Long Service Leave Decision Welcomed by Business Chamber

The Canberra Business Chamber has strongly welcomed the decision by ACT Business Minister Michael Pettersson to delay the expansion of the “Portable Long Service Leave” scheme by 15 months.

“The Chamber, along with other industry bodies, has been advocating against the plan for some time, and we are delighted that Minister Pettersson has made the right call to delay the expansion of the scheme,” Greg Harford, Canberra Business Chamber Chief Executive said today. “Employees in the food, hospitality, accommodation, hair and beauty sectors are already covered by Long Service Leave requirements, but the Government had planned to make this leave ‘portable’ and fund it through what amounted to a tax on wages in the sector.

“The proposal was bad policy and, with 11 per cent of hospitality businesses nationally at risk of closure, was coming into effect at almost the worst possible time for the services sector. It would have been administratively burdensome for businesses, inflated the costs of doing business, and almost certainly would have meant consumers were paying more for coffee, food and haircuts. Additionally, given the transient nature of the industry, the majority of employees would never have benefited from the scheme, while the ACT Government pocketed the proceeds.

“The Chamber supports the concept of long service leave, but stopping the expansion of the ‘portable’ scheme was a key element in the Chamber’s pre-election Vision for Business. We are really pleased that the Minister has listened to the concerns of industry and opted to delay the introduction of the scheme. This is a good policy decision and will be welcomed by many. However, we do think a complete review of the proposal is necessary to ensure that it will not lead to unanticipated poor outcomes for customers and the sectors concerned”.