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Final pay on a $$80,000 salary (2026–27): redundancy, notice, leave and tax

Ordinary base rate, excluding overtime, penalties and allowances

Decimals allowed, e.g. 7.5

Employer has fewer than 15 employees
Notice paid in lieu (not worked)
17.5% leave loading

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Estimated final pay after tax

$28,290

Gross $31,603 · tax $3,313 · net $28,290

52 %
16 %
10 %
22 %
10 %
Redundancy
Notice
Annual leave
Long service leave
Tax
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))

Why longer service makes tax less likely, not more

At $80,000, $1,538 a week, every completed year of service does two things at once. It adds to your NES redundancy entitlement — roughly two weeks a year up to the sixteen-week maximum — and it adds $6,801 to your tax-free limit. On this salary those two rates are not comparable: a year of service buys you about two weeks of pay, worth around $3,077, while the same year raises the exempt amount by $6,801. The limit grows faster than the entitlement it is meant to cover. Long service therefore moves you further from a tax bill, not closer to one — the opposite of the intuition most people bring to a redundancy.

Final pay on $80,000 by years of service

Genuine redundancy, age 45, notice in lieu, 10 days of unused annual leave, NSW long service leave.

ServiceRedundancyNoticeAnnual leaveLSLGrossTaxNet
1 yr$6,154$1,538$3,077$0$10,769$985$9,785
2 yrs$9,231$3,077$3,077$0$15,385$985$14,400
3 yrs$10,769$3,077$3,077$0$16,923$985$15,938
5 yrs$15,385$4,615$3,077$6,667$29,744$3,118$26,626
7 yrs$20,000$6,154$3,077$9,334$38,564$3,971$34,593
10 yrs$18,462$6,154$3,077$13,334$41,026$5,251$35,775
15 yrs$18,462$6,154$3,077$20,001$47,693$7,385$40,308
20 yrs$18,462$6,154$3,077$26,668$54,360$9,518$44,842

Compare the redundancy column with the limit as you go down: $47,603 at five years against an entitlement of ten weeks, $81,608 at ten years against twelve. The gap widens with every line. That is why the twelve-week drop at ten years costs so little in practice — long service leave arrives at the same moment and is worth more than the four weeks lost.

Ten years of service in each state

Same salary and leave, each state's Act applied at ten years; the last column shows what a resignation would pay.

StateLong service leaveNet on redundancyNet on resignation
New South Wales$13,334$35,775$11,159
Victoria$13,334$35,775$11,159
Queensland$13,334$35,775$11,159
Western Australia$13,334$35,775$11,159
South Australia$20,000$40,308$15,692
Tasmania$13,334$35,775$11,159
Australian Capital Territory$13,334$35,775$11,159
Northern Territory$20,000$40,308$15,692

Other salaries

Frequently asked questions

How much redundancy pay on a $80,000 salary?

On a salary of $80,000 the base rate works out at $1,538 a week, and redundancy pay is that figure multiplied by the number of weeks set by the National Employment Standards: $15,385 after 5 years, which is 10 weeks; $24,615 after 9 years, the peak of the scale at 16 weeks; and $18,462 at 10 years or more, where the scale drops back to 12 weeks. An award or enterprise agreement may provide more, never less.

What counts as a completed year of service?

Twelve months of continuous service with the employer, whole years only — eleven months rounds down to nothing for the limit. Unpaid leave of more than the ordinary period can break continuity; parental leave and periods of paid leave do not.

Does a part-time year count as a full year for the limit?

Yes. The $6,801 per year is not scaled by hours — it depends on the length of service, not on how much you earned in it. Your redundancy pay, calculated on your ordinary weekly rate, is scaled; the limit is not.

Related calculators & guides

Sources

Mottalib Radif

Written by Mottalib Radif

INSEAD MBA · Mines Saint-Étienne engineer · Personal finance and employment entitlements

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Rates 2026–27, last updated 2026-09-16