Accrued annual leave
Payment type | Assessable | Maximum tax rate |
Resignation/retirement |
|
|
To 17 August 1993 | 100% | 30%* |
From 18 August 1993 | 100% | Marginal tax rate* |
Genuine redundancy/invalidity/early retirement | 100% | 30%* |
Accrued long service leave
Payment type | Assessable | Maximum tax rate |
Resignation/retirement |
|
|
To 15 August 1978 | 5% | Marginal tax rate* |
16 August 1978 – 17 August 1993 | 100% | 30%* |
From 18 August 1993 | 100% | Marginal tax rate* |
Genuine redundancy/invalidity/early retirement |
|
|
To 15 August 1978 | 5% | Marginal tax rate* |
From 16 August 1978 | 100% | 30%* |
- Plus Medicare
The unused annual/long service leave amounts are added to the taxpayer’s assessable income. The taxpayer receives a tax offset to ensure the effective tax rate does not exceed the maximum rate shown above.
Genuine redundancy payments
The tax-free portion of a genuine redundancy payment is calculated outlined in the table below. An amount above the tax- free portion is an Employment Termination Payment.
2018/19
2019/20
$10,399 plus $5,200 for every completed year of service
$10,638 plus $5,320 for every completed year of service
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