Document ID: chunk:federal_register_of_legislation:F2024L00664:clause:7_7
Version: federal_register_of_legislation:F2024L00664
Segment Type: clause
Provision Reference: sch 7 cl 7
Character Range: 168445–170140

7     Multiply the amount at step 6 by the number of normal pay periods in 12 months ($68 × 52)            $3,536

The amount to be withheld from the three components of Sandra's unused long service leave payments is $6,000 ($2,464 + $3,536). See the section in this schedule above 'Rounding of withholding amounts'.

The total amount to be withheld from payments made to Sandra upon her retirement in her final pay week is $6,193 ($193 withholding from normal earnings plus $6,000 withholding from unused long service leave).

Withholding variations

If an employee has a withholding variation in effect when unused leave payments are made, the rate specified on the variation notice will only apply to the unused leave payments if the notice includes unused leave payments. Otherwise, the rates in this schedule apply. This includes using the regular tax table per pay period for the marginal rate calculation, and not the varied withholding rate.

When a TFN has not been provided

If your employee who is receiving the unused leave payments has not provided you with their TFN before the payment is made, you must withhold 47% from the payment.

If your employee is a foreign resident who has not provided you with their TFN, you must withhold 45% from the payment.

If your employee believes that for their circumstances the amount you withhold will be too much, they may apply for a variation to reduce the amount of withholding.

Tax file number (TFN) declaration

Any Tax file number declaration your employee provides while they were working for you will only be effective:
    * for the period that they were working for you, or
    * 12 months after you make the last payment.