When you leave a job, unused annual and long service leave is paid out — and taxed. See what you keep, and how a genuine redundancy changes the rate.
1
Your details
This is a genuine redundancy
2
What you keep
Leave payout after tax
$0
Gross leave payout
Tax on the payout
Effective rate on leave
You keep
Common questions
How is unused leave taxed when I resign?
Unused annual and long service leave paid on resignation is taxed at your marginal rate, added on top of your salary for the year. A large payout can be taxed at a high rate if it pushes your income up.
Is leave taxed differently in a redundancy?
Yes. On a genuine redundancy, unused annual and long service leave gets a concessional treatment — the rate is capped at 30% plus the Medicare levy (32%), which can be lower than your marginal rate.
Is my leave payout the same as redundancy pay?
No — they are separate. Redundancy pay has its own tax-free treatment; unused leave is taxed under its own rules. This tool covers the leave; use our redundancy calculator for the redundancy payment.
Why is so much tax taken from my payout?
Because a lump-sum payout is added to your income for the year and can be taxed at your top marginal rate. If your employer over-withholds, you may get some back at tax time.