NDS recently made a submission to the Victorian Portable Long Service Scheme review. Our submission was informed by extensive consultation with NDS members, who provided examples of the impact and costs of the Long Service Benefits Scheme on their organisations. Key issues raised include a lack of clarity around coverage (particularly of supported employees and managerial and administrative staff); the administrative complexities of implementation; the onerous reporting processes; inadequacy of communications; and the questionable cost-effectiveness of the scheme overall.
NDS argues that the Scheme is a cumbersome and administratively complex initiative, which adds to the cost and administrative burden of disability services. The scheme’s impact on cash flow is undermining the financial strength of services already under substantial pressure. We question if this costly Scheme is an effective strategy to address the significant issues relating to attraction and retention of sufficient, skilled disability workers.
NDS recommends that the Victorian Government undertake an independent assessment of the full cost-benefit of the PLSL scheme, its impact on employers, and its impact on the retention of Victorian community workers.
NDS also recommends the following measures to improve the scheme’s performance, reduce confusion among disability service providers, reduce processing times, and increase compliance:
- Provide unambiguous guidance on eligibility criteria, as well as guidance on the steps for employers in the case of under-registration.
- Reconsider the inclusion of managerial and administrative staff in the scheme.
- Provide unambiguous guidance on payouts that delineates the payout responsibilities of the PLSL Authority and the costs that employers need to cover themselves.
- Create standardised templates for providers to use in calculating pay that include the considerations above.
- Create a selection of standardised reporting templates based on different pay cycles and other payroll circumstances.
- Give employers access to relevant data and reports on the PLSLA portal for accounting and auditing purposes.
- Streamline administrative processes between PLSL scheme and existing legacy schemes to reduce administrative burdens.
- Increase and shift the tone of current communications to target new business owners in the sector and prospective employees; NDS will keep promoting the scheme to help reach all affected disability organisations.