From 1 July 2026, businesses in the Australian Capital Territory will be included in a Portable Long Service Leave (PLSL) scheme for the first time. It’s a significant shift, and one that every salon owner in Australia should be paying attention to, whether you’re in the ACT or not.
Right now, this scheme only applies in the ACT. But the direction of travel is clear. Other states and territories are expected to consider similar arrangements in the future, and the hairdressing and beauty industry, with its high workforce mobility and growing number of sole operators, is squarely in the frame.
So what does this actually mean for you? And could it be one of the most important things to happen for workforce retention in our industry in years?
What Is Portable Long Service Leave?
Under the traditional long service leave model, an employee accrues entitlements based on continuous service with a single employer. Leave your salon after six years? You walk away with nothing. Start at a new salon? The clock resets to zero.
Portable Long Service Leave changes that. Under this scheme, service is tracked across multiple employers. So if a hairdresser works at three different salons over seven years, all within the ACT, they’ll still qualify for long service leave, because their service follows them.
The scheme is administered by ACT Leave under the Long Service Leave (Portable Schemes) Act 2009, and is funded through a quarterly levy paid by employers. Think of it like super, it’s an ongoing cost per employee, reported and paid quarterly.
The Key Details (ACT, from 1 July 2026)
Employer levy: Currently 1.07% of gross ordinary wages per employee, paid quarterly.
Entitlement: Workers become eligible for 6.06 weeks of long service leave after 7 years of recorded service within the industry.
Portability: Leave accrues across multiple employers, as long as the worker remains employed within the hairdressing and beauty industry. If they leave the industry entirely, the entitlement generally cannot be accessed unless specific claim conditions are met under the ACT Leave scheme.
Registration deadline: Employers must register with ACT Leave by 30 June 2026.
First quarterly return: Due by 31 October 2026.
Apprentice exemption: Apprentice wages are exempt from the levy. However, employers must still report apprentice service days so their industry service can be recorded. This exemption does not apply to school-based apprentices.
Refunds: Contributions paid into the central fund are not refundable to employers, even if an employee leaves your salon.
What Salon Owners Need to Do
If you operate in the ACT, here’s your checklist:
- Register your business with ACT Leave by 30 June 2026
- Register all eligible employees in your first quarterly return (due 31 October 2026)
- Submit quarterly reports on wages and service for each eligible employee
- Pay the quarterly levy (currently 1.07% of gross ordinary wages)
- Retain payroll and employment records for at least 7 years
- Budget for this as an ongoing cost, like super, it doesn’t go away
If you’re outside the ACT, you don’t have any obligations yet. But now is the time to understand how this works, because it’s likely heading your way.
The Bigger Picture: Why This Could Be Good for the Industry
Here’s where it gets interesting.
Let’s talk about the elephant in the room: the growing trend of hairdressers leaving traditional employment to work solo.
The AHC has been tracking this shift for years. The rise of rent-a-chair arrangements, freelance stylists, home-based operators, and studio suites has fundamentally changed the structure of our industry. According to IBISWorld, there are now over 40,000 hairdressing and beauty businesses in Australia, with the average salon employing just 2.7 people. That tells you something about how fragmented the workforce has become.
The AHC’s own research has highlighted that experienced stylists — particularly women returning from parental leave — are increasingly choosing not to return to salon employment, opting instead for the flexibility of self-employment. And while there’s nothing wrong with going solo, the cumulative effect on the industry is significant: fewer mentors for apprentices, fewer structured workplaces investing in the next generation, and a growing skills pipeline problem.
This is where Portable Long Service Leave could change the equation.
The Retention Argument
Under the old system, long service leave was tied to one employer. If you left after five or six years, you lost everything. There was no financial incentive to stay in the industry, only to stay in one job. And for many hairdressers, that simply wasn’t realistic.
Under PLSL, the incentive shifts. The entitlement follows the worker across employers, provided they remain within the hairdressing and beauty industry. If a worker leaves the industry entirely, further accrual stops, and access to the entitlement depends on whether they meet the claim conditions set out by the ACT Leave scheme.
Think about what that means in practice:
- A stylist considering going freelance or rent-a-chair still has an incentive to stay in structured employment, because they’re building toward a real, tangible entitlement.
- An experienced stylist thinking about leaving the industry altogether has a financial reason to stay, even if they change salons.
- A hairdresser returning from parental leave has a stronger case for re-entering the employed workforce rather than going out on their own, because their years of prior service haven’t been wiped.
- An apprentice entering the industry knows that every year of service counts, regardless of where they work, giving them a long-term reason to see hairdressing as a career, not just a job.
In short: PLSL rewards people for staying in the industry. And for an industry that loses 63% of apprentices before they finish their first year, that’s not nothing.
The Employer Perspective: Costs and Trade-Offs
Let’s be honest, this isn’t free. A 1.07% levy on gross wages is a real cost, and for small salon owners already managing tight margins, it’s another line item to budget for.
But there’s a trade-off worth considering:
Under PLSL (Portable Scheme) |
Without PLSL (Traditional Model) |
| Small, predictable quarterly payments | Large lump-sum payout after 7–10 years |
| Levy is a fixed percentage of wages, making it relatively easy to forecast and budget for.
(Note: the percentage can change over time.) |
Liability sits on your books and grows over time |
| No lump-sum shock when a long-term employee takes leave | One long-serving employee can create a significant cash flow hit |
| Apprentice wages are exempt from the levy (excluding school-based apprentices) | Apprentice long service accrues the same as all staff |
| Employees incentivised to stay in the industry | Employees only incentivised to stay at your salon |
For many salon owners, the predictable levy model is actually easier to manage than the traditional approach, where a long-serving employee’s accrued leave can become a significant financial liability that hits all at once.
What About Solo Operators and Contractors?
Here’s an important detail: under the ACT scheme, contractors, working directors, sole traders, and individual partners in a partnership can voluntarily opt in to the scheme and accrue service toward a benefit (paid as a lump sum rather than leave).
But here’s the key difference: if you’re employed, your employer pays the levy for you. If you’re self-employed, you’re responsible for funding your own entitlements.
For a hairdresser weighing up whether to stay employed or go solo, this creates a meaningful financial consideration. As an employee, your long service leave is being funded by your employer, at no cost to you. Go solo, and you’re on your own, or you miss out entirely.
This doesn’t mean people won’t choose self-employment. But it does mean there’s now a clearer financial case for staying in structured employment, particularly for mid-career stylists who are five or six years into their industry service and approaching an entitlement.
Looking Ahead: Will This Come to Other States?
Right now, the ACT is the only state or territory with a portable long service leave scheme that covers hairdressing and beauty. No other state has confirmed equivalent legislation.
But the trend is clear. Portable schemes already exist in most states for construction, community services, and contract cleaning. The expansion into services industries like hairdressing, hospitality, and food services in the ACT is being closely watched. If it works, and if employee groups continue to push for it, similar schemes are expected to follow in other jurisdictions.
The AHC is actively engaged in advocacy around this issue. Our position is that any expansion must be fair, workable, and sustainable, balancing employee entitlements with the realities of running a small business in the hair and beauty sector. We’ll continue to provide updates as the landscape evolves.
Quick Reference: FAQ for Salon Owners
Do I have to pay for every employee?
Yes, all eligible employees must be included in quarterly reporting and levy payments. Apprentice wages are exempt from the levy, but their service days must still be reported. This exemption does not apply to school-based apprentices.
Is the levy refundable if someone leaves?
No. Contributions stay in the central fund. There is no refund to employers.
Does the leave move with employees?
Yes. Service moves with the worker across employers, provided they remain employed in the hairdressing and beauty industry. If they leave the industry entirely, accrual stops and eligibility to claim the entitlement depends on the conditions set by ACT Leave.
When do I need to register?
Register with ACT Leave by 30 June 2026. Your first quarterly return is due by 31 October 2026.
Does this apply outside the ACT?
Not yet. This scheme is currently ACT-only. However, similar arrangements are expected to be considered in other states and territories in the future.
What if I operate interstate but have staff working in the ACT?
If you have employees performing eligible work in the ACT, you must register with ACT Leave regardless of where your business is based.
Can solo operators or rent-a-chair stylists opt in?
Yes. Contractors, sole traders, and working directors can voluntarily register and accrue service toward a benefit, but they fund their own contributions.
The AHC’s View
Portable Long Service Leave is a significant change for our industry. It brings new compliance obligations and costs for employers, and the AHC doesn’t minimise that.
But we also see the potential. In an industry where workforce mobility is high, where apprentice dropout rates are alarming, and where the shift toward solo work is fragmenting the employment base, a scheme that rewards people for staying in hairdressing — not just staying in one salon — has real strategic value.
If it encourages even a proportion of experienced hairdressers to remain in structured employment rather than going out on their own, the ripple effect is significant: more mentors for apprentices, more sustainable salons, and a stronger industry pipeline.
We’ll continue to advocate for fair implementation, provide compliance support to our members, and keep you updated as other states consider similar schemes.
If you have questions about Portable Long Service Leave or need help preparing your salon, contact the AHC or visit actleave.act.gov.au for the full scheme details.
