The University will apply the appropriate tax rate in accordance with Schedule 7 – Tax table for unused leave payments on termination of employment (Schedule 7). This is a withholding tax schedule made by the Commissioner of Taxation in accordance with the Taxation Administration Act 1953, which applies to unused annual (recreation) leave or long service leave payments included in an individual’s assessable income.
Schedule 7 also advises that Tax File Declaration numbers provided by staff will only be effective for the period that they work for the University or 12 months after the date that University make the last payment i.e. final payment on cessation of employment.
For staff who are currently employed by the University, the additional payment will be made in your fortnightly pay on Thursday 26 November 2020 and normal pay as you go income tax will be deducted from the gross amount. The additional payment will be shown on your payslip advice which is available through the myHR web portal.
For former staff, including those who continue to have a non-employment affiliation with the University, we will deduct a pay as you go (PAYG) income tax amount of 32% if their employment ceased within 12 months of the payment being made, or 47% if employment ceased more than 12 months after this date. The appropriate PAYG amount will be remitted to the Australian Taxation Office (ATO) as required, with the balance being paid to you directly.
Former staff will also receive a pay slip for this payment which will be sent to the address provided to the University during their employment. This will also be advised to the ATO and details will be available to you on ATO online services via myGov.