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MarNew(Initiate)Initiate
19 May 2023

In relation to a redundancy payout with exit date before 30June and for amounts related to unused leave, and therefore taxed. I would like to know, that if the employer agrees to pay the employee for those amounts post 30 June, can the employee declare these amounts as income for the next financial year, or would it be included in the current financial year since the employer may include it in the payout summary for this year. Just looking for possible options to reduce the impact on current year for the employee.


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468 views
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DanielleATO(Community Support)Community Support
22 May 2023

Hi @MarNew,


If the payments were to be made after 30th June, then yes. They would fall into the next financial year.


When it comes to your employee’s redundancy payout and unused leave payments. They are reported in the income tax return in the financial year they receive the payment. If they are paid after the 30th of June, they would then fall into the next financial year.

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Most helpful reply

DanielleATO(Community Support)Community Support
22 May 2023

Hi @MarNew,


If the payments were to be made after 30th June, then yes. They would fall into the next financial year.


When it comes to your employee’s redundancy payout and unused leave payments. They are reported in the income tax return in the financial year they receive the payment. If they are paid after the 30th of June, they would then fall into the next financial year.

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Tax impact on payment timing for redundancy pay outs for unused leave balances | ATO Community