Statement from Innes Willox, Chief Executive of the national employer association, Australian Industry Group
Australian Industry Group welcomes Parliament's approval today of the Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2025.
The Bill varies the legislation that regulates the operation of the coal mining industry long service leave scheme. Employers are required to pay a levy of 2.7% on the eligible wages of employees covered by the scheme.
Many employers that provide services to coal mining companies have been unexpectedly faced with very significant historical levy debts due to widely recognised uncertainty that has existed regarding the coverage of the scheme, particularly businesses that provide maintenance services on coal mining sites. Many of the impacted businesses are members of Australian Industry Group.
There is now more clarity about the coverage of the long service leave scheme due to a December 2024 judgment of the Full Court of the Federal Court of Australia in a case relating to Hitachi Construction Machinery (Australia) Pty Ltd – a member of Australian Industry Group.
The Bill provides a voluntary mechanism for employers with historical levy liabilities to obtain some relief from historical levy debts. The relief includes a timeframe of up to six years over which historical levy debts can be paid, the waiving of additional levy (which operates like penalty interest), and the remission of 20% of the levy debt once 80% of the debt has been paid.
The Bill followed a lengthy consultation process in which Australian Industry Group was heavily involved.
We recognise that the Bill needed to strike a balance between the interests of all parties and this balance was achieved in the legislation that has now been passed by Parliament.
We thank the Employment and Workplace Relations Minister Amanda Rishworth and her predecessors Murray Watt and Tony Burke for their attention to this issue which has significant financial implications for many businesses.
We also thank the Opposition and the other members of Parliament who supported the Bill.
Finally, we thank the Senate Education and Employment Committee whose inquiry into the Bill led to some important amendments that will improve the workability of the legislation.
Media Enquiries:
Gemma Daley – 0418 148 821
