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Final pay on a $$70,000 salary (2026–27): redundancy, notice, leave and tax
Estimated final pay after tax
$28,290
Gross $31,603 · tax $3,313 · net $28,290
| Weekly base pay | $1,634.62 |
| Redundancy pay (NES: 10 weeks) | $16,346 |
| Notice in lieu (3 weeks) | $4,904 |
| Unused annual leave (10.0 days) | $3,269 |
| Long service leave NSW (4.33 weeks) | $7,084 |
| Gross final pay | $31,603 |
| Tax-free redundancy (limit $47,603) | $21,250 |
| Tax on leave (32%) | − $3,313 |
| Net final pay (estimate) | $28,290 |
Pro-rata after 5 years (New South Wales). (Long Service Leave Act 1955 (NSW))
The 32% on unused leave, and why it is not a penalty here
On $70,000, $1,346 a week, the line that surprises people is the leave. Unused annual leave paid out on a genuine redundancy is withheld at a flat 32% — it looks like a penalty rate next to the ordinary payslip. It is not: your marginal rate on this salary is 32%, the 30% bracket that runs from $45,000 to $135,000 plus the Medicare levy. The withholding and the tax you actually owe are the same figure. What changes is the timing, not the amount — and if the redundancy happens late in the financial year, when your year-to-date income is already high, that flat rate can even be below what the leave would cost inside a normal pay run.
Final pay on $70,000 by years of service
Genuine redundancy, age 45, notice in lieu, 10 days of unused annual leave, NSW long service leave.
| Service | Redundancy | Notice | Annual leave | LSL | Gross | Tax | Net |
|---|---|---|---|---|---|---|---|
| 1 yr | $5,385 | $1,346 | $2,692 | $0 | $9,423 | $862 | $8,562 |
| 2 yrs | $8,077 | $2,692 | $2,692 | $0 | $13,462 | $862 | $12,600 |
| 3 yrs | $9,423 | $2,692 | $2,692 | $0 | $14,808 | $862 | $13,946 |
| 5 yrs | $13,462 | $4,038 | $2,692 | $5,834 | $26,026 | $2,728 | $23,298 |
| 7 yrs | $17,500 | $5,385 | $2,692 | $8,167 | $33,744 | $3,475 | $30,269 |
| 10 yrs | $16,154 | $5,385 | $2,692 | $11,667 | $35,898 | $4,595 | $31,303 |
| 15 yrs | $16,154 | $5,385 | $2,692 | $17,501 | $41,731 | $6,462 | $35,270 |
| 20 yrs | $16,154 | $5,385 | $2,692 | $23,334 | $47,565 | $8,328 | $39,237 |
The leave column is the same at every line — it depends on the balance you have accrued, not on your service. The long service leave column is the opposite: nothing until the state threshold, then a payment that quickly outgrows the redundancy itself. At ten years on $70,000 the two together are $35,898 gross and $31,303 net.
Ten years of service in each state
Same salary, same leave balance, each state's long service leave Act at ten years. The last column is a resignation.
| State | Long service leave | Net on redundancy | Net on resignation |
|---|---|---|---|
| New South Wales | $11,667 | $31,303 | $9,764 |
| Victoria | $11,667 | $31,303 | $9,764 |
| Queensland | $11,667 | $31,303 | $9,764 |
| Western Australia | $11,667 | $31,303 | $9,764 |
| South Australia | $17,500 | $35,269 | $13,731 |
| Tasmania | $11,667 | $31,303 | $9,764 |
| Australian Capital Territory | $11,667 | $31,303 | $9,764 |
| Northern Territory | $17,500 | $35,269 | $13,731 |
Frequently asked questions
How much redundancy pay on a $70,000 salary?
On a salary of $70,000 the base rate works out at $1,346 a week, and redundancy pay is that figure multiplied by the number of weeks set by the National Employment Standards: $13,462 after 5 years, which is 10 weeks; $21,538 after 9 years, the peak of the scale at 16 weeks; and $16,154 at 10 years or more, where the scale drops back to 12 weeks. An award or enterprise agreement may provide more, never less.
Is long service leave taxed at the same 32%?
On a genuine redundancy, yes — unused long service leave accrued after 17 August 1993 is withheld at the same flat rate. On a resignation it is taxed at marginal rates instead, which on $70,000 works out to much the same, but the payslip looks different.
Can I take the leave instead of being paid out?
Only with the employer's agreement, and it changes the tax. Leave taken as leave is ordinary income taxed at marginal rates in the pay period; leave paid out on termination is an ETP-adjacent lump sum withheld at the flat rate. It also extends your service, which can matter next to a long service leave threshold.
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Sources
Written by Mottalib Radif
INSEAD MBA · Mines Saint-Étienne engineer · Personal finance and employment entitlements
Updated on · Editorial policy · Contact
Rates 2026–27, last updated 2026-09-16