Victorian NDIS providers carry a payroll obligation that many interstate templates and new business guides miss: the portable long service leave scheme. If you employ disability support workers in Victoria, you must register with the Portable Long Service Authority, report your workers’ hours every quarter and pay a levy on their wages. This guide explains who is covered, what it costs and how to stay compliant.
What the scheme does
Traditional long service leave rewards years with one employer. Community services workers often move between providers, so they rarely reached the qualifying period. Victoria’s portable scheme lets workers build up long service benefits based on their total service in the sector, regardless of how many employers they work for. Employers fund the scheme through a levy, and the Authority pays the benefit directly to the worker when they claim.
Who is covered
- The scheme covers three sectors: community services, contract cleaning and security
- Community services employers have been required to register since 1 July 2019, and providers of NDIS-funded supports and children’s services since 1 January 2020
- Employees covered by the relevant awards must be included, which for most NDIS providers means everyone paid under the SCHADS Award, including administration and finance staff covered by that award
- Self managed NDIS participants who directly employ their own workers register as employers too
- Sole traders cannot register themselves in the community services scheme
What it costs
| Sector | Levy |
|---|---|
| Community services (including NDIS providers) | 1.65% of each worker’s ordinary pay |
| Contract cleaning | 1.80% |
| Security | 1.80% |
For a provider with $1 million a year of ordinary pay for covered workers, that is $16,500 a year. It needs to be built into your pricing and cash flow alongside super, WorkCover and payroll tax. Unlike super, the levy is not paid to the worker’s fund; it is paid to the Authority.
Quarterly returns
Registered employers lodge a return each quarter, in October, January, April and July, reporting each covered worker and the hours and ordinary pay for the quarter, and pay the levy invoiced on that return. The hours you report are what the worker’s entitlement is built from, so errors directly affect your staff.
What workers receive
After 7 years of recognised service in the sector, a community services worker can claim their portable long service benefit. The entitlement accrues at 1 week for every 60 weeks of recorded work. The Authority pays it based on the worker’s ordinary pay at the time they claim. Workers can check their balance through the Authority’s worker portal.
Interaction with enterprise agreements
If an enterprise agreement or contract gives better long service leave than the scheme, the employer still participates in the scheme and covers the difference. At seven years the worker chooses between the portable benefit and the agreement’s entitlement, and if they forgo the portable benefit, the employer can seek reimbursement from the Authority for the duplicated period.
Common mistakes
- Not registering at all, often because the business started after 2020 and nobody mentioned it
- Reporting only direct support staff and leaving out other employees covered by the award
- Missing casual workers, who are covered
- Reporting total pay, including overtime and allowances, instead of ordinary pay
- Leaving the levy out of pricing, so it erodes margin on every hour delivered
Frequently asked questions
Are contractors covered?
The scheme is built around employees. If your “contractors” are in substance employees, they are likely to be covered, along with super, award and WorkCover obligations.
Is the levy tax deductible?
Yes. It is a business expense of the employer.
We are an NDIS provider in NSW too. Is it the same?
No. Each state runs its own scheme with different rules and rates. This guide covers Victoria only.
NDIS payroll support in Melbourne’s west
Kennedy Tax & Business Services runs payroll for NDIS providers, including SCHADS award costing, payday super, WorkCover and portable long service leave returns. See our payroll management and NDIS financial services, read how to start an NDIS business, or contact us.
This article is general information only and does not take into account your circumstances. Levy rates and rules are set by the Victorian Portable Long Service Authority and can change; confirm current requirements with the Authority on 1800 517 158.
