Portable Long Service Leave Is Expanding in the ACT: What Beauty Businesses Need to Know

If you operate a clinic, salon or spa in the Australian Capital Territory (ACT), an important workplace change is on the horizon.

The ACT’s Portable Long Service Leave (PLSL) scheme is expanding to include the beauty services sector from 1 July 2026. While the expansion was originally scheduled earlier, it has been paused to give businesses more time to prepare — making now the ideal time to understand your obligations and plan ahead.

Which sectors are covered?

The expansion applies to the ACT “Services Industry” scheme, which will include:

• Hairdressing and beauty services
• Accommodation, food, beverage and hospitality services

This means many beauty businesses in the ACT will be captured under the scheme for the first time.

How the scheme works

Under the ACT Services Industry PLSL scheme, eligible workers accrue long service leave based on their total time working in the industry, not just with one employer.

Key points to be aware of:

• Workers generally become entitled to long service leave after 7 years of recorded industry service
• At that point, they are eligible for 6.06 weeks of long service leave
• In certain circumstances, accrued leave may be “cashed out” as a lump sum, such as when a worker leaves the industry entirely or experiences total incapacity
• Employees may accrue entitlements under both the ACT Long Service Leave Act 1976 and the portable scheme at the same time, with safeguards in place to prevent double dipping

Who is covered?

Workers are covered if they perform eligible services, or work that contributes to the delivery of those services (including incidental work).  The full list of eligible services is available on the ACT Leave website and should be reviewed carefully to determine which workers in your business are captured.

Employer obligations and key dates

The expanded scheme commences on 1 July 2026.

If you employ Eligible Workers in beauty services, you must:

• Register your business with the ACT Long Service Leave Authority by 30 June 2026
• Register all Eligible Workers
• Create and maintain Service Records, including reporting each worker’s service history and total gross ordinary wages per quarter
• Pay a levy (currently 1.07% of ordinary wages)
• Lodge quarterly returns at the same time as levy payments
  
  

The first quarterly return and levy payment is due by 31 October 2026.

Consequences of non-compliance

Failure to meet your obligations may result in:

• Financial penalties
  • Failure to register: up to 50 penalty units
  • Failure to submit returns on time: up to 20 penalty units
    
    
• Penalty interest on late levy payments
  • Current interest rate: 7.5%
    

At the time of writing, one penalty unit equates to $160 for individuals and $810 for corporations, meaning non-compliance can become costly very quickly.

What you should do now

While the scheme doesn’t commence until mid-2026, early preparation is strongly recommended. This includes:

• Auditing payroll systems and employment records
• Identifying which workers may be classified as Eligible Workers
• Ensuring your systems can support quarterly reporting and levy calculations

Support for our ACT ABIC members

If you’re an ABIC Clinic, Salon or Spa Member, support is available.

You can contact the ABIC HR Advisory Line on 1300 038 217 for assistance with understanding your obligations, reviewing your workforce arrangements, and preparing for compliance with the scheme.