Social service sector win: $50m in savings due to reduction in Long Service Leave levy

MEDIA RELEASE

24 April 2026

The New South Wales Council of Social Service (NCOSS) has welcomed a temporary reduction in the Portable Long Service Leave (PLSL) levy, which will provide organisations in New South Wales with a funding surge of $50 million dollars.

The levy reduction – from 1.7 percent to 1.3 percent – will take effect until 30 June 2026.

NCOSS CEO, Cara Varian, described the sector as facing an incredibly challenging time as organisations are under pressure from rising costs, including insurance, energy bills, rent and fuel.

“Demand for services has reached unprecedented levels, so a reduction in the levy is welcome news for providers who are struggling to keep up with demand.

“This will mean that food banks are able to continue providing meals and hampers, mental health services can continue providing care, neighbourhood centres can remain open and homeless shelters are able to give people somewhere safe to sleep at night.

“While NCOSS fully supports the PLSL scheme and its role in protecting workers’ entitlements, dual cost-of-living and fuel security crises have added another layer of financial complexity for organisations to navigate.

“The last thing we want to see is organisations having to shut down because funding has to be diverted elsewhere instead of the critical frontline services that are needed,” Ms Varian concluded.

Media contact: Bron Matherson (Essential Media) 0438 844 765