How long service leave works in Australian Capital Territory
Under the Long Service Leave Act 1976 (ACT) leave accrues at 1/5 of a month per year of service (about 0.87 weeks a year). At 7 years you are fully entitled — 6.0667 weeks — and on ceasing employment after 7 years the accrued credit is paid out whatever the reason, including to your estate on death.
Between 5 and 7 years a pro-rata payment applies only for: illness, incapacity, or domestic or other pressing necessity; reaching minimum retiring age (your award age, or 65); death; or employer-initiated termination short of serious and wilful misconduct (redundancy qualifies). An ordinary resignation at, say, 6 years pays nothing.
Casuals with regular and systematic engagements are covered. If you moved from full-time to part-time or casual within the 2 years before your entitlement, the ACT protects you: your payout salary is averaged over the previous 5 years instead of your reduced recent pay. Construction, cleaning, community-sector and security workers are under the separate ACT Leave portable schemes.
What sets the Australian Capital Territory apart
The ACT is the quickest place in Australia to reach long service leave. The full entitlement arrives at 7 years rather than 10, and after that any ending of employment, including an ordinary resignation, pays the accrued credit.
Below 7 years the ACT adds a second, restricted tier. From 5 to 7 years a pro-rata payment is available, but only for listed exits: illness, incapacity or pressing necessity, reaching minimum retiring age, death, or an employer termination short of serious and wilful misconduct.
Worked example, step by step
Made redundant after 5 years 6 months on $1,800 a week.
- Service: 5 years 6 months of continuous employment.
- Accrual rule in the Australian Capital Territory: one-fifth of a month per year of service (6.0667 weeks at 7 years).
- Leave accrued: 4.77 weeks.
- Payable on this exit? Yes. Redundancy is an employer termination short of misconduct, so it qualifies for the ACT 5-to-7-year tier. An ordinary resignation at the same point would pay nothing.
- Gross payout: 4.7667 weeks × $1,800 = $8,580 before tax.
Worked examples
| Scenario | Accrued | Payable? | Gross value |
|---|---|---|---|
| Resigned at 7 years 6 months on $1,850/week | 6.5 wks | Yes | $12,025 |
| Redundant at 6 years on $1,850/week | 5.2 wks | Yes | $9,620 |
| Resigned at 6 years on $1,850/week | 5.2 wks | No | — |
| Retired at minimum retiring age at 6 years on $1,850/week | 5.2 wks | Yes | $9,620 |
| Dismissed for serious misconduct at 9 years on $1,850/week | 7.8 wks | Yes | $14,430 |
Casuals, part-timers and changing hours
Casuals are expressly covered in the ACT where they were offered regular and systematic work with a reasonable expectation that it would continue. Part-time and casual employees are paid on their average weekly hours over the 12 months before the entitlement or the end of employment.
The ACT also protects people who cut back their hours late in their career. If you moved from full-time to part-time or casual work in the 2 years before your entitlement, your salary is averaged over the previous 5 years instead of using the reduced recent pay. Public servants are outside the Act, and construction, contract cleaning, community-sector and security workers accrue portable leave with ACT Leave instead.
Common mistakes in the Australian Capital Territory
- Using the 10-year milestone from other states. The ACT entitlement is complete at 7 years.
- Assuming 5 to 7 years always pays. It pays only for the listed exits, not an ordinary resignation.
- Using reduced part-time pay after a recent drop in hours. The 5-year averaging rule may give a higher figure.
How the payout is taxed
Long service leave paid out when you leave is taxed separately from your wages. On a genuine redundancy, leave accrued after 17 August 1993 is withheld at a flat 32%; on a resignation or ordinary dismissal it is taxed at your marginal rate. The final pay calculator applies the right treatment, and the redundancy tax guide explains the rules.
Frequently asked questions
How long until long service leave in the ACT?
Just 7 years — the shortest qualifying period in Australia. You get 6.0667 weeks of paid leave, and it keeps accruing at 1/5 of a month per year after that.
What happens to ACT long service leave when I quit?
After 7 years: paid out in full whatever the reason. Between 5 and 7 years: only pressing-necessity resignations, retirement age, death, redundancy or other employer terminations qualify.
I dropped to part-time — does that shrink my ACT payout?
Not if the change was within the 2 years before your entitlement: the Act averages your salary over the previous 5 years, protecting the payout your full-time years earned.
Which ACT workers have portable long service leave?
Construction, contract cleaning, community sector and security workers accrue portable LSL with ACT Leave (actleave.act.gov.au) rather than under the standard Act.
What is minimum retiring age for ACT long service leave?
The retiring age in your award, or 65 if there is none. Reaching it between 5 and 7 years of service qualifies for the pro-rata tier.
Are regular bonuses included in ACT LSL pay?
Yes, where they were regularly paid. ACT ordinary remuneration includes salary or wages, skill and qualification allowances, board and lodging allowances and regularly paid bonus or incentive amounts, but not overtime or award penalty allowances.
Verify with the official authority
Australian Capital Territory long service leave is governed by the Long Service Leave Act 1976 (ACT), republication R29 (eff. 19 Nov 2025). The official authority is WorkSafe ACT (13 22 81) — verify your specific situation there before acting, especially where continuity (breaks, business sales, parental leave) is in play.
Other states and tools
- New South Wales LSL calculator
- Victoria LSL calculator
- Queensland LSL calculator
- Western Australia LSL calculator
- South Australia LSL calculator
- Tasmania LSL calculator
- Northern Territory LSL calculator
- Pro-rata rules in every state
- Long service leave for casuals — continuity rules compared
- Final pay calculator — combine LSL with notice and leave
Sources
Figures on this page come from the following primary sources. The date is when we last checked the page against the source.
- Long Service Leave Act 1976 (ACT) (ACT Legislation Register), checked 7 August 2026.
- Long service leave (ACT) (WorkSafe ACT), checked 7 August 2026.
Rules last verified 2026-08-07. Estimates only. Independent guide — not a government service, and not financial or legal advice.