Canberra's portable long service leave expansion delayed

abc.net.au

The expansion of Canberra's portable long service leave scheme has been delayed due to the current cost-of-living crisis. This scheme helps casual and insecure workers earn long service leave benefits, even if they change jobs. It was set to expand to the hospitality, beauty, and food sectors on April 1. Canberra restaurateur Ross McQuinn supports the idea but expressed concerns about timing. He believes the new levy would have made it harder for many businesses to survive during tough economic conditions. Consumers are being careful with their spending, especially on non-essential items like dining out. The portable long service leave scheme began in 2010, covering sectors like construction and cleaning. Under this plan, businesses pay a levy, which allows workers to access their leave benefits after working in the industry for a certain period. ACT Business Minister Michael Pettersson announced a 15-month pause on the expansion after hearing concerns from local businesses. He stated that while the scheme benefits workers and employers, it cannot be introduced during challenging financial times. Many local hospitality businesses are struggling, and Pettersson is optimistic that the situation will improve by July 2026. Greg Harford from the Canberra Business Chamber also welcomed the delay, arguing that the added costs would ultimately increase prices for consumers. He believes the scheme should reward long service to one employer rather than provide general benefits to all workers. In contrast, the United Workers Union supports the idea of the scheme. Their representatives argue that modern work often involves changing jobs, making it important to recognize long service in this context. They believe the scheme could help workers, especially those affected by job losses. Overall, while there are differing opinions on the scheme's benefits, the delay allows time for discussions and potential adjustments to address business concerns.


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