Question 1

How is annual leave payout calculated?

Accepted Answer

Your annual leave payout equals your daily rate multiplied by the number of accrued leave days. The daily rate is your annual salary divided by 52 weeks, then divided by 5 days. If your award includes 17.5% leave loading, this is added on top.

Question 2

Is annual leave payout taxed?

Accepted Answer

Yes. Annual leave payouts on termination are taxed as part of your regular income at your marginal tax rate. They are not subject to the same concessional rates as genuine redundancy payments.

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