Understanding additional levies: What employers need to know

REGULATORY UPDATE

As the regulator of the Coal Mining Industry (Long Service Leave) Scheme, we’re committed to supporting legislative compliance and ensuring employers understand their obligations under the legislation. Each year we publish our regulatory priorities, giving stakeholders clear visibility of the areas we will focus on to drive voluntary compliance across the Scheme. Our Regulatory Priorities 2025/26 for 2025/26 are published on our website and guide the key activities outlined in our Coal LSL Corporate Plan 2025-26. In line with these regulatory priorities, the additional levy penalty will come into effect for late levy payments on all monthly returns from January 2026. The January 2026 levy return payment is due on or before the 28 February 2026.

What does this mean for employers

If employers fail to pay their monthly levies on time, they will incur a penalty as per section 7 of the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992, by way of an additional levy. This additional levy will be charged at a rate of 2% p.a. (calculated daily), for each day the payment is late. For the January 2026 return the additional levy will be applied to levy payments outstanding from 1 March 2026. As part of our ongoing engagement, employers will be informed when the charging of additional levies has commenced and the total penalty payable will be communicated, once the monthly levy payment has been received by Coal LSL.

Proposed future changes to the additional levy rate

The Federal Government recently introduced the Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2025 (the Bill) to the House of Representatives. The Bill proposes changing the current penalty rate of additional levies to a rate connected to the Reserve Bank of Australia’s cash rate. Should the Bill be passed, we will advise you of the new rate and its effective date.

We’re here to help

To assist employers in understanding their obligations and provide guidance around additional levies, we’ve developed helpful FAQs. The easiest way to avoid this penalty is for employers to process their levy payments before the 28th of each month. We recommend setting a reminder a few weeks before the 28th to ensure there is enough time to lodge a Levy Advice Form and make payment. If you have further questions or need personalised support, email or call 1300 852 625, Monday to Friday from 8:30am - 5:00pm (AEST).