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Long Service Leave

Newbie

Views 165

Replies 3

Hi everyone,

Would appreciate information on tax implications or benefits if taking LSL and Annual Leave over a period of 18 months at half pay.

 

  • I presume that since my wages will be halved (across the 18 months) I will also be taxed less?
  • This period will run from January 2022 until June 2023 and I will be bracketing LSL with annual leave.
  • For the tax year 2021/22 I think I'll be taxed the normal rate for the July - December 2022 period of 6 months, and then for the remaining 6 months of the 2021/22 tax year less since my wages will be 50% less for that period.
  • Could you see if my assumptions are correct?
  • Where can I see a tax table to calculate how much tax I'll be paying on a 2/3rd portion of my wages?

Thanks!

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 2

Hi @BWalt,

 

If you are a continuing employee then the tax for your LSL and Annual Leave payments will be taxed according to the normal tax tables for each pay period.

 

You can use the tax withheld calculator to determine the amount of tax that will be withheld from each pay period.

 

Links

tax withheld calculator

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hi @BWalt,

 

If you are a continuing employee then the tax for your LSL and Annual Leave payments will be taxed according to the normal tax tables for each pay period.

 

You can use the tax withheld calculator to determine the amount of tax that will be withheld from each pay period.

 

Links

tax withheld calculator

Newbie

Replies 1

Hi, thanks for your response. Tax will be as per paid wages which will be halved, right?

ATO Community Support

Replies 0

Hi @BWalt,

 

You will only be taxed on the income you receive. If you receive half your regular wage, say $30,000 instead of $60,000, you will be taxed on $30,000. 

 

As advised by @RenATO above, this $30,000 will  be taxed according to the normal tax tables for each pay period.