Hi fellow OzBargainers,
Can you salary sacrifice Annual Leave and accrued LSL when resigned from your job? My employer is exempt from FBT and we have a tax free threhold of $16K which I have not fully utilised.
Thanks
Salary Packaging Annual Leave Payout
AndyRates on 08/07/2021 - 19:06
Comments
This is correct
If you are planning to leave maybe you should jack up your salary sacrifice contributions.
Example is new financial year started 1st July. You going to quit in 9 months and expect x weeks of AL and x weeks of LSL to be paid out but don't want to pay more tax this year, then increase your salary sacrifice for the 9 months.
good idea, never thought about that. pity the new job offer only came recently and that my only chance to salary sacrifice is the final pay slip which would be termination payout which may involve some AL and LSL but I have not worked there for 10 years yet.
Theory of you haven't handed in your notice you can get the forms to make cut off to salary sacrifice your total notice period into super or whatever you are thinking of.
Won't be able to do AL or LSL unfortunately.
If you are planning to leave maybe you should jack up your salary sacrifice contributions.
If your current employer is NSW health, you get double screwed by preponing your SS. They have a LHD share component, which gets out of whack by SS more.
A lot of larger places allow you to cash out your annual leave… maybe do that before you resign.
Tag along question, if I'm due to be paid out a lot of annual leave (6 weeks) that I'm unlikely to use up before I finish - would it be smarter to salary sacrifice as much as possible or just let it be cashed out when I leave?
Looking at trying to have as much money leftover as possible (so don't care if it sits in my super) - I'll be working full time this financial year.
No difference in my opinion. All of this would be happening in the same financial year, each will cancel each other out.
Why dont you take the leave and get paid rather than cash it out? Even if you dont want to/cant/locked down you can still get paid to bum around at home or start your new job earlier(?) or do some hobbies. Sorry but I'm failing to see why people opt to cash out the leave..?
Because our workplace is strict with leave. Because of last year my leave has been sitting at over 200 hours and will only dip below that if I am still around in October at my current company. I take leave any chance I can.
I don't think they will pay out my leave as annual leave if I resign way in advance, I don't think they'd approve it. My desire to change jobs is greater than waiting around to be able to go on leave.
No, you can only salary sacrifice future (unearned/yet-to-be-earned) pay.