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ForestT(Newbie)Newbie
6 June 2025

We have employees working in the NSW Community Services industry, which will be covered by a portable long service leave scheme from 1 July 2025.

I understand that payments of long service leave from the new scheme will not attract super if paid by the Corporation, but will there be an obligation to add super to payments of long service leave if the employer makes the initial payment and seeks reimbursement from the scheme?

Thanks

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PayrollDeanne(Taxicorn)Taxicorn
6 June 2025

Hiya @ForestT 👋


As per the ATO ID 2005/33 the two reasons that LSL paid by a portable LSL scheme to an employee is not OTE are:

  1. there is no employee/employer relationship between the worker entitlement fund and the individual receiving the long service leave payments, and
  2. the employer is not making, or is liable to make the payments to the individual.

If the employer makes a payment of LSL to their employee, it is OTE, however, the portable LSL scheme wouldn't be liable, so you couldn't invoice them for the SG that you pay.


Deanne

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