Wondering what the tax rate is on a Long service leave payout when I am continuing with the employer

Question

PayrollDeanne · Accepted Answer

Cashout of leave in service is marginally taxed, as per this ATO guidance (https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/payments-you-need-to-withhold-from/payments-to-employees/withholding-from-leave-payments-for-continuing-employees). It's at the bottom of the page and also has a link to take you to the tax table that explains how marginal tax works. Marginal tax is like the payment is spread over the financial year and added to the pay you've received to determine how much extra tax you would have paid. Deanne

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