The DEPUTY PRESIDENT (Ms Abigail Boyd): I welcome and acknowledge in the gallery officials from the Australian Services Union NSW and ACT, including Secretary Angus McFarland and Helen Westwood, a former member of this place. They are most welcome.

The Hon. TARA MORIARTY (Minister for Agriculture, Minister for Regional New South Wales, and Minister for Western New South Wales) (14:04): On behalf of the Hon. Daniel Mookhey: I move:

That this bill be now read a second time.

I am proud to introduce the Community Services Sector (Portable Long Service Leave) Bill 2024. The purpose of the bill is to create portable long service leave for community sector workers. I acknowledge in the gallery the hardworking officials of the Australian Services Union [ASU] led by their secretary, Angus McFarland. The ASU represents thousands of community sector workers and has thousands of members, 75 per cent of whom are women. They will be covered by the proposed scheme. I acknowledge their representatives in the gallery, including Helen Westwood, a former member of this place. I thank all of those workers and the union for its incredible work on the bill. I thank those who are watching online. I hope the Parliament listens. I acknowledge also the work of the Minister for Industrial Relations, whom I represent in this place today. She has done an incredible job bringing the bill together and representing people who work across the sector to hopefully—if the Parliament supports the bill—change the long service leave scheme so that it is portable for those workers.

Whether it is supporting people who are homeless, people with disability or people coming to neighbourhood centres, members of the ASU do incredible and important work. They are professionals. We need thousands more people in the sector over the next five to 10 years, and portable long service leave will make a difference both in recruitment and retention for the sector. It will also give our long-serving community sector workers who are predominantly women a well-earned break after years of giving to the community. There are two minor amendments to the original bill that was passed by the other House. The first amendment sought to clarify that "sexual assault services" are covered as an eligible service by the new portable long service leave entitlement scheme. The second amendment removed the ability of a Minister through regulation to omit a covered service from schedule 1 in the future, ensuring that Parliament determines what services are eligible under the scheme.

I seek leave to have the remainder of the second reading speech incorporated inHansard.

Leave granted.

The community services sector encompasses a wide range of services and employs around 250,000 workers across 7,300 service providers, contributing an estimated $15.4 billion annually to the New South Wales economy.

The sector is set to double by 2049 to meet increasing community demand.

Some of the services that make up the important sector include community mental health support—that is number one, and those in the gallery see that and know that—accommodation support services, family and domestic violence services, foster care services, homelessness support services, multicultural services and disability support, all of which play a crucial role in our society.

It is also a highly feminised sector, with over 75 per cent of workers being women. I can say that it is about 90 per cent in the gallery today.

When the Labor Party first introduced the Long Service Leave Bill in this House in 1955, the Hon. Abram Landa said that one of the objectives of the bill was to "help the employee to regain his health and strength, which, in many cases, have become impaired after years of constant work in the one industry".

The word "burnout" may not have meant the same thing in 1955, and it is notable that the Parliament at the time framed an employee as a man only, but it is clear that the Parliament of the day was aware of its harmful effects and the remedy of extended leave.

It is no secret that community services workers struggle with overwhelming stress, burnout and fatigue due to the emotional and physically taxing nature of the work.

Short-term and insecure funding arrangements are common in the community services sector.

Many workers are employed on short-term arrangements because employers cannot guarantee their income.

That was another election commitment made by the Government. The Minister for Families and Communities was proud to make the announcement with the Premier about having five-year guaranteed service agreements. It provides strategic support and ensures security of employment.

Workers in the sector frequently change organisation and often work for more than one employer at a time, which means that workers do the same work for years or decades but do not meet the requirement to access their long service leave entitlement.

That was a recurring theme prior to the election. We have known about it for a long time. I can see that everyone in the gallery is nodding. It has been talked about for a long, long time.

In August the ASU invited the member for Penrith and me to Flintwood Disability Services.

We were there to make this announcement and to start the work and consultation.

We established a working group, made up of the government department, the ASU, the NSW Council of Social Service [NCOSS] and a number of other organisations, to consult and do the important, intensive work.

The work done by that working group, which has led to the wider public consultation, is here. It has been considered with an open mind and open heart, with consideration and with economic analysis. It is looking to the future.

It is great work. I commend everybody who was on the working party for their work. The public consultation opened a few months ago, and the survey response has been overwhelming.

I give an example of one community services worker, who is an ASU member by the name of Christine.

She has worked in the community services sector for over 35 years, yet she has never qualified for long service leave benefits. During this time Christine grappled with personal losses, caregiving duties and precarious contracts. While doing this, Christine told us she was also helping other women in refuges, health centres and in a domestic violence support service.

Another worker named Sarah shared that she spent 25 years in the community services sector across more than 20 organisations and was never able to access long service leave.

Christine and Sarah may not get the full benefit of portable long service leave, but the hope is that, by now being able to access this entitlement, it will help attract and retain the next generation of workers.

When I attended the Australian Services Union [ASU] conference last year, that was exactly what most of the members said to me. They said, "Sophie, we're not going to get it. We've been in the sector for 20 to 25 years, but this is about the next generation. This is about the other people who are working and coming through—the younger people. We want more people to come in the sector. That is why we're fighting. We've been here for 20 to 25 years and we're not going to get it, but it's for the next generation."

How noble, thoughtful and considerate of those workers, who have been advocating for such a long time, knowing that they may not be able to get it but that it is for the next generation. I thank those members for their strong advocacy. Although well intentioned, it is clear that existing long service leave entitlements are not fit for purpose.

We all know that, especially in the community services sector, because workers struggle to access these entitlements that are intended for them. The bill will bridge that gap to provide community service workers with the break they deserve.

As I mentioned earlier, the bill was developed through the working party, through our agency, but also through broad and extensive consultation. The key stakeholders consulted included sector peak organisations, employers, the ASU, as well as other government jurisdictions with established schemes, such as Queensland, Victoria and the Australian Capital Territory [ACT]. We know that South Australia is currently establishing its scheme.

The working group worked extensively, widely and together to get this legislation right. We need to make sure that we get it right.

There were 750 survey responses, 50 submissions, and 60 personal stories shared by workers from across this important sector. Of the 750 surveyed, 96 per cent said, "We have to get this done."

That statistic is critical. That figure astronomical. The time is now. The survey responses were overwhelmingly positive because the majority of workers and providers agreed that community service workers should be eligible for long service leave based on how long they have worked in the sector.

Many organisations highlighted that portability of entitlements will help workers to advance their careers and manage personal responsibilities, including caring and wellbeing.

We all know that it is a majority of women who work in this sector. We also know that they still have to do their own caring, their own domestic duties and their own running around.

They are not just working in an office; they have to provide a service.

That is where our modern work practices are at.

The demand for service from the public has changed. The demand for community services has changed and the way we provide those services has changed.

We need to make sure that the wellbeing and mental health of the amazing professionals in the community services sector are looked after.

We also want to see them develop professionally. Can we help them gain access to higher education and professional development, or some other type of training? We should be able to provide community services workers with that support as well.

The bill is also supported by the Department of Customer Service.

I acknowledge our terrific public servants who helped organise, analyse, and work with the working party through the consultations. There were a number of sector round tables that were well attended by the sector's peak organisations, individual workers, employers, and the ASU.

The bill was also designed by reviewing best practice in the existing comparable schemes in other States as well as by reviewing existing long service leave schemes in New South Wales.

As a result, I hope that community service workers in New South Wales will be able to enjoy access to the best portable long service leave scheme in the country. What we want to be the best in the country.

What we have had to do over the last year is bring New South Wales back to best practice so that it can lead the country and not be behind.

We want to be the leader in the portability of long service leave, and not be dragged, kicking and screaming. This is a really important day.

I turn now to the key details of the bill.

I show the people in the gallery the extensive work that has gone into formulating this fantastic bill, which will establish portable long service leave. The scheme will apply to eligible full-time, part-time and casual employees. Contractors will have the choice to opt into the scheme. The scheme will provide employees with 6.1 weeks of paid leave after 2,555 days of employment, which is the equivalent of seven years. The entitlement will apply irrespective of whether their service is accrued with one employer or more. Importantly, this will allow part-time and casual employees to reach the entitlement after seven years of employment, just as a full‑time worker would, and be paid accordingly. Once an employee has reached their initial entitlement, they will have access to a pro rata amount of leave for each additional 365 days of employment. In practice, this will mean that workers can qualify for and access their leave earlier than under the Long Service Leave Act 1955.

A shorter vesting period will better address the challenges faced by workers in the community services sector. It will also ensure consistency with equivalent schemes for community services in Queensland and Victoria, which provide access after seven years. The amount of long service leave paid to employees will be based on their highest ordinary weekly wage in the most recent two, four, 20 or 28 quarters of employment. In practice, this aims to ensure that payment is at the most beneficial rate, whether that is across the full seven years or the latest five years, one year, or six months. The definition of "ordinary pay" will include shift penalties but not overtime payments. This is aligned with current industry practice. Contractors who opt in will have the same entitlement as employees, with calculations being based on how long they have worked in the sector.

The payment will be based on their contributions to the scheme and the interest earnings on those contributions. Workers will generally have to take at least two weeks of leave to access their entitlement under the scheme. Pro rata payments can be accessed in limited circumstances only, such as permanently leaving the sector after accruing five years of service. This ensures that workers take a much-needed break for their many years of service in the sector. I will clarify "much-needed break". I agree that taking a break is what long service leave should be about, but we all know that in a lot of cases it is not about a break. I hate to say that often it is about fulfilling caring responsibilities, helping out your kids or doing something in your community. We know the intention behind long service leave, but we also know that because of the way we live our lives, sometimes we need this time for other things.

The bill provides a one-off benefit in the form of a 365 day service credit for workers who register within the first six months of commencement. The same benefit was provided in the introduction of the portable long service leave scheme for cleaning in New South Wales. The precedent already has been set. Our work is based on the same precedent established by a former Labor Government when it introduced a portable long service leave scheme for contract cleaners. The scheme will not apply retrospectively, which means that previous service will not be recognised. Accordingly, the bill sets out how it will work alongside the Long Service Leave Act 1955.

Workers will be able to continue to accrue service under that Act to ensure that those who are close to reaching existing long service leave or who have already qualified do not miss out. That is intended to not harm or disadvantage anyone. As a practical example, a worker with nine years of service with a single employer when this new scheme begins would be able to apply for their long service leave through their employer in another year. The employer remains directly responsible for the initial nine years of service and the service is liable for the payment in relation to the service accrued after its commencement. The employer would pay the worker in the usual manner and then apply to the Long Service Corporation for a pro rata reimbursement for the leave based on the overlap. That approach was taken in the introduction of the cleaning scheme, and I understand that it has been successfully administered. The scheme will be funded through a levy in the same way as the existing contract cleaning scheme and the building and construction industry scheme, and is based on the ordinary wages of the employees. Contractors who opt in will pay the levy based on their personal income.

It should be noted that organisations are already required to provide for long service leave for their workers. That has to happen under the law now. The levy will, effectively, replace the requirement to provide for existing long service leave entitlements and could potentially be financially favourable for employers for that reason.

Based on actuarial analysis, the proposed starting levy rate for this scheme is 1.7 per cent of ordinary wages. That is similar to Victoria's starting rate of 1.67 per cent in 2019 and the Australian Capital Territory's 1.6 per cent in 2010. The New South Wales cleaning scheme also began with 1.7 per cent in 2011. Like the cleaning scheme, the bill provides for the levy rate to be set through ministerial order. That approach will provide for timely adjustments while maintaining appropriate public and parliamentary oversight as a disallowable statutory instrument. The levy payments and any other contributions to the scheme will be pooled into a statutory fund with investment earnings managed by the New South Wales Government State-owned provider, TCorp.

Levies will form part of a quarterly return required from employers. Employers will be required to provide information about their workers as part of this return for entitlements to be tracked. I understand that will be an additional administrative process for employers. To ease the burden, I have been reassured that the information required will largely be information that employers are already required to record and report to the Australian Taxation Office. I completely understand the administrative and bureaucratic burden. I know that doing the paperwork et cetera is tough fora lot of non-government organisations, so I have asked the Long Service Corporation to make it as seamless as possible to ensure that we are not overburdening organisations with the same paperwork as the Australian Taxation Office. We will do our part in making sure that we support non-government organisations to streamline. The Long Service Corporation has been directed by me. It is here to help and to ensure that it provides assistance to organisations and overtime to the workers.

The scheme will be administered by the Long Service Corporation, which currently administers the other two schemes that I mentioned. The Long Service Corporation will be responsible for all scheme administration and compliance—for example, fund management, maintaining worker and employer registration, and managing levy payments and claims processing, among other duties. The bill establishes a sector committee to hear appeals of administrative decisions made by the Long Service Corporation and to provide advice on the scheme, particularly around quality assurance and standards. The committee will consist of nine members: the Secretary of the Department of Customer Service or a delegate as chair and another eight members that I will appoint. Four of those members will be from bodies representing employee interests—from the union—and the other four will be from the employer or non‑government organisation interests.

The scope and coverage of the scheme is intentionally broad to recognise the numerous and often overlapping services that make up the sector. Schedule 1 to the bill sets out the services that are captured by the scheme. At a minimum, the scheme will apply to any worker who directly provides a captured service. The services captured by schedule 1 are largely based on the coverage of the Federal social and community services award. This mirrors the approach taken in other jurisdictions. Where an employer's predominant purpose is to provide one or more captured services, the scheme will apply to all of their employees, including support and management staff. The reality of the sector is that there are employers who provide multiple types of services. It is also not uncommon for community service workers to wear multiple hats, often due to limited funding. For example, a worker in a neighbourhood community centre might provide frontline services while also doing the administration and payroll processing. I can see everybody in the gallery nodding. That is exactly what happens.

This approach will ensure that no workers slip through the cracks and miss out on the entitlements intended for them. That is why we have set up the committee to hear appeals. That is what currently happens with both the contract cleaning scheme and the building and construction scheme, where we have the union and employers from both sides who sit and listen to appeals. We are trying to streamline that and make sure it is fair as well. We are making sure that the systems are not being ripped off, that the scheme is well managed and healthy in terms of its funds, and that workers will get access to their entitlements. The bill intentionally does not define what "predominant purpose" means. Again, that acknowledges that there can be nuances involved in the services provided by employers which require additional discretion. The risk of being overly prescriptive here is unintentionally excluding workers and employers that should be covered. I am assured that the Department of Customer Service has committed to consulting with the sector further to develop and publish guidelines on how "predominant purpose" is to be determined. I acknowledge Victor and Hannah from the Department of Customer Service, two excellent public servants who have done an exceptional job in assisting the department, the union and the sector.

The legislation will commence on proclamation—the intention is that it will begin on 1 July 2025. That will allow time to develop the regulations and for employers, non-government organisations, workers and the corporation to prepare for rollout. It is a big deal, which is why it is going to take 12 months. The bill represents a significant step forward to support our community service workers. It is not just about recognition and thanks; it is about purposeful and meaningful entitlement and making sure that we finally get a portable long service leave scheme. It is important that New South Wales and our Government recognise the vital contribution these excellent professionals provide, not just in metropolitan Sydney and greater Western Sydney, but in rural and remote communities. Because government services have, over a very long period of time, moved away from some remote rural communities, non‑government organisations have had to come in to provide those critical services in those very remote communities. Again, it is really important that service is recognised. Community service workers face overwhelming stress, burnout and work insecurity. The bill is another building block in the Government's framework to fix these issues for community service workers. The work is demanding and physically taxing. Our community service workers deserve a long service leave entitlement, just like every other worker.

The Government has heard firsthand how workers face the loss of their entitlements overnight when they change employers. We have also heard about the growing challenges faced by employers and providers in meeting our community needs. Through the bill, the Minns Government will ensure that thousands of community sector workers can now access portable long service leave for the first time. Better, more flexible entitlements will improve workers' wellbeing and ultimately benefit the sector through worker retention, improved skill development and greater continuity in care.

On behalf of the Government, I thank all those who contributed to the development of the bill. Public consultation for the bill was excellent. We had an overwhelming response. Over 200 people attended the workshops and information sessions, ranging from peak associations through to providers and workers. There was strong support for portable long service leave among community services sector workers in New South Wales. The contributions from the sector were thoughtful and constructive. Excellent, innovative ideas were put forward about the provision of community services.

Providers' contributions were predominantly centred on how to make the new scheme work as opposed to whether the sector should have a portable long service leave scheme at all. That is fantastic. Providers and unions are coming together, saying, "We're here to make this work. How can we help? How can we make this work? We're going to work together, we're going to be innovative, and we can do some really great things to provide services to the public." That is what we want in New South Wales. I thank the Australian Services Union, the NSW Council of Social Service, Life Without Barriers and Flintwood Disability Services for their contributions. I also thank the service providers who contributed.

Of course, I thank the mighty Australian Services Union and especially its secretary, Angus McFarland, assistant secretary Jan Primrose, the management committee, and all of the activists, members and delegates for their wonderful work over many years. This is a very proud moment for those stakeholders. All of their hard work, their campaigning, has led to today. It is finally happening. I thank them for everything that they do. I also acknowledge the support of Unions NSW and the greater union movement.

I acknowledge my Labor colleagues, and members of The Greens and crossbench who have joined in this campaign. We have briefed the Opposition and the crossbench in relation to the bill. We will continue to do so over the course of the next two weeks, after which we will return to debate the bill. Members of this Parliament can expect to receive an email or a knock on their office door. The Australian Services Union has produced a booklet titledPortable Long Service Leave that outlines how important portable long service leave is for community services sector workers in New South Wales. We advocate that all members of Parliament, regardless of political stripe, back this bill for the introduction of portable long service leave for these workers.

I commend the bill to the House.

Second Reading Debate

The Hon. AILEEN MacDONALD (14:06): I contribute to debate on the Community Services Sector (Portable Long Service Leave) Bill 2024. Community service workers are disadvantaged in their ability to access long service leave due to the nature of the industry, especially given the prevalence of short-term employment contracts that are reflective of short-term service agreements, including with the New South Wales Government. Portable long service leave schemes facilitate access to long service for workers in industries where it is structurally difficult for an employee to work for the same employer for the requisite number of years. New South Wales already has portable long service schemes for the construction and cleaning industries, which have been operating successfully for some time.

The community services portable long service scheme is based on the payment by the employer of a long service levy for each employee to the Long Service Corporation. The scheme is designed to be self-funding from the levy itself, as well as from profits derived from the investment of the fund's money with TCorp. The levy is likely to start at 1.7 per cent but will decrease as the fund grows in size due to revenue from investments. Under the current law employers are obligated to set aside funds to pay potential long service leave liabilities for all their workers, so there is no new direct cost; it is just a redirection of those funds to the Long Service Corporation.

The NSW Council of Social Service has nonetheless expressed some concern about the impact of the levy on smaller not-for-profits, as well as the additional administrative burden. It has also raised concerns about the slow progress of the Government's plan to move toward the routine use of five-year service agreements for the delivery of community services. Many service providers and their employees are still waiting anxiously to learn whether their service agreements are being renewed from 1 July 2024. The scope of the community services that are covered is set out in schedule 1 to the bill. The list can be amended as needed by regulation. Child care and aged care are not currently included as there are additional complications with the sectors. Clause 4 of the bill appropriately enables the addition of services covered in schedule 1, either by amending the description of the listed service or by adding a new service. The clause included a provision empowering the Minister to omit a listed service from schedule 1. That would have been inappropriate, as once the levy has started to be collected for the class of employees covered by that listed service, there will be funds in what, by definition, is a long-term scheme. The Opposition raised that matter with the Minister, who agreed to support an amendment to remove it. The issue has now been satisfactorily resolved.

The bill provides for contractors to voluntarily join the scheme as registered workers. Contractors will pay a levy at a rate to be set by the Minister after receiving advice from the Long Service Corporation. The Opposition supports that approach. As self-employed persons, contractors providing community services should have the freedom to manage their own financial affairs and be able to opt into or decide to remain out of the government‑run long service leave scheme. I commend the bill to the House.

The Hon. NATASHA MACLAREN-JONES (14:10): As the shadow Minister for Families and Communities, Disability Inclusion, Homelessness and Youth, I contribute to the debate on the Government's Community Services Sector (Portable Long Service Leave) Bill 2024. The proposed legislation affects full-time, part-time and casual employees in a range of for-profit and not-for-profit sectors, with the flexibility for contractors to opt in. That includes but is not limited to disability supports and services, foster care services, homelessness support services, neighbourhood and local community services, out-of-home care services and youth support services. The details of the bill have been canvassed by the Hon. Aileen MacDonald and my colleague in the other place. My remarks reflect submissions made by stakeholders during the consultation process, including National Disability Services [NDS], Homelessness NSW and the NSW Council of Social Service [NCOSS].

Homelessness NSW indicated its support for the bill, noting additional resources are needed to cover the scheme's operational costs and mitigate its impact on already stretched services. Homeless NSW supports the need for a portable long service leave [LSL] scheme tailored to the specific challenges of the community services sector, particularly in homelessness services. As the peak body representing over 200 organisations, Homelessness NSW highlights that the scheme could effectively recognise and incentivise long-term service amidst increasing demands and workforce complexities.

However, NDS, which represents over 1,000 service providers, has expressed significant reservations about the proposed scheme. While it acknowledges the existence of portable leave schemes in other States, NDS points to the findings of the National Disability Insurance Scheme review, which indicate insufficient evidence supporting the effectiveness of such schemes in the disability sector. The concerns of NDS are focused on the potential negative impact on workforce retention and the integrity of person-centred support relationships, which are crucial in community services. NDS advocates for a national approach to portable long service leave schemes, emphasising the need for consistency and portability across jurisdictions. It highlights the necessity for clearer eligibility criteria, minimal administrative burden and a thorough cost-benefit analysis to protect disability service providers from undue financial strain.

NCOSS supports the scheme and also noted additional concerns that must be considered, particularly the potential financial strain the levy could place on smaller not-for-profits and the extra administrative burden it could create. All stakeholders stress the importance of increased funding to support the implementation of the scheme, concerns of additional administrative burden placed on the NGO sector, particularly for smaller and cross‑border providers, and the potential impact on workforce retention. I ask that the Minister address those concerns in her reply.

Homelessness NSW points out the financial pressures the sector faces, exacerbated by rising costs and inadequate funding arrangements. It calls for additional resources to cover the scheme's operational costs and mitigate its impact on already stretched homelessness services. Administrative complexities are another major concern highlighted in the feedback received. NDS points to the challenges of managing multiple LSL schemes alongside existing entitlements and determining entitlements for workers across State borders. Homelessness NSW shares those concerns and advocates for streamlined reporting processes and tailored support for smaller organisations to navigate regulatory requirements effectively.

Providing comprehensive education and clear communication is essential to ensure the successful implementation of the scheme that will benefit all. It is imperative that the scheme does not introduce overwhelming and unnecessary financial and administrative burdens and remains easy to understand and follow. The Government must ensure that the scheme not only recognises and rewards long-term dedication but also sustains and strengthens our vital community services sector.

Ms ABIGAIL BOYD (14:14): I contribute to the debate on the Community Services Sector (Portable Long Service Leave) Bill 2024 and indicate The Greens' support for the bill. The reform has been a long time coming. Unions in the sector and workers on the ground have long advocated for it, and The Greens have championed it for over a decade. I thank my colleague in the other place Ms Jenny Leong, The Greens spokesperson for industrial relations, for her excellent work. I also thank the union members, many of whom are in the gallery today, who have been at the forefront of this fight, advocating tirelessly on behalf of their communities to make this reform happen, namely the Australian Services Union [ASU] and its secretary Angus McFarland. The ASU has been diligently campaigning and organising around this issue on behalf of the sector for years, and I commend the union for the efforts that resulted in the bill.

The bill introduces a portable long service leave scheme for workers in the community services sector who are out on the front lines of our community every day, carrying out critical work. That includes support and service workers in areas including disability, domestic and family violence, neighbourhood centres, child safety and support, First Nations community services, welfare, financial, legal, homelessness, out-of-home care and youth support services and more. The bill's specification of community services workers in schedule 1 is broad, which The Greens welcome. We want to make sure we are not leaving anyone behind with these changes so that the entire sector is captured under the exact same scheme.

I thank the Minister's office for working with The Greens to include an amendment, which has been agreed to in the other place, to ensure that sexual assault services are not left out of this bill. That omission appears to have been a drafting error and was picked up by my incredibly diligent staff member Therese Camus. Sexual assault and sexual violence services are a part of the sector that is often overlooked and forgotten when we speak about community service jobs. Importantly, sexual assault services are not the same as domestic and family violence services. They provide specific, dedicated frontline trauma-informed support and services to victims of sexual assault through professional trauma specialist counsellors, crisis telephone and online support, referrals and more.

Ensuring the portability of long service leave will benefit tens of thousands of workers in this sector who are currently unable to accrue long service leave, which is a vital industrial right for working people in Australia. A recent survey conducted by the ASU of its members found that 57 per cent of workers who have worked in the sector for 10 years or more have never had access to long service leave. The bill will provide workers with 6.1 weeks of paid leave after 2,555 days of employment, which is the equivalent of seven years, consistent with existing schemes in Queensland, the Australian Capital Territory and Victoria. I also note that the Northern Territory is also in the process of introducing a similar portable long service leave scheme for community services workers.

The Greens support this shorter vesting period compared to the 10 years currently applied across other sectors as it takes into account the additional challenges and workforce nuances faced by community services workers. Jobs in the community services sector are highly feminised and have been undervalued for too long under patriarchal capitalism. But their value cannot be overstated. Governments should be doing everything within their power to entice people into these fulfilling and vital roles. But our current funding structures result in highly precarious work, with little to no continuity of contracts. Workers in these sectors are also highly responsive to the changing needs of their community and so may find themselves working across different sections of the community sector, or more often be forced to follow ad hoc funding streams and grants just to pay the bills.

The sector is experiencing rapid growth and at the same time becoming increasingly precarious, with the vast majority of frontline workers employed on a casual, part-time or contract basis. Much of the workforce operates under short-term funding arrangements and tenders, which they spend a significant amount of time, energy and resources negotiating in order to keep their doors open, constantly applying for grants and taking extreme measures to service their community. That funding uncertainty, along with often inadequate funding levels resulting in workers sacrificing their unpaid time, contributes to job insecurity and limits career pathways and resources available to support workers who wish to upskill. Additionally, many of these workers frequently change job roles or contracts within an organisation, or change organisation entirely, often working across several areas at once or over their career, like domestic violence, disability, First Nations services and more.

Considering the realities of the funding environment in which they work, the provision of a portable long service leave scheme for community sector workers is welcome and necessary. But we cannot now wash our hands of the issue or rest on our laurels. When we talk about improving rights and conditions in the community sector, the work is just beginning. Community service providers need greater certainty and continuity of funding, with rates that keep pace with or surpass hard fought for improvements to award pay rates as well as the rising cost of living and inflation. Government bears most of the responsibility to get this right, and I look forward to an improved funding model being developed.

This is particularly prevalent in disability care and support work, which has the highest levels of casualisation in the care economy. The disability care sector is also unique in its consumer-centred models of service provision, through the NDIS as well as privately and individually funded services, which allows consumers to have greater control over their levels of care, the services they access and the delivery of these services, including who delivers them, when and where. This approach has changed the face of care work in recent decades and has largely influenced the precarious style of the casual and contract-based workforce that works flexible hours, often across multiple providers at once.

Workforce studies have found that the disability sector workforce is becoming increasingly precarious, with a continued undersupply and a high annual turnover between 15 and 25 per cent. All levels of government must work together on a long-term strategy to strengthen the disability workforce in relation to worker protections as well as retention, which will also serve to maximise the quality of care that people with disability receive. It is also particularly common for disability workers to work across industries in both disability and aged care, and vice versa.

I understand that the Government has not included aged-care workers in this bill because there are existing forces at play at a Federal level, and the industry has specific regulations and oversight mechanisms. I look forward to seeing reforms to the aged-care sector in the coming years to bring the sector in line with this bill and ensure that aged-care workers are also afforded the opportunity to accrue portable long service leave. The bill also does not mandate the portability of long service leave for individual contractors. It instead has the function of opting in.

The Greens support the industrial rights of gig workers, who are themselves key workers that carry out vital frontline work in the community services sector. I note that Labor made several pre-election commitments directly addressing the needs and rights of gig workers, and I look forward to working with Labor members on these reforms in due time. It is critical that we leave no worker behind, and that includes gig workers. Ensuring and strengthening worker rights and protections is core Greens business. We have long championed the right for all precarious and contract-based workers across all sectors to accrue portable long service leave.

I look forward to working with the Labor Government to extend this scheme across other sectors, including catering and hospitality, security and other industries in which workers are frequently engaged for short periods. Right now in New South Wales, construction workers, contract cleaners, teachers and nurses all have access to portable long service leave schemes. It is time we brought the community services sector in line with these sectors. The Greens support the bill.

The Hon. Dr SARAH KAINE (14:22): I, too, support the Community Services Sector (Portable Long Service Leave) Bill 2024. I acknowledge the work of the Australian Services Union, particularly the secretary, Angus McFarland. I know firsthand that, on behalf of the wonderful members of the Australian Services Union, Angus has been grappling with how to best contend with precarious work. This is just one of the many things the union has done and is doing on behalf of its membership.

I have much that I could say about gig work; it has been an area of research and interest for me for a long time. But I will take a different tack. I am lucky enough to have Danielle Dwyer as an intern in my office. She is also a support worker. She has kindly written me a speech to contribute from that point of view, so I thank her. Danielle is a full-time university student and began working in the disability support sector in 2022. She was first employed through an agency where she supported a number of individual clients and worked with organisations like the St Vincent de Paul Society NSW Ozanam Learning Centre. Danielle is now a sole contractor.

Initially, being employed through an agency that connected her to a wide range of clients worked best for Danielle. It allowed her to work in various areas, pick up extra shifts and explore where her skills would be best utilised. Over time, as her university load increased, she worked with fewer clients. It made sense for her to change her employment circumstances. Those in the sector know all too well that the environment is ever-changing. There are many stories like Danielle's and a multitude of reasons workers change employers. Funding allocation means that clients change providers, so a support worker may find it best to also make the switch to continue working with them.

Alternatively, there simply may not be a wide enough net of potential clients for a support worker through their current agency or place of work and they may make the choice to switch to another. Moreover, the nature of the care sector is expanding. Every year, more service providers are established, especially organisations that have particular focuses such as sports, physical activities, et cetera. As more tailored services emerge, people find the opportunity to work in a place that better aligns with their individual interests.

Long service leave is meant to recognise the long-term dedication and commitment of a worker to their role. For community service workers, their dedication and commitment are to the sector and the individuals within that sector that they support, not necessarily to their individual employers. Portable long service leave recognises the true nature of the community service and care sector. It ensures proper acknowledgement of the essential role that community and disability workers play in supporting some of the most vulnerable people in our community.

Our laws should be reflective of how the sector operates and the genuine experience of workers. Community and disability workers around the country already have portable long service leave in some jurisdictions. We know that construction workers and cleaners already have access to it in New South Wales. The dedicated, inspiring community of disability workers in New South Wales cannot be left behind. They should be supported in making working choices that are right for them without being denied this entitlement.

I thank Danielle for her contribution. I add that I very much support this bill as, during my time in the public sector, a part of my responsibilities was overseeing compliance with the Long Service Act 1955. I probably have more of a nerdy appreciation of all things long service leave than most—more than most would want, to be honest. I note that this bill is very important not just because it covers a group of workers that are more likely to move between employers but also because its entitlements kick in at seven years.

A member spoke about national consistency, which I know is a desire of employers, but interjurisdictional negotiation on long service leave might be another 55 years in the making. In saying that, the seven years is quite an important and big step forward for these workers. I am glad that an industry that has a large contingent of women workers has access to that particular entitlement. I support the bill, but I also look forward to updating the rather aged New South Wales Long Service Leave Act, which could learn a lot from its much younger legislative sibling. I commend the bill to the House.

Dr AMANDA COHN (14:27): From my perspective as The Greens spokesperson for health, including mental health, I briefly add to the excellent contribution of my colleague Ms Abigail Boyd. The Greens welcome the introduction of a long service scheme through the Community Services Sector (Portable Long Service Leave) Bill 2024. This reform goes towards the much-needed sustainability for which those working in the community services sector have called for years. I acknowledge some of those advocates are present in the public gallery today. This bill brings us into line with the Australian Capital Territory, Queensland and Victoria. The $9.7 million to establish the portable long service leave scheme is listed in the Gender Equality Budget Statement, which seeks to address the sexist undervaluation of essential work. The statement says that care and education are priority areas and that the Government is designing work "at a whole-of-government level, to better understand the long‑term trends" and "the experiences of workers, including looking at the experiences in New South Wales and other jurisdictions".

To put it simply, New South Wales is realising it cannot lag behind the conditions offered in neighbouring States and expect to retain its workers during a shortage. As the largest employer of women in Australia, the New South Wales Government must next improve pay in feminised industries such as nursing, midwifery and early childhood education. I acknowledge the Minister's comments that this is only the first tranche of the scheme, and the Government is aware of the need to include other entitlements such as portable sick leave. All workers, especially workers in the community services sector who engage directly with vulnerable people, should be provided with adequate access to sick leave. This should include gig and casual workers. During both a cost‑of‑living crisis and a surge in the transmission of airborne infections, it is cruel and unethical for workers to have to choose between their health, the health of others and making ends meet. No‑one should have to choose between keeping their community safe and putting food on the table.

I recently chaired the inquiry into outpatient and community mental health services. The committee heard clearly the conditions for workers in the community services sector as well as in the health sector are exacerbating workforce shortages that mean people cannot get the mental health care or the psychosocial support they need. The bill is an important improvement. To improve the job security of workers in the sector the Government must also increase funding cycles to a minimum of five years; this was a key recommendation of the mental health inquiry. The current under-utilisation of various professions, including peer workers, social workers and others in community health multidisciplinary teams, must be addressed.

Since the Minns Government introduced paid placement for police recruits, applications have increased by 40 per cent, and there is strong demand for this to expand to students in health professions. The recent gap analysis of community mental health services in New South Wales was released five months after its production. Days after, I drafted the final report for the New South Wales mental health inquiry, which would have benefited significantly from the inclusion of its data. It revealed a gaping workforce shortage and lack of accessible services. This shortage and lack of accessibility was particularly true for First Nations people. In New South Wales, community mental health full‑time equivalent staff per 100,000 population has declined from over 54 per cent to 48.9 per cent in the past decade. We had the second lowest number of community mental health staff amongst all States and Territories in 2020-21.

The bill also benefits workers in many neighbourhood centres. As The Greens spokesperson for emergency services, I have been encouraging the Minister to fund neighbourhood centres to play a greater role in disaster resilience and recovery. Looking after that workforce is critical to enable that work to be done effectively. While we discuss the value of portable long service leave today, I must again raise the need for portable entitlements for general practice registrars. It is getting harder and harder to see a GP in New South Wales, with escalating out‑of‑pocket costs and long wait times. This is in part because not enough doctors are choosing to specialise in general practice.

Currently when a junior doctor chooses to specialise in general practice, they take an enormous pay cut and lose entitlements, including parental and study leave, as well as facing thousands of dollars in exam fees. The Single Employer Model for rural generalist trainees is an excellent initiative, but similar provisions should be available to all GP registrars. The Greens support the bill and are keen to work with the Government to progress the further reform that is needed for essential workers, including in the community services sector, to thrive and to provide the best care and support for the communities that we represent.

The Hon. MARK BUTTIGIEG (14:31): I am pleased and proud to support this important Labor reform in a long line of Labor reforms over a short period of time. I acknowledge the presence of the Australian Services Union [ASU] secretary Angus McFarland and officials. I do not think Jan Primrose is here, but I see former member Helen Westwood is. I welcome and thank them for their advocacy. I also acknowledge Minister Sophie Cotsis and her efforts in bringing this to fruition. Today the Minns Labor Government is delivering yet another key election promise. The Community Services Sector (Portable Long Service Leave) Bill 2024 allows community sector workers to accrue long service leave based on their time in the industry instead of their time with an individual employer. This already exists in New South Wales for the building and construction industry and contract cleaners.

As someone who was brought up in the electricity industry when it was fully owned, I had the benefit of automatic eligibility for long service leave on a pro‑rata basis based on service. We took those sorts of things for granted. In a sector like the community sector, it is so critical that people who do not have the ability to have long‑term tenure with one employer to nevertheless have the same benefits and rights as those people who have that privilege, particularly given the value-add that they contribute to our community in the frontline jobs of disability, youth, domestic violence and homeless services.

Expanding portable long service leave will benefit the community sector greatly. For example, despite working in domestic violence services for two decades, Christine Smith has not been able to gain long service leave as she has worked for six different organisations. This is not uncommon in the community sector. Disability work is known to be a precarious profession with irregular hours and high levels of casualisation. Sadly, Christine could not take adequate leave to support her parents' end-of-life care personally. This may not have been the case if portable long service leave had been available to her.

Employers support expanding long service leave. Russell Gould from Flintwood Disability Services said, "This is a really great initiative because it means you can give employees a reason to stay within the disability services industry." That is what this is all about: rewarding people's loyalty to the industry, not necessarily a transient employer, and making sure that people have an incentive to stay in that industry. The high casualisation of the community sector has contributed to a high turnover rate and a shortage of workers. There has also been a growth of the gig economy platforms and apps in the community sector, with some platforms not providing opportunities for leave and reports of delayed pay. This has contributed to issues with attracting and retaining community sector workers. By expanding portable long service leave, around a quarter of a million community sector workers will be better off.

According to Angus McFarland, the New South Wales and Australian Capital Territory branch secretary of the Australian Services Union, the expansion of the portable long service leave scheme will give community service workers "the recognition and reward that they deserve and help create a more attractive, sustainable sector". Portable long service leave for the building and construction industry and contract cleaning industry are all the work of former Labor governments in 1955, 1986 and 2010 respectively. Importantly, the drafting of the bill has involved considerable consultation with unions, peak bodies, government agencies in New South Wales and around Australia, as well as the public through an online "have your say" page. I am incredibly proud that this Labor Government is continuing the party's tradition of making real change for workers. The Minns Labor Government is just getting started rebuilding these services for the long-term benefit of the people of New South Wales.

In a society which tends to disproportionately reward those who are in the corporate sector—I am not trying to demean the value-add of those people who run big companies or who are in privileged managerial positions, but comment in terms of the proportionate contribution to society's wellbeing—for people in our community services sector, the idea that they cannot have a basic and fundamental right to carry over leave entitlements from one employer to the other beggars belief. Thank God for the union movement and unions like the ASU being the transmission mechanism, campaigning on the ground to make sure that when we get Labor governments, they act on these things to make sure society rewards and recognises the value-add that those workers contribute to our community. I am proud to be part of a Labor Government that is doing that. Again, I thank the ASU for all of its advocacy and campaigning. I especially thank Minister Sophie Cotsis, who has championed this from day one, doing what Labor Government Ministers should do.

The Hon. EMILY SUVAAL (14:37): I make a brief contribution and speak in support of the Community Services Sector (Portable Long Service Leave) Bill 2024. I acknowledge the work of the Australian Services Union [ASU] and its secretary, Angus McFarland, along with Helen Westwood and Jan Primrose, who members know very well. I also acknowledge their delegates and officials who join us in the gallery today and thank them for all of their ongoing work, part of which has led us to debating this legislation today. I also acknowledge Minister Sophie Cotsis from the other place, who has been a huge part of making this happen today. I acknowledge her ongoing advocacy for the workers of New South Wales.

I will talk briefly about what the bill means to community services workers. In doing so, I can think of no better way than to quote ASU member Jarrah, who says, "The long service leave change would mean that if my clients that I have been working with for a long time change their service provider, or if they move, I can go with them. I can go with them without having to worry about losing my benefits and my entitlements." To me, that quote says everything that we need to know about the sorts of workers that this change will benefit. Their first thought is for the people that they are looking after, and it says so much about the sorts of workers that this bill aims to support.

It is important for the Government to do all that it can to support workers, like Jarrah, whose first thought about a change like this was its impact on the continuity of care for her client. That says so much. As a Government member, I am very proud to support the bill. I also thank the other voices of the ASU that came through, including Effie, Joana, Catherine, Anita, Victoria, Melissa, Christine, Silvana, Michelle, Vila and Leanne. I thank them so much for their ongoing work, advocacy and for all that they do.

The Hon. CAMERON MURPHY (14:40): I associate myself with the Community Services Sector (Portable Long Service Leave) Bill 2024. I acknowledge the vital and important work of the Australian Services Union in running this most important of campaigns. I thank the secretary, Angus McFarland, and Helen Westwood and Jan Primrose. Most importantly, I thank all of the rank-and-file members and delegates of the union on the ground that have fought for this change. The bill brings these workers in line with what most workers in this State have: access to long service leave. It is based on a similar scheme in the construction industry that has been around for many years.

The change will act for the benefit not only of employees but also of employers. It will help retain people in such an important sector where they can continue to do their wonderful work looking after the people who need their services the most. I thank the Minister for bringing the bill promptly to this House. I associate myself with what is an absolutely important and significant change that is core Labor Party policy. I commend the bill to the House.

The Hon. TARA MORIARTY (Minister for Agriculture, Minister for Regional New South Wales, and Minister for Western New South Wales) (14:41): In reply: I thank all members for their contributions to the debate on the Community Services Sector (Portable Long Service Leave) Bill 2024. In particular, I thank the Hon. Aileen Macdonald, the Hon. Natasha Maclaren-Jones, Ms Abigail Boyd, the Hon. Dr Sarah Kaine, Dr Amanda Cohn, the Hon. Mark Buttigieg, the Hon. Emily Suvaal and the Hon. Cameron Murphy. I turn now to the issues that were raised.

The Hon. Natasha Maclaren-Jones expressed her hope that the new scheme would not place a further administrative burden on providers. In response, the Government hopes the scheme will instead alleviate the administrative burden that providers currently face when administering their long service leave obligations. The payment of long service leave entitlements to workers will now be managed by the Long Service Corporation, not the provider itself. The corporation will also be responsible for recording each eligible worker's service. I acknowledge the comments of the Hon. Natasha Maclaren-Jones about how the scheme will operate across State borders. That affects all long service leave regimes in Australia and needs a national approach.

Ms Abigail Boyd raised the lack of leave entitlements for gig workers, including long service leave. In response, I note that the Federal Government has introduced a number of reforms to the Fair Work Act in recent months, including a new definition of an employee. The new definition aims, in part, to define when a gig worker is an independent contractor or an employee. The bill allows independent contractors working in the sector to opt in, but it is not compulsory like it is for employees in the sector. When the new definition of an employee in the Fair Work Act commences, it could very well lead to many gig workers receiving leave entitlements, including long service leave, for the first time.

Today is a good day for our community sector workers. I again thank the Australian Services Union New South Wales branch and its secretary, Angus McFarland. Angus and his predecessor, Natalie Lang, have campaigned for several years for this scheme to provide this benefit to the community sector workforce. I also thank the NSW Council of Social Service, Life Without Barriers and Flintwood Disability Services for their engagement on the bill. I also thank all of the service providers who have contributed.

On behalf of the Government, I thank those who contributed to the development of the bill. Public consultation was extensive and had an overwhelming response. Over 200 people, ranging from peak associations through to providers and workers, attended the workshops and information sessions. There was strong support for portable long service leave among community services sector workers and providers across New South Wales. I thank the dedicated public servants in the Department of Customer Service who helped to develop the bill. I thank the Long Service Corporation for its considered input. We are indebted to all of them. Without contributors' sterling efforts, this bill would never have come to be.

Finally, I thank the Minister for Industrial Relations, Sophie Cotsis, who does incredible work inside the Labor Government to drive reforms like this one. We are grateful for the incredible work and effort that she puts into delivering for workers across New South Wales. I say to all community sector workers that today is their day. I am sure that I can speak on behalf of the entire Parliament to thank them for the incredible work that they do day in and day out. I commend the bill to the House.

The DEPUTY PRESIDENT (Ms Abigail Boyd): The question is that this bill be now read a second time.

Motion agreed to.

Third Reading

The Hon. TARA MORIARTY: On behalf of the Hon. Daniel Mookhey: I move:

That this bill be now read a third time.

Motion agreed to.