The Australian Capital Territory government has announced a 15-month pause on expanding its portable long service leave scheme to the hospitality, food, hairdressing, and beauty industries, citing economic pressures on local businesses. The expansion was originally scheduled to take effect on April 1.
ACT Business Minister Michael Pettersson said the delay was necessary because many businesses are struggling financially. 'Canberrans will know this by seeing many much-loved local hospitality businesses unfortunately ceasing,' he said. The scheme will now be introduced on July 1, 2026.
The portable long service leave scheme, introduced in 2010, allows workers in casual or insecure employment to accrue long service leave entitlements even when changing employers. It currently covers building and construction, contract cleaning, the community sector, and the security industry. Employers pay a levy on gross ordinary wages, and the government pays workers when they take leave.
Canberra restaurateur Ross McQuinn supports the scheme in principle, saying it encourages retention in the hospitality industry. However, he noted that the levy would have made it harder for businesses to survive given current economic conditions. 'It would certainly have pushed things to breaking point, I think, for a lot of people,' he said.
Industry groups have welcomed the pause. Canberra Business Chamber chief executive Greg Harford argued the scheme would drive significant costs for businesses, ultimately passed on to consumers, and questioned the logic of a portable scheme. 'That's not rewarding service to an employer, that's just a general entitlement,' he said.
The United Workers Union, which also welcomed the delay, supports the scheme. ACT branch secretary Lyndal Ryan said it recognises modern work environments and helps workers who lose their jobs when businesses close. McQuinn hopes the extra time will allow for input and potential changes to the scheme.
