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Thinking about cashing out some recreation leave?
AS PART of the recent PS Wages Agreement employees with significant recreation leave balances may apply to cash out some of that leave. Some CPSU Members have asked if cashed out leave is treated as income for superannuation purposes. As is often the case with superannuation questions the answer isn’t straightforward. Stephen Hevey, our Business Relationship Officer from RBF, has kindly provided the following information.
RBF Regulations clearly exclude any money received from the employer in respect of accrued annual leave or long service leave not taken, for the purpose of calculating income for superannuation for members of the Contributory Scheme. This means cashed out leave would not be counted towards FAS (3) or FAS (1). However, Tasmanian Accumulation Scheme members would be entitled to have superannuation contributions paid on any additional money received from cashing in excess leave.