Deadline Looming For Participation In Coal Long Service Leave Repayment Scheme

Employers in the mining services industry with potential historical liabilities under the Coal Long Service Leave (LSL) Scheme have only a short window to opt into the voluntary repayment scheme, with the deadline of 2 November 2026 fast approaching.

Who does this impact?

Businesses that have had employees working on a black coal mine site at any time over the past 16 years may have exposure to historical non-compliance with the Coal LSL scheme.

The Scheme is an industry-based portable LSL scheme that covers employees working on black coal mines whose duties are “directly connected with the day-to-day operation” of the mine. Under the scheme, employers are required to pay levies for each eligible employee, with the funds pooled and used to reimburse employers at the time when long service leave is taken.

A series of Court decisions have identified that there are likely many employers who have incorrectly assumed they are not covered by the Scheme and who may have historical liabilities arising from their non-participation.

What is the repayment scheme?

In response to concerns about inadvertent non-compliance and the significant historical liabilities potentially faced by employers, the Coal Mining Industry (Long Service Leave) Legislation Amendment Act 2026 was passed earlier this year, introducing a repayment scheme to address those issues.

Under the repayment scheme, employers can effectively self-report themselves by opting in to the scheme, which allows them to:

• pay 80% of their historical unpaid levy liabilities (with repayment to be made over a 6-year period);
• once 80% of the liability is paid, the remaining 20% liability will be waived;
• avoid additional levy charges that would otherwise apply to historical liabilities; and
• receive protection from civil penalties relating to historical reporting failures; and 
• have prior LSL payments already made to employees taken into account when calculating the amount payable, thereby avoiding ‘double-dipping’ by employees.

Importantly, there is no 6-year limitation period in respect of unpaid levies, so the historical liabilities for some businesses may be significant.

Critical deadline: 2 November 2026

Businesses wishing to participate in the repayment scheme must lodge a Notice of Intention with Coal LSL by 2 November 2026.

Lodging a Notice of Intention does not, of itself, constitute approval of an arrangement or determine the amount of any historical liability. Rather, it preserves the employer’s ability to participate in the Scheme and proceed to the next stage of preparing and submitting a proposed Unpaid Levy Payment Arrangement within the applicable timeframe.

The Notice of Intention is a basic document and does not create any payment obligation. However, employers who fail to lodge a Notice of Intention by the deadline may lose access to the Unpaid Levy Payment Arrangement process, unless Coal LSL grants an extension.

What should businesses do now?

Businesses that may fall within the scope of the Coal LSL Scheme should urgently seek advice to understand whether they should lodge a Notice of Intention.

Australian Business Lawyers & Advisors are currently assisting a range of clients to assess potential Coal LSL coverage, determine which employees may be eligible under the scheme, and manage engagement with Coal LSL throughout the process.

Have questions?

Get in touch with our expert team at info@ablawyers.com.au if you require further advice regarding the Scheme and its potential impact on your business.