What you need to do as a self-employed contractor in the community services industry
Learn about the community services industry portable long service leave scheme and your obligations if you are a self-employed contractor in NSW.
Self-employed contractor eligibility
Self-employed contractors performing community service work can register for the community services industry portable long service leave scheme (the scheme).
Once you have 7 years of recorded service, you can apply for a long service payment.
You will need to:
- register with the Long Service Corporation (LSC)
- submit a service return every 3 months
- pay a quarterly levy contribution
- keep accurate records.
Scheme registration is not mandatory for self-employed contractors.
If you employ people to perform community service work, you must register as an employer and include all eligible workers in your service returns. Read more about:
Deciding if you are an worker or a contractor
You should consider all of your working arrangements including how you’re paid and who provides your work equipment.
If you are unsure about your employment status contact Australian Taxation Office or Fair Work Ombudsman.
How to register as a worker or employer
Register as a worker through our Worker Portal.
Register as an employer through our Employer Portal.
Moving between working and contracting
If you are already registered with the scheme as a worker by an employer, you have the option to:
- stay in the scheme and lodge contractor returns and pay levies
- stay in the scheme and choose not to lodge contractor returns or pay levies. In doing so, you would enter a break in service period for up to 4 years
- voluntarily cancel the registration or choose to unregister (opt-out) of the scheme.
Claiming long service leave
When you claim long service leave as a contractor, the amount you'll receive is the total of:
- levies paid by you, and
- interest at the rate determined by LSC.
Your payment for long service is considered income and will be subject to Withholding Tax reported by LSC.
Interest rate calculations
The interest rate is calculated at the end of each financial year for the previous year and takes into account the administration expenses of LSC
The interest must be at least 75% of the rate of interest earned by LSC on the fund.
Your obligations
Service returns
Service returns must include:
- number of days or part-days worked during the period
- the total ordinary payment for this work.
Keeping service records
Written service records must include:
- descriptions of the community service work performed
- when you worked and for whom
- your ordinary remuneration for each return period
- the number of days you worked in each return period.
Service credits
You’re allocated a service day credit for each calendar day you:
- are engaged in eligible work during a return period, or
- have reported being on leave without pay or receiving payments from government-paid parental leave or insurer-paid workers compensation.
Your service credits are tallied and are used to calculate your total long service leave.
You must keep these written records for 7 years after the day the record is made.
Foundation worker bonus
Self-employed contractors who opt in to the scheme and were doing paid community service work in the first 6 months of the scheme's commencement are eligible for foundation worker bonus.
Learn more about the foundation worker bonus.
Work in other states or territories
LSC covers community service work you do in NSW.
Victoria, ACT, Queensland and South Australia have similar portable long service schemes for the community services industry.
Learn more about work outside NSW.
Breaks in service
You do not have to stay in the community services sector to maintain your service record. You can have a break from the industry for up to 4 years without affecting your entitlements.