ato logo
Search Suggestion:

Accrued leave

Learn what type of leave is not included in eligible termination payments and how this leave is treated.

Last updated 20 June 2024

Lump sum payments for unused annual leave and long service leave are not part of the employee's ETP. They are separately recorded on either the employee's:

  • income statement at lump sum A or B
  • PAYG payment summary – individual non-business.

These payments may be concessionally taxed. The tax rate depends on the type of termination, date of accrual and type of leave.

Next step:

For more information see: