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  • Leaving your job

    When you leave a job the tax on payments you receive may be different to your normal income. This depends on the reason for leaving and type of payments.

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    Reasons for leaving your job

    You may leave your job as the result of termination or redundancy. In these circumstances, payments you receive are:

    Tax on unused entitlements when you leave a job

    The tax you pay on unused leave, termination of employment or redundancy payments may be different to the tax you pay on your normal income. The tax you pay depends on both:

    • the reason for leaving the job
    • any unused entitlements you may have accrued, such as long service leave or sick leave.

    If you receive any lump sum payments from your employer for unused annual leave or long service leave, you may pay tax at a lower rate than your other income. These lump sum payments will appear at either 'Lump sum A' or 'Lump sum B' on your income statement or payment summary.

    Last modified: 20 Apr 2022QC 27125