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PayrollDeanne(Taxicorn)Taxicorn
30 Apr 2026

G'day @Melia19 👋


So you don't yet have pro-rata entitlement to LSL but your employer has agreed to pay you an ex-gratia amount that is the same amount as the LSL pro-rata?


Yes, generous employers sometimes do this 🤓


An ex-gratia is an ETP, taxed at 32% or 17%, depending on your age in comparison to the preservation age. There is no super guarantee payable on ex-gratia payments (like there wouldn't be on unused LSL on termination). It would be reported on your income statement as an ETP Type O 😉


It cannot be paid as unused LSL on termination as you have no entitlement to LSL


Deanne

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RE: Can an organisation make an ex gratia payment equivalent to long service leave not yet due | ATO Community