We withhold tax from your long service leave payments in line with ATO guidelines. The amount withheld will show on your end of financial year income statement in your myGov account.

Weekly marginal tax rates will be used for most portable long service leave payments, similar to the tax on your average weekly wage. To estimate the amount of tax to be withheld from your long service leave payment, please refer to the weekly tax table located on the ATO website.

Lump sum payments for long service leave on termination of employment will be taxed at different rates, depending on your service accrual dates and whether the termination is because of genuine redundancy, invalidity, or an early retirement scheme. Please refer to the Schedule 7 – tax table for unused leave payments on termination of employment located on the ATO website.

In line with ATO guidelines, we do not withhold income tax on the contractor component of a long service leave claim. Contractors should seek independent advice on the tax implications of the refund of contractor contributions and interest.