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Long Service Leave Payout Calculator

Find out how much long service leave you are paid when your job ends, whether the reason you are leaving qualifies for pro-rata, and how much tax comes out of it.

Last verified: 26 September 2026

Long service leave paid on termination is not an ETP. Leave accrued after 17 August 1993 is taxed at your marginal rate, or a flat 32% on genuine redundancy or invalidity (ATO Schedule 7, from 1 July 2026).

The law of the state where you work when employment ends generally applies.

First day of continuous service. Service before 18 August 1993 is taxed differently.

Include any notice period you work. Pay in lieu of notice ends employment on the day you are told.

$

Base pay for your ordinary hours — no overtime or most allowances.

Before the full qualifying period, the reason decides whether anything is paid. For tax, redundancy and invalidity get a flat 32% on post-1993 leave.

weeks

Leave taken at full pay. Leave at half pay counts as half the weeks.

When is long service leave paid out before the full qualifying period?

After the full qualifying period, every state pays accrued long service leave when employment ends. Before it, the pro-rata window and the reason you leave decide whether anything is paid. Serious misconduct never qualifies.

StatePro-rata windowPlain resignationIllness / pressing necessityRetirement ageRedundancyDismissed (not serious misconduct)
NSW5–10 yrsNoYesNoYesYes
VICNone before 7 yrs—————
QLD7–10 yrsNoYesNoYesNo
SA7–10 yrsYesYesYesYesYes
WA7–10 yrsYesYesYesYesYes
TAS7–10 yrsNoYesYesYesYes
NT7–10 yrsNoYesYesYesYes
ACT5–7 yrsNoYesYesYesYes

Queensland: “Dismissed” means for conduct, capacity or performance, which does not qualify unless the dismissal was unfair or because of illness. Redundancy does. SA: resignation needs proper notice.

How much tax is taken from a long service leave payout?

The ATO taxes unused long service leave by the period it accrued in, then by why you left (Schedule 7, applies to payments from 1 July 2026). Your employer splits the payout by the days of service in each period.

AccruedResignation, dismissal, retirementGenuine redundancy, invalidity, early retirement scheme
Before 16 Aug 19785% of the amount, at marginal rates5% of the amount, at marginal rates
16 Aug 1978 – 17 Aug 199332%32%
After 17 Aug 1993Marginal rates32%

Long service leave is not an employment termination payment, so it does not use the ETP cap. If you also get redundancy pay, a settlement or pay in lieu of notice, work out the tax on those with the ETP Tax Calculator. To check your entitlement while you are still employed, use the Long Service Leave Calculator.

Sources

  • ATO, Schedule 7 – Tax table for unused leave payments on termination of employment (published 17 June 2026, payments from 1 July 2026).
  • Income Tax Assessment Act 1997 ss 83-80 and 83-85; ATO, Withholding from unused leave payments on termination (period apportionment by days).
  • NSW: Long Service Leave Act 1955 s4, NSW Government long service leave FAQs. VIC: Long Service Leave Act 2018, vic.gov.au. QLD: Industrial Relations Act 2016, Business Queensland.
  • WA: Long Service Leave Act 1958 s8. SA: Long Service Leave Act 1987 s5. TAS: Long Service Leave Act 1976 ss 2, 8. ACT: Long Service Leave Act 1976 ss 3, 4, 11A, 11C. NT: Long Service Leave Act 1981 ss 8, 10.

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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.