The four things a final pay can include
When employment ends, the money owed usually comes from up to four separate entitlements. Each has its own rules about who gets it, and each is taxed differently. Working out which ones apply to you is most of the job.
- Notice, or pay in lieu of notice. The National Employment Standards set a minimum of 1 to 4 weeks depending on service, plus an extra week if you are over 45 with at least 2 years' service. Casuals are not entitled to notice. See notice and pay in lieu.
- Unused annual leave. Paid out at your ordinary rate, plus leave loading if you would have received it when taking the leave. See unused annual leave on termination.
- Redundancy pay. 4 to 16 weeks under the NES if you have at least a year's service with an employer of 15 or more employees, dropping to 12 weeks from 10 years. On a genuine redundancy, $13,598 plus $6,801 per completed year is tax-free in FY 2026–27.
- Long service leave. Set by state law, not the NES, so the amount and whether you get it on resignation depend on where you work. See pro-rata rules in every state.
Three worked examples
Redundancy after 8 years on $1,800 a week
A 45-year-old made genuinely redundant after 8 years with a large employer is owed 14 weeks of NES redundancy pay: $25,200. The tax-free limit for 8 completed years is $68,006, so the whole payment is tax-free and the redundancy component lands in full. The redundancy calculator adds unused leave, ex-gratia amounts and age-based rates.
Resigning after 8 years: long service leave by state
The same resignation, for an ordinary reason such as a new job, on $1,800 a week, produces very different long service leave outcomes depending on the state:
| Jurisdiction | Accrued | Paid on resignation? | Gross |
|---|---|---|---|
| New South Wales | 6.9 wks | No | — |
| Victoria | 6.9 wks | Yes | $12,480 |
| Queensland | 6.9 wks | No | — |
| Western Australia | 6.9 wks | Yes | $12,480 |
| South Australia | 10.4 wks | Yes | $18,720 |
| Tasmania | 6.9 wks | No | — |
| Australian Capital Territory | 6.9 wks | Yes | $12,480 |
| Northern Territory | 10.4 wks | No | — |
If the same person had been made redundant instead, every state would pay. That single rule, who ended the job and why, is where most long service leave disputes start.
Dismissed after 6 years at age 50
Someone dismissed (not for misconduct) after 6 years at age 50 on $1,600 a week, with 4 weeks of annual leave banked and a 17.5% loading, is owed 5 weeks' notice: 4 weeks for more than 5 years' service plus the over-45 week. If the notice is paid out rather than worked, the final pay comes to about $15,520 gross and $10,554 after withholding. The final pay calculator itemises it like a payslip.
Before you sign or resign: a quick checklist
- Confirm your continuous service start date. Every entitlement here turns on it.
- Check which state or territory's long service leave law covers you, and its rule for your exit reason.
- If you're being made redundant, ask whether the employer (with associated entities) has 15 or more employees.
- Ask for your current annual leave balance and whether you receive leave loading.
- If you're near a service anniversary, check whether waiting changes the result. It often does in SA and the NT.
- Ask for an itemised final pay, then compare it line by line with the calculators.
Guides
- How redundancy is taxed — the tax-free limit, ETP rates and caps with worked examples
- Is redundancy pay tax free? — the short answer and the three conditions
- What makes a redundancy genuine — the Fair Work test, the tax test and why they differ
- Redundancy pay table: weeks and dollars — the NES weeks for each year of service, in dollars at common salaries
- Voluntary redundancy and ex gratia payments — when a volunteered redundancy is genuine and how top-ups are taxed
- The official redundancy formula — the NES table the government tool applies
- Small business redundancy exemption — who counts toward 15 employees and the exceptions
- How age changes a redundancy payout — the over-45 notice week, preservation age and pension age
- Paying redundancy: an employer checklist — weeks owed, the pay basis, withholding and the common errors
- Notice periods and pay in lieu of notice — the NES table, the over-45 week and how in-lieu pay is taxed
- Unused annual leave on termination — loading, the rate it is paid at and how it is taxed
- When your employer goes broke — what the Fair Entitlements Guarantee pays, the caps and how to claim
- Super on redundancy and final pay — which termination payments attract the 12% super guarantee
- Pro-rata long service leave — the state-by-state rules for leaving early
- How long service leave is taxed when you leave — 32% on redundancy, marginal rates on resignation, with examples
- Long service leave for casuals — continuity, gaps and pay rules in all eight jurisdictions
Why trust these numbers?
Every rate and rule on this site traces to a primary source — the Fair Work Ombudsman, the ATO's published schedules, and each state's long service leave legislation — verified 2026-08-07 and re-verified every July. The same tested engine drives the calculators and every worked example, so the numbers can't disagree with the words. See the methodology for sources.
Built and maintained in Adelaide by David Owen. Last reviewed 5 October 2026.
Independent guide — not a government service, and not financial or legal advice.