What is the tax rate for Long Service Leave as part of Redundancy package

 Author: EthanATO(Community Support)Community Support

14 Oct 2021

Hi @Gondevski, 1. The rate your long service leave is taxed depends on a couple of factors: the specific reason your payout is occurring, and when the leave was accrued. Without knowing a bit more information we can't give you a simple rate that should apply. I'll include the link below below for you to go through and calculate this. 2. To contribute this directly to your super as a concessional contribution is would need to be done as a salary sacrifice arrangement. The issue is that you would've needed to set the arrangement up prior to accruing the leave. Salary sacrifice arrangements need to be in place prior to earning or accruing the entitlement. Links: - Tax on LSL payout: https://www.ato.gov.au/Forms/Withholding-from-unused-leave-payments-on-termination-of-employment/?anchor=Whytheemployeeisleaving#Whytheemployeeisleaving