ACT Long Service Leave.

How long service leave works in Australian Capital Territory

The ACT reaches the full entitlement at 7 years, not 10, under the Long Service Leave Act 1976. That is 6.0667 weeks at 7 years, with a further one-fifth of a month accruing for each subsequent year.

The full entitlement is 6.0667 weeks at 7 years, plus a further 1/5 of a month for each subsequent year. Long service leave sits outside the National Employment Standards, so this is set by Australian Capital Territory law rather than federal law, and the figures differ from every other state. Compare all eight in our guide to long service leave after 10 years.

Leaving before 7 years: pro-rata in ACT

Pro-rata long service leave becomes possible at 5 years of continuous service in Australian Capital Territory. That threshold is necessary, but in this state it is not sufficient.

This is the single most misunderstood part of long service leave, and it is where people lose the most money. The threshold is what gets quoted in conversation; the condition is what decides whether anything is actually paid. Our pro-rata long service leave guide sets out the rule for all eight states and territories side by side.

What counts as continuous service

Continuity survives paid leave, authorised unpaid leave and a transfer of business. ACT coverage follows the place where the employment is properly located, which matters in a city where a large share of workers live across the border in NSW.

How the payment is calculated

Payment is at your ordinary rate when the leave is taken. Where hours have varied, the ACT averages over the preceding 12 months of employment.

How the payout is taxed

The entitlement is set by Australian Capital Territory law, but the tax on it is federal and works differently to almost every other payment. The ATO splits a long service leave payout by when the service was performed, not just why you left, and taxes each slice under the rules that applied at the time. Service from 18 August 1993 is taxed at your marginal rate on an ordinary resignation, or capped at 30% plus the Medicare levy on a genuine redundancy. Earlier service is treated more favourably again.

This is why a flat 32% estimate is usually wrong: that figure is a ceiling plus the Medicare levy, not a fixed rate, so anyone below the 30% bracket pays less. Work out the split on your own payout with the long service leave tax calculator.

An ACT worked example

Does other leave keep accruing while you are on it?

Yes. Long service leave is paid leave, and paid leave counts as service in every Australian jurisdiction. That means annual leave and personal leave continue to accrue for the whole time you are away, and the period also counts towards your next long service leave milestone. A worker taking 6.07 weeks in ACT comes back with roughly a week of extra annual leave already banked.

A public holiday falling inside a period of long service leave is treated the same way it is inside annual leave: you are not taken to be on leave that day, so it does not come out of your balance. The ACT dates are listed on ACT public holidays. If you fall ill during long service leave, most states let you convert the affected days to personal leave with evidence, which preserves the long service balance.

Long service leave in your final pay

When employment ends, any long service leave you are entitled to is paid as part of your final pay rather than separately. It sits alongside unused annual leave, outstanding wages, and notice or redundancy where they apply. Work the whole amount out on the final pay calculator, or see termination pay for how the components fit together.

Two things change the number. Superannuation is generally not payable on a long service leave payout, because the ATO does not treat it as ordinary time earnings, and the withholding rate depends on why the employment ended. A payout tied to a genuine redundancy is taxed concessionally, while an ordinary resignation is taxed at your marginal rate. Neither changes the gross figure the calculator produces above; both change what lands in your account.

The ACT catch worth knowing

The ACT and Victoria are the only jurisdictions where the full entitlement arrives at 7 years. For ACT workers the practical effect is that the conditional 5-to-7-year window is short, and most people simply reach the unconditional 7-year mark. Living in Queanbeyan does not change this: what matters is where the employment is based, not where you sleep.

Construction workers: your service may be portable

If you work in building and construction, the continuous-service rule above may not be the one that applies to you. Australian Capital Territory runs a portable long service leave scheme where service accrues with the industry rather than a single employer, so moving between builders does not reset the clock. See portable long service leave and our ACT portable scheme guide. You cannot be paid twice for the same period of service.

Where to check your own entitlement

Australian Capital Territory long service leave is administered by ACT Government, Long service leave, which is the authority of record for disputes and for any figure you intend to rely on. The calculator above estimates your balance under the Long Service Leave Act 1976 (ACT); where a number decides whether you resign or wait, confirm it with the authority or the Fair Work Ombudsman first.