Shadow Minister for Business Leanne Castley has raised alarm about the Long Service Leave (Portable Schemes) Amendment Bill 2022 and the impact it would have on ACT small businesses should it pass through the Legislative Assembly.

The Bill, introduced to the ACT Legislative Assembly last year would force hairdressers, beauticians and accommodation and food service businesses to pay long service leave entitlements to the government years before employees will receive any benefit, if at all.

Ms Castley, who is also a part of the Standing Committee on Economy and Gender and Economic Equality inquiring into the Bill issued a dissenting report recommending the Bill not pass.

“This Bill will impose additional direct financial costs and substantial administrative burdens on Canberra small businesses,” Ms Castley said.

The complete list of businesses that will be impacted are:
Barbers, beauty, electrolysis, hairdressing, make-up, nail services, skin care and tanning services, accommodation, food services covering cafes, restaurants, takeaway food, pubs, bars and clubs.

“There has been no apparent regulatory impact assessment or study to support the Bill or rigorous analysis of its benefits to employees or the economy.

"The accepted purpose of long service leave is to reward loyal employees and to discourage staff turnover.

“The ACT Labor-Greens government has also not explained what will happen to the money invested from quarterly long service leave payments for the large number of employees who won’t stay in the industry long enough to qualify or who transfer to different occupations,” Ms Castley concluded.