Show download pdf controls
  • Leave loading changes

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    There is no longer a separate withholding scale for payees who are entitled to leave loading and they will no longer have higher withholding from every pay. These payees will now be taxed more accurately when the leave loading is paid.

    Previously, the leave loading scale provided for extra withholding throughout the year to allow $320 of leave loading to be tax-free when paid.

    If you pay leave loading as a lump sum, you now need to use Tax table for back payments, commissions, bonuses and similar payments (NAT 3348)(2012-13) and Tax table for back payments, commissions, bonuses and similar payments (NAT 3348)(2013-14) to calculate withholding.

    If you pay leave loading on a pro-rata basis, then add the leave loading payment to earnings for the period to calculate withholding. That is, instead of the one lump sum payment, you make multiple payments during the year when leave is being taken.

    Last modified: 14 Jun 2013QC 25921