Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:7:p1
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 7 (pt 1/3)
Character Range: 160151–164769

Schedule 7 – Tax table for unused leave payments on termination of employment

This schedule applies to withholding payments covered by section 12-90 of Schedule 1 to the TAA.

The amounts, formulas and procedures in this schedule were last updated on 1 July 2024.

Using this schedule

Use this schedule if you pay an amount to an employee for unused leave on the termination of their employment or office.

Unused leave payments on termination of employment or office include:
    * annual leave
    * holiday pay
    * leave loading
    * leave bonuses
    * long service leave.

Before calculating the amount to be withheld, you must work out if the payments are being made as a result of a genuine redundancy, invalidity or an early retirement scheme.

If you employ individuals under a working holiday makers visa, you must use Schedule 15 - Tax table for working holiday makers for all payments made to them, including unused leave payments on termination of employment.

Working out the withholding amount

When a TFN is provided

The amount to withhold is calculated using the table below.

If the post-17 August 1993 lump sum payment from normal termination is less than $300, you must withhold the lesser of the following:
    * the amount worked out using the table below
    * 32% of the payment.

Withholding amounts for long service leave, annual leave and annual leave loading
Payment type                                                                      Reason                                                                                                  Accrual dates                  Withholding rates              Payment summary label or equivalent in STP
Long service leave                                                                Normal termination (e.g. voluntary resignation, employment terminated due to inefficiency, retirement)  Pre-16 August 1978             5% of total at marginal rates  B
16 August 1978 to 17 August 1993                                                  32%                                                                                                     A
Post-17 August 1993                                                               Marginal rates                                                                                          Include in salary/wages
Termination because of genuine redundancy, invalidity or early retirement scheme  Pre-16 August 1978                                                                                      5% of total at marginal rates  B
16 August 1978 to 17 August 1993                                                  32%                                                                                                     A
Post-17 August 1993                                                               32%                                                                                                     A
Annual leave                                                                      Normal termination (e.g. voluntary resignation, employment terminated due to inefficiency, retirement)  Pre-18 August 1993             32%                            A
Post-17 August 1993                                                               Marginal rates                                                                                          Include in salary/wages
Termination because of genuine redundancy, invalidity or early retirement scheme  Any date                                                                                                32%                            A
Annual leave loading                                                              Normal termination (e.g. voluntary resignation, employment terminated due to inefficiency, retirement)  Pre-18 August 1993             32%                            A
Post-17 August 1993                                                               Marginal rates                                                                                          Include in salary/wages
Termination because of genuine redundancy, invalidity or early retirement scheme  Any date                                                                                                32%                            A

Rounding of withholding amounts

Withholding amounts calculated using this table are rounded to the nearest dollar. Results ending in 50 cents or higher are rounded upwards. If a TFN is not provided, ignore cents when calculating withholding amounts.

Marginal rate calculation

To work out the marginal rate, you must:

   1.