On a final pay, super is payable on wages to your last day (including commission and earned bonuses) and on payment in lieu of notice. It is not payable on unused leave, redundancy pay or other termination payments.
That holds whether you resign, retire, are dismissed or are made redundant. The table below takes every item that can turn up on a final payslip and runs it through the ATO's qualifying earnings tables and, for the lump sums, its termination tax schedules. The sections after it deal with the in-between items most guides skip: overtime, commission, bonuses and back pay, plus the date the super has to reach your fund.
Key takeaways
- Super is 12% of the qualifying earnings on your final pay: ordinary wages with penalties and loadings, commission, bonuses earned for work, gardening leave and payment in lieu of notice.
- No super on unused annual leave, leave loading, long service leave, personal leave, RDOs or time off in lieu paid out when you leave, whatever the reason.
- No super on redundancy pay, golden handshakes, severance or compensation for losing the job.
- Overtime in the last pay attracts no super. Commission does, even for work done entirely outside ordinary hours.
- The super must be received by your fund within 7 business days of the final pay.
The final payslip, payment by payment
The super column comes from the ATO's qualifying earnings tables. The tax column covers lump sums paid because the job ended, from the ATO's 2026-27 termination schedules; "under 60" means under preservation age.
| Payment on a final pay | Super (12%)? | Tax in one line |
|---|---|---|
| Wages for ordinary hours to the last day, including penalties, shift loadings and casual loading | Yes | Pay for work (see note) |
| Overtime in the final wages, where ordinary hours are clearly identified | No | Pay for work |
| Commission, for any hours | Yes | Pay for work |
| Performance or Christmas bonus earned for work | Yes | Pay for work |
| Bonus solely for work entirely outside ordinary hours | No | Pay for work |
| Back pay | Yes on the ordinary hours, allowance and leave parts; no on overtime | Pay for work |
| Gardening leave during the notice period | Yes | Pay for work |
| Bonus paid to withdraw a resignation | Yes | Pay for work |
| Payment in lieu of notice | Yes, for any reason the job ended | ETP: 32% under 60, up to the smaller of the ETP cap and the whole-of-income cap. Can instead form part of a genuine redundancy payment |
| Unused annual leave | No | Not an ETP. Normal exit, leave accrued after 17 August 1993: marginal rates, with salary and wages. Genuine redundancy, invalidity or early retirement scheme: 32% |
| Leave loading on that leave | No | Taxed with the leave |
| Unused long service leave | No | Not an ETP. Taxed by when it accrued: 5% of the pre-16 August 1978 part at marginal rates; 32% on 16 August 1978 to 17 August 1993; after that, marginal rates on a normal exit or 32% on redundancy |
| Unused personal or carer's leave, only where a contract or agreement pays it out | No | ETP: 32% under 60, up to the smaller cap |
| Unused RDOs and time off in lieu | No | ETP, up to the smaller cap |
| Redundancy pay, tax-free part | No | Tax-free and not an ETP: $13,598 + $6,801 per completed year |
| Redundancy pay above the tax-free limit | No | ETP: 32% under 60, up to the $270,000 ETP cap only |
| Golden handshake, gratuity, severance, non-genuine redundancy, ex gratia for loss of job | No | ETP, up to the smaller of the ETP cap and the whole-of-income cap |
| Compensation for unfair or wrongful dismissal | No | ETP, up to the ETP cap |
The two caps for 2026-27 are the $270,000 ETP cap and the $180,000 whole-of-income cap. Above either one, the excess is taxed at 45% plus the 2% Medicare levy. Note: rows marked "pay for work" are wages, not termination lump sums, and their withholding is outside the scope of this table. Under the National Employment Standards, sick and carer's leave is not paid out when employment ends, so that row only applies where your contract or agreement says otherwise. The exceptions are covered in is sick leave paid out?
ATO, What payments are qualifying earnings (QC105843, last updated 2 September 2026, for earnings paid from 1 July 2026): Table 1 ("Ordinary hours of work", "Casual loading.", "Shift penalties (including public holiday penalties)."), Table 2 ("Gardening leave."), Table 7, Table 9 ("Overtime payments - provided the employee's ordinary hours of work are clearly identified": not qualifying earnings), Table 10, Table 12 ("Bonus paid to an employee who has resigned and is encouraged to withdraw their resignation.": qualifying earnings) and Table 13 (all five termination rows).
Tax: ATO Schedule 11, tax table for employment termination payments (last updated 17 June 2026, retrieved 9 September 2026), Table A rows for redundancy and unfair dismissal payments ("ETP cap") and for "a golden handshake, non-genuine redundancy, severance pay, a gratuity, in lieu of notice, for unused sick leave, or for unused rostered days off" ("Smallest of ETP cap and whole-of-income cap"), 32% under preservation age. ATO Schedule 7, unused leave payments on termination (published 17 June 2026, retrieved 9 September 2026). ATO, Employment termination payments for employees (last updated 5 June 2026): ETPs "don't include: lump sum payments for unused annual or long service leave; the tax-free part of a genuine redundancy payment"; excess "Taxed at the top marginal rate of 45% plus Medicare levy (2%) on the amount over the relevant cap." ATO, Key super rates and thresholds: Employment termination payments (last updated 17 April 2026). Fair Work Ombudsman, Final pay (content last updated 28 September 2026): "Sick and carer's leave isn't paid out when employment ends."
The final pay calculator adds up notice, unused leave and redundancy pay. Apply 12% to the wages and notice lines only to estimate the super. For the tax on the ETP lines use the ETP tax calculator, and for leave the annual leave payout calculator.
Why leave payouts and redundancy pay get no super
The leave exclusion comes from Parliament, not from ATO guidance that could shift with the next ruling. It sits in the Superannuation Guarantee (Administration) Act, whose definition of ordinary time earnings leaves out lump sums for unused sick leave, annual leave and long service leave paid on termination. The ATO's qualifying earnings table then confirms that none of these payments is qualifying earnings.
"... other than a lump sum payment of any of the following kinds made to the person on the termination of the person's employment: (c) a payment in lieu of unused sick leave; (d) an unused annual leave payment, or unused long service leave payment, within the meaning of the Income Tax Assessment Act 1997." Compilation No. 78, in force 1 July 2026, retrieved 9 September 2026.
The reason you left makes no difference. The ATO says the leave rule "applies regardless of the reason for termination or treatment for tax purposes", so resigning, retiring, being dismissed and being made redundant all give the same super answer, even though the tax on the same leave changes with the reason.
Everything else paid because a job ended sits in a single ATO list: golden handshakes, redundancy pay above the tax-free limit, severance, non-genuine redundancy, compensation for loss of job or wrongful dismissal, invalidity payments other than compensation for personal injury, and lump sums paid because an employee died. None of them is qualifying earnings. Redundancy pay, including its tax-free part, has a guide of its own with a full package worked through: Is super payable on redundancy?
Overtime, commission and bonuses in the last pay
The last regular pay often carries more than wages and leave, and the ATO treats each extra differently:
- Overtime: no super, as long as your ordinary hours are clearly identified. Hours beyond them are not qualifying earnings.
- Commission: super on all of it. Under Payday Super every commission is qualifying earnings, including commission solely for work done entirely outside ordinary hours.
- Bonuses: super if earned for work. Performance bonuses, Christmas bonuses, and bonuses labelled ex gratia but paid for ordinary hours are all qualifying earnings. A bonus for work done entirely outside ordinary hours is not, and nor is a payment made because the employment ended, such as a golden handshake.
- Back pay: split it. Where arrears cover ordinary hours, higher duties allowances, paid annual leave and overtime, everything except the overtime is qualifying earnings.
- A bonus to stay. If your employer pays you to withdraw a resignation, the ATO lists that bonus as qualifying earnings.
When the super on your final pay is due
A final pay made on or after 1 July 2026 is under Payday Super, even if it pays for work done before then. A final pay made before 1 July 2026 stays under the old quarterly rules, with super based on ordinary time earnings for the quarter.
Under Payday Super the deadline is about arrival, not dispatch. The contribution must be received by your fund within 7 business days after the payment. Weekends do not count, and nor does a public holiday covering a whole state or territory anywhere in Australia. A holiday that covers only part of a state, such as Royal Hobart Show Day, still counts as a business day.
Bonuses and commissions paid off the usual cycle normally get extra time, because their deadline runs from the next regular payday. LI 2026/20 only treats a payment as out of cycle when an in-cycle payment follows it on the next scheduled payday. A final pay has nothing after it, so on our reading of LI 2026/20 the 7 business days run from the final pay itself, commission and bonus included.
Two further timing rules sit alongside this. Under the National Employment Standards, payment in lieu of notice must be made on or before the day employment ends, and most awards require the rest of the final pay within 7 days after the last day. If your notice pay and the rest of your final pay arrive on different days, treat each payment as starting its own 7 business days.
ATO, Payment deadlines for Payday Super (QC105846, last updated 29 September 2026): contributions are due "within 7 business days after paying your employee"; "If a public holiday applies to only part of a state or territory (for example, Royal Hobart Show Day), that day is still a business day for Payday Super purposes." LI 2026/20 s 5(3) (registered 24 June 2026): a payment is out of cycle only if "the employer makes another payment of qualifying earnings to or for the employee (the subsequent payment) following the first payment", in cycle and on the next scheduled day. LCR 2026/1 (published 5 August 2026), paragraphs 8 and 9.
Fair Work Ombudsman, Final pay (content last updated 28 September 2026): "the employer must make the payment [in lieu of notice] before or on the day of termination. This is a requirement under the NES." "Most awards require employers to pay employees their final pay within 7 days after their last day of employment." ATO, Final pay and superannuation for employees (last updated 6 November 2025, for earnings paid up to 30 June 2026): "The SG contribution will be based on ordinary time earnings for the quarter." Retrieved 6 to 7 October 2026.
Worked examples
Sam: resignation, with commission and a bonus
Sam resigns after 6 years and works out his notice. His last day and final pay both fall on Thursday 15 October 2026. His base rate is $1,400 a week for 38 hours ($36.84 an hour).
| Line | Amount | Super? |
|---|---|---|
| Final week's ordinary wages | $1,400.00 | Yes |
| Saturday penalties that week | $70.00 | Yes |
| Overtime that week | $120.00 | No |
| Sales commission | $500.00 | Yes |
| Annual performance bonus paid on exit | $2,000.00 | Yes |
| Unused annual leave, 80 hours | $2,947.37 | No |
| Leave loading at 17.5%, where the award provides it | $515.79 | No |
| Qualifying earnings | $3,970.00 | |
| Super guarantee, 12% | $476.40 | Due by Monday 26 October 2026 |
52.6% of Sam's $7,553.16 final pay attracts super. His leave and loading are taxed at marginal rates with salary and wages, because this is a normal termination and the leave accrued after 17 August 1993. Whether loading is owed on a leave payout in the first place is covered in leave loading on termination. Royal Hobart Show Day on Thursday 22 October covers only part of Tasmania, so it still counts as one of the 7 business days, and the super is due by Monday 26 October 2026.
Lee, 38, is dismissed for performance after 4 years. His employer pays 3 weeks in lieu of notice at his full rate of $1,510 a week ($1,400 base, a $40 allowance and $70 of regular Saturday penalties). The notice payment is $4,530, and the super on it is 12% x $4,530 = $543.60. Paid on his last day, Friday 13 November 2026, that super must reach his fund by Tuesday 24 November 2026.
Lee's contract also pays out 30 hours of unused personal leave at his base rate, $1,105.26. It carries no super. It is taxed as an ETP together with the notice pay, at 32% because he is under 60, up to the smaller of the ETP cap and the whole-of-income cap.
If super is missing from your final pay
- Give it 7 business days from the final pay, then compare what reached your fund with 12% of the wages, commission, earned bonuses and notice pay on the payslip.
- Check your award or agreement. The ATO notes an award or enterprise agreement can oblige your employer to pay super on amounts that are not qualifying earnings.
- If the business has failed, the Fair Entitlements Guarantee will not make up missing super, because it excludes superannuation. Directors can be personally liable for unpaid super under the director penalty rules.
Questions with their own guides
Three common items on a final pay have a full guide each. Here is the short answer, and where to go for the rest.
- Annual leave paid out: no super, whatever the reason you left. Leave you take, leave loading and leave cashed out while still employed all work differently, and are covered in superannuation on annual leave. The withholding on the payout is in tax on an annual leave payout.
- Payment in lieu of notice: 12% super, for any reason the job ended. How the amount is worked out is in payment in lieu of notice.
- Redundancy pay: no super, including the tax-free part. The package split, rollover rules and contribution caps are in Is super payable on redundancy?
Common questions
Does superannuation get paid on termination payments?
On some of them. Wages to your last day and payment in lieu of notice attract 12% super. Unused leave, redundancy pay and other employment termination payments do not.
Does severance pay attract super?
No. Severance pay is on the ATO's list of payments made because employment ended that are not qualifying earnings.
Is super payable on termination payments, according to the ATO?
The ATO's employer guidance says employment termination payments and unused leave payments are not qualifying earnings, so no super guarantee is due on them. Its qualifying earnings table carves out one exception: payment in lieu of notice, which attracts super for every reason of termination even though it is taxed as an ETP.
Is super paid on annual leave on termination?
No, whatever the reason you leave. Superannuation on annual leave covers leave you take and leave cashed out while you are still employed, both of which do attract super.
Is super payable on payment in lieu of notice?
Yes, 12% of the payment, for any reason the employment ended. See payment in lieu of notice for how the amount is calculated.
Is super payable on a long service leave payout?
No. Unused long service leave paid when employment ends is excluded from ordinary time earnings by the Act and is not qualifying earnings.
Is super paid on time in lieu on termination?
No. Unused rostered days off and time off in lieu of overtime paid out on termination are not qualifying earnings. They are taxed as an employment termination payment.
Is super paid on my final commission or bonus?
Yes on commission, for any hours. Yes on a bonus earned for your work, such as a performance or Christmas bonus. No on a bonus for work done entirely outside ordinary hours, or on a payment made because the job ended.
When must the super on my final pay be paid?
It must be received by your fund within 7 business days after the final pay. Weekends and public holidays covering a whole state or territory do not count.
How do I calculate my termination pay?
The final pay calculator adds up notice, unused annual leave and redundancy pay from your pay rate and dates. Apply 12% to the wages and notice lines to estimate the super.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.