Australian guide
Checking an annual-leave payout estimate
Unused annual leave can be paid when employment ends or, in limited circumstances, cashed out during employment. Entitlement and tax treatment depend on the employment record and reason for payment.
Review scope: Method, Australian terminology, material assumptions, source links and user-facing limitations. See the editorial policy and public review log. Site-wide quality review completed 21 September 2026.
Reconcile the leave balance first
Obtain the recorded hours from the latest payslip or payroll statement and compare them with approved leave already taken or booked. Entitlement can vary with employment status, hours and applicable industrial instruments. A calculator should not create a leave balance that is missing from employment records.
Convert hours to weeks or days using the employee's ordinary hours, not a generic assumption. Part-time employees need their actual ordinary pattern reflected in the calculation.
Use the correct ordinary rate and loading
The gross payout commonly starts with unused hours multiplied by the relevant ordinary rate. Annual-leave loading may apply under an award, agreement or contract. Allowances, overtime and penalties are not automatically part of the ordinary rate and should be checked against the governing terms.
If employment continues, cashing out annual leave is subject to rules intended to preserve a minimum balance and generally requires a written agreement. Termination payouts follow a different context.
Keep gross entitlement and tax withholding separate
The gross value answers what leave is being paid. Payroll withholding answers how much tax the payer withholds at that time. The final income-tax position is determined through the person's total annual circumstances and tax return, so the withheld amount is not necessarily the final tax cost.
- Recorded unused leave hours
- Ordinary hourly or weekly rate
- Applicable leave-loading percentage
- Reason and date employment ends
- Payroll statement showing gross payment and withholding
Check the final statement
Compare the calculator estimate with the final payslip, separation certificate or payment statement. Ask payroll to explain material differences and seek Fair Work, union, legal or tax assistance where the entitlement or treatment remains disputed.
Use the related calculators
Apply the guide with your own figures. Save the assumptions with the result and recheck them when rates, costs or circumstances change.
Official sources
CalcAussie reviews these pages against current Australian Government guidance.
General information only. This guide does not take your personal tax, financial or employment circumstances into account.