Long Service Leave (Cash In)

An employee who has a long-service leave entitlement can, subject to the industrial instruments and Long Service Leave procedure, request for their entitlement to be converted to a lump sum payment. The period cashed in can be between 7 calendar days and the whole of the available long-service leave entitlement.

Application process

To request a cash in of your long service leave entitlements, an application must be lodged through the online Cashing in long service leave application form.

All elections to cash in long service leave benefits must be based on calendar days. Seven long-service leave days is equivalent to 1 week’s salary. For example, if an employee nominates 91 long service-leave days to be paid, they would receive a payment of 13 weeks salary (i.e. 91 calendar days / 7 calendar days per week).

The employee's long-service leave entitlement balance will be reduced by the number of days cashed in.

Payment

Payment will be made by Payroll Services in the first available pay following the receipt of the request - payroll cut off dates will apply. This payment will be paid to the employee's ordinary bank account as held on the payroll system. If the payment is to be made to another bank account, these instructions must be included with the initial request.

The payment will be taxed at the employee's marginal rate of tax. The tax savings that are received on termination are not applicable. The payment must be declared as normal gross salary on the employee's Employment Income Statement and therefore will be taxed the same as normal gross salary.

Please note: Receiving a cash payment for LSL will increase the employee's total taxable income for the financial year in which it is paid. This may have an impact on an individual’s tax arrangements. It is recommended that you seek the appropriate independent financial/tax advice prior to submitting your request.

Superannuation

LSL that has been 'cashed in' does attract superannuation contributions. LSL payouts cannot be directed to super as a before-tax contribution.

Please discuss the cashing in LSL superannuation implications with our Superannuation Officer at Superannuation@unisa.edu.au or phone ext 21637.

Further information

Any further queries regarding cashing in of long service leave (LSL) should be directed to the employee's local People, Talent and Culture (PTC) coordinator/contact or Payroll Services at PayrollServices@unisa.edu.au or phone ext 22911.