Updated rules relating to cashed out leave

From 1 July 2026 employers no longer need to report remuneration paid for annual leave that is cashed out during employment. This change follows an update to the definition of Ordinary Pay in the Scheme Rules.

What’s changed?

You no longer need to report remuneration paid for annual leave that is cashed out while a worker remains employed. The days associated with cashed out annual leave don’t need to be reported either.

You do still need to report remuneration paid in relation to accrued but unused annual leave upon termination of employment. The number of annual leave days paid out on termination must also be reported.

What about cashed out RDOs?

There’s no change to how cashed out rostered days off (RDOs) are reported. Where a worker cashes out RDOs during employment, the remuneration paid forms part of ordinary pay and must be reported on quarterly returns. However, the days associated with cashed out RDOs are not reportable and must not be included on quarterly returns.

Where remuneration is paid in relation to accrued but unused RDOs upon termination of employment, that remuneration remains reportable on quarterly returns. The associated RDO days must not be reported.

What to report on quarterly returns