Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2025

# Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2025 ## What it does This bill changes how interest is calculated on money held in the long service leave scheme for black coal miners. Instead of using a fixed percentage, the interest rate will now be set at 2 percentage points above the Reserve Bank's cash rate, which moves up and down with economic conditions. The bill also updates the legislation to handle cases where the Reserve Bank might stop using its current cash rate system in the future. ## Why it matters Coal miners' long service leave entitlements are held in a central fund, and the interest earned on that money helps top up their payouts when they take leave or retire. By linking interest to the cash rate, the scheme will automatically adjust when interest rates change—meaning miners get more when rates are high and less when they're low, rather than getting stuck with an outdated fixed rate. ## Key details - **How it's calculated**: Interest becomes 2 percentage points above whatever the Reserve Bank's main interest rate is at any given time - **Timing**: Most changes take effect the day after the bill passes parliament, with some adjustments coming in two months later - **Flexibility clause**: If the Reserve Bank changes its system, the government can update the regulations to use a different interest rate instead of letting the scheme become obsolete