Long Service Leave After 7 Years — State-by-State Guide

Seven years of continuous service is a significant milestone for long service leave in several Australian states and territories. While the 'standard' long service leave entitlement is typically 8.667 weeks (2 months) after 10 years of continuous service, several states allow employees to access pro-rata long service leave after just 7 years — either by taking the leave or by receiving a payment if their employment ends. Put simply, the difference between 7 and 10 years of service can be worth thousands of dollars if you leave your employer.

Understanding your state's specific rules is essential, because long service leave is governed by state and territory legislation, not the NES.

Victoria: After 7 years, you can take pro-rata long service leave (calculated as 1/60th of your total period of employment per year). You can also receive a pro-rata payout if your employment ends after 7 years for any reason. ACT: Similar to Victoria — pro-rata access after 7 years of continuous service.

Queensland: Pro-rata payment on termination after 7 years, but you generally can't take the leave until 10 years. South Australia: Pro-rata payout on termination after 7 years (was previously 10, reduced to 7 from 2024).

New South Wales: 10 years required for the full entitlement. Pro-rata payment on termination only after 5 years in certain circumstances (resignation after 5 years, or termination by employer after 5 years).

Western Australia: 10 years for full entitlement.

Pro-rata payout on termination after 7 years if terminated by employer.

Tasmania: 10 years. Pro-rata on termination after 7 years in some circumstances.

Northern Territory: 10 years for full entitlement (and yes, this applies to casuals too).

The standard entitlement is 8.667 weeks (2 months or 60 working days) for 10 years of continuous service in most states. After 10 years, leave accrues at the rate of approximately 0.867 weeks per additional year. Pro-rata after 7 years means you receive 7/10 of the 10-year entitlement: approximately 6.067 weeks.

This is worth knowing. For a full-time employee earning $1,200 per week, pro-rata long service leave after 7 years is worth approximately $7,280. After 10 years, the full entitlement is worth approximately $10,400.

Some states and industries provide more generous entitlements — for example, the building and construction industry in several states provides long service leave after 7 years through portable schemes.

In most states, you can't cash out long service leave while still employed — you must actually take the leave. The exception is when your employment ends (by resignation, termination, or redundancy), in which case your accrued long service leave is paid out as a lump sum. Some states allow partial cashing out by agreement.

When paid as a lump sum on termination, long service leave is taxed differently depending on whether it accrued before or after 16 August 1978 (a historical tax law change). Post-1978 accrued leave is taxed at your marginal tax rate.

If paid on genuine redundancy, the first portion may be tax-free under the genuine redundancy tax-free limit.

If your employment ends after reaching the relevant threshold in your state (7 or 10 years depending on the state), you are entitled to a pro-rata payout of your accrued long service leave. This applies whether you resign, are terminated, or are made redundant. In states where the threshold is 10 years, termination by the employer (including redundancy) after 7 years may still trigger a pro-rata payout — check your state's specific legislation.

Long service leave payouts are separate from redundancy pay and notice period pay. They can't be used to offset each other.

Don't gloss over this. If you're dismissed for serious misconduct, some states allow employers to withhold long service leave payments — but this varies and is often contested.