Annual Leave Payout Calculator — Australia
Cash value of unused annual leave with 17.5% loading and long service leave on termination, tax withheld at marginal rates or the 32% redundancy rate, and the net amount.
| Daily rate | — |
|---|---|
| Annual leave | — |
| Leave loading | — |
| Long service leave | — |
| Tax withheld | — |
| Net payout | — |
| Super on the payout | — |
| Leave accrual check | — |
In short
Unused annual leave is paid out in full on termination at the base rate plus 17.5% loading where the award provides it — 22 days on an $85,000 salary is $7,192 plus $1,259 loading, $8,451 gross — taxed at marginal rates on resignation (about $2,256 stacked on $40,000 of year-to-date income) or a flat 32% on genuine redundancy, with no super payable on the payout.
Who this is for: Employees resigning or made redundant who want the value of their leave balance and the tax on it, and payroll staff checking final pays.
What unused leave is worth when you leave a job
Every full-time employee in Australia accrues four weeks of annual leave a year (20 days, five weeks for shift workers), and when employment ends the unused balance is paid out at the base rate you would have earned had you taken it — plus 17.5% leave loading if your award or enterprise agreement provides it. Long service leave (typically 8.67 weeks after 10 years, pro rata after 7 in most states) is paid out too. Super is not payable on these termination payouts.
Tax depends on why you leave: on resignation the payout is added to your income and withheld at marginal rates (the calculator uses your year-to-date income and the 2026–27 scale), whereas on a genuine redundancy or invalidity it is withheld at a flat 32%. A large payout can push you into a higher bracket, which is one reason to take leave before finishing rather than cash it out.
See also: Redundancy Pay Calculator — Australia (NES & Tax), Pay Calculator Australia 2026–27, Australian Income Tax Calculator 2026–27, Superannuation Calculator 2026–27.
Assumptions
- Daily rate = annual salary ÷ 52 ÷ 5; hourly = weekly ÷ ordinary hours.
- Annual leave days × daily rate, plus 17.5% loading when selected; LSL weeks × weekly rate.
- Resignation: tax = 2026–27 tax on (year-to-date income + payout) minus tax on year-to-date income; redundancy/invalidity: flat 32%.
- No super on the payout; part-time pro-rating and pre-1993 leave not modelled.
Worked example
Daily rate $326.92. Annual leave 22 days = $7,192 + loading $1,259 = $8,451 gross. Stacked on $40,000 of year-to-date income it straddles the 15% and 30% brackets (plus Medicare and the LITO taper) → tax about $2,256; net about $6,195. No super is payable on the payout. On a genuine redundancy the withholding would instead be 32% = $2,704.
Frequently asked questions
Is unused annual leave paid out when I resign?
Yes — all accrued annual leave must be paid with your final pay, including loading if your award or agreement provides it.
Is leave loading paid on termination?
If your award, agreement or contract pays loading on leave taken, it must be paid on the leave paid out at termination.
Is super paid on a leave payout?
No. Super is payable on annual leave taken during employment but not on unused leave paid out on termination.
How is the payout taxed?
On resignation at marginal rates (withheld under ATO Schedule 7); on genuine redundancy or invalidity at a flat 32%. Leave accrued before 18 August 1993 has concessional treatment.
Can my employer make me take leave instead?
Only in limited cases (excessive balances, shutdowns) under the award; otherwise untaken leave must be paid out.
Is long service leave paid out?
Yes, if you have reached the state’s entitlement (usually 7–10 years); the amount and pro-rata rules depend on the state and the reason for leaving.
Does personal/sick leave get paid out?
No — unused personal (sick and carer’s) leave is not paid out on termination unless an agreement says so.
Can I ask for the payout in the next financial year?
The payment is taxed when paid; if your end date falls in late June, ask whether the final pay can be processed in July to spread the tax, though the employer must pay promptly.
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