a significant proportion of women, ensuring they can access long service leave regardless of where they work within the sector.
The reform aims to encourage retention in the sector by reducing burnout and fatigue of community sector workers, as well as tackling recruitment and retention within the sector.
The portable long service scheme was the subject of extensive consultation with employers, peak organisations, and workers. The Government acknowledges the significant work of the Australian Services Union, National Disability Services (NDS), NSW Council of Social Service (NCOSS), and other non-government sector organisations in designing this scheme.
The levy relief has been determined in accordance with actuarial advice to ensure there is sufficient funding to meet workers' future leave entitlements and ensure the long-term viability of the scheme.
The Government will also monitor and review the levy settings over the first two years of the scheme with the scheme's long-term viability being the key priority.
Minister for Industrial Relations and Work Health and Safety Sophie Cotsis said:
"The NSW government has listened closely to the community services sector and understands the financial pressures organisations are facing, which is why we are delivering immediate financial relief during a challenging economic time.
"The disability sector is one of the largest employers in the Wollongong region and provides essential support to some of the most vulnerable people in our community.
"At the heart of these services are the organisations and workers delivering them, and these savings will help ensure they can continue their vital work.
"This new levy setting strikes the right balance between providing relief now and protecting the long-term sustainability and integrity of the scheme, ensuring a strong and reliable system for community service workers.
"We've listened to workers across the sector, including the women who make up around 75 per cent of the workforce, who have been calling for reforms that help reduce burnout and improve conditions.
"This approach also supports recruitment and retention by giving workers confidence that their long service leave entitlements will follow them from job to job, making it easier to build a long-term career in the sector."
Member for Wollongong Paul Scully said:
"The Minns Labor government understands the financial pressure facing community service organisations across the Illawarra right now.
"This decision will help ease that burden while protecting workers' long service leave entitlements into the future.
"A stronger, more stable workforce here in Wollongong and across the Illawarra means better support for local communities."
Greenacres Disability Services CEO Karen Burdett said:
"The temporary reduction in the Portable Long Service Leave levy from 1.7% to 1.3% is a welcome reprieve for Greenacres and other community services providers across our region. This is a meaningful saving in real dollar terms that enables organisations to redirect resources where they matter most, to the people we support.
"Portable Long Service Leave for staff working across community services helps to recognise the dedication and mobility of this sector of the workforce. Combined, Illawarra Disability Alliance member organisations represent over 1,000 employees in the Illawarra/Shoalhaven region, and this reduction will have a real impact within sector."
Executive Director of the NSW Long Service Corporation Lauren Nagle said:
"This phased levy approach provides immediate relief to employers while safeguarding the integrity and viability of the scheme. Importantly, it will not impact workers' entitlements, including how service accrues or the value of leave they are entitled to claim."
"Our teams will continuously monitor and review the levy settings over the first two years to ensure employers are meeting their obligations and to support a smooth transition into the Scheme."
