Consider someone who were to leave their job half-way through the financial year and go travelling for 6 months (so they don’t earn any income for the second half of the financial year).
If they were to have their accrued annual leave cashed out (i.e. 8 weeks), is it correct that tax will be withheld at one’s marginal tax rate? Then, at the end of the financial year, the leave payout is treated no differently from any other income?
I have seen information that suggests that this leave will be taxed at 30% at the end of the FY. Or is this only the withholding rate, and the leave is actually lumped together with all other income when the tax return is completed?