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Annual Leave Payout Tax Calculator

Leaving a job with unused annual leave? See gross payout (with 17.5% loading), tax taken, and net take-home. Includes the concessional 32% redundancy rate vs marginal-rate for resignation.

Last verified: 16 May 2026

ANNUAL LEAVE PAYOUT — TAX TREATMENT

When you leave a job, your unused annual leave is paid out as a lump sum. How it's taxed depends on WHY you're leaving. Resignation/dismissal = marginal rate. Genuine redundancy = concessional 32% rate (often a much better outcome).

Your AL payout tax breakdown

Daily rate ($85,000/yr ÷ 260)$327/day
Gross leave (20 days × $327)$6,538
+ 17.5% leave loading+$1,144
Gross payout$7,683
Tax (32.0% effective rate)−$2,458
Net payout (after tax)$5,224

Tax treatment

Resignation / standard termination — AL payout added to your taxable income and taxed at your marginal rate. Often pushes you into a higher bracket for that financial year.

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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