Final Pay Calculator Australia 2026
A final pay is not one payment. It is several different payments, each with its own rules and its own tax. One-number calculators hide that, so this one shows every component separately.
How we estimated your tax
Wages, notice pay, unused annual leave (with loading) and long service leave are stacked on top of the income you enter above, and we take the extra FY2026-27 resident tax and 2% Medicare Levy that results (the marginal method). In a genuine redundancy, the share of that tax attributed to leave payouts is capped at 32% of those payouts (ATO Schedule 7).
Redundancy pay up to $13,598 plus $6,801 per completed year of service is tax-free. The excess is an ETP taxed at 32% (17% if you have reached preservation age) on the first $270,000 and 47% above that, Medicare included. A genuine redundancy excess is an excluded payment, so the $180,000 whole-of-income cap does not apply.
Not included: LITO and other offsets, HELP debts, the Medicare Levy Surcharge and deductions. These are settled when you lodge your tax return.
What's in a final pay
Unpaid wages are anything you earned but were not yet paid. Notice is pay in lieu when your employer ends your job, on the National Employment Standards scale of one to four weeks (plus one if you are 45 or older with two years' service). Unused annual leave is paid out at your ordinary rate, usually with 17.5% loading. Long service leave follows your state's Act, and we use our long service leave engine for it. Redundancy pay applies only to a genuine redundancy at an employer with 15 or more employees.
How tax works on a final pay
Redundancy pay has a tax-free limit, and only the excess is taxed as an ETP. Leave payouts in a genuine redundancy have their tax capped at 32% under Schedule 7. Everything else is taxed using the marginal method, as if it were added to your income for the year.
Worked example
Take a NSW employee aged 40 on $85,000 a year ($1,634.62 a week), made redundant after 5 years with 3 weeks of unused annual leave. Notice is 3 weeks: $4,903.85. Redundancy is 10 weeks: $16,346.15, fully tax-free because the limit is $47,603. Annual leave with loading is $5,762.02, and long service leave is 4.3333 weeks: $7,083.33. Gross is $34,095.35. Tax applies only to the $17,749.20 of notice and leave, at 32% (30% plus Medicare) because it sits in the $45,000–$135,000 band: $5,679.74. Net is $28,415.61.
Frequently asked questions
What is included in a final pay?
A final pay is the total of what your employer owes when your job ends. It can include unpaid wages, pay in lieu of notice, unused annual leave (usually with 17.5% loading), long service leave and, in a genuine redundancy, redundancy pay. Each part has its own rule and its own tax treatment.
Is redundancy pay taxed?
Part of it may be tax-free. For FY2026-27 the tax-free limit is $13,598 plus $6,801 for each completed year of service. Anything above that is an employment termination payment (ETP) taxed at 32% under your preservation age, or 17% once you have reached it, on the first $270,000 of excess, and 47% above that.
Why is my unused leave taxed the way it is?
Unused annual leave and long service leave are taxed as ordinary income, stacked on top of your other earnings for the year. In a genuine redundancy, the tax on those leave payouts is capped at 32% under ATO Schedule 7. Your final tax is settled when you lodge your return.
Do I get superannuation on my final pay?
Generally no. Super is not payable on redundancy pay, on leave payouts or on pay in lieu of notice. It is still owed on ordinary wages you earned before you left.
What if my employer has fewer than 15 employees?
Employers with fewer than 15 employees do not have to pay NES redundancy pay for a genuine redundancy. You can still be owed notice, unused leave and long service leave. An award, agreement or contract may promise more, so check your paperwork.
When does my employer have to pay my final pay?
Under the Fair Work Act, final pay is generally due within 7 days of your employment ending. Some awards or agreements set different timing. If it is late, the Fair Work Ombudsman can help.
Sources: Fair Work Ombudsman; ATO Schedules 7 and 11; state long service leave Acts. Rules and tax figures checked October 2026 (FY2026-27).
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This is an estimate only and is not legal, financial or tax advice. Your agreement or award may pay more. Check with the Fair Work Ombudsman, the ATO or a professional.