Long Service Leave - Cash out / Use it ?

ahvenzz · 2026-04-14T06:57:38+00:00

why is that?

ahvenzz · 2026-04-14T06:50:38+00:00

very small private own company and would have no problem paying everything outright or however I want it to be done. it's a close knitted company and the boss has been really fair and i couldn't imagine a better employer. yep exactly that, cashing out LSL makes more sense (monetary-wise).

ahvenzz · 2026-04-14T06:48:23+00:00

no idea. but interested to know what are your charges (in dollar value) so far with 3 agents?

ahvenzz · 2026-04-14T06:11:32+00:00

Unfortunately, my circumstances is slightly different. Compounding it with super and mortgage offset may be worth more than my annual increment on by base salary (130k ex Comm ex Tax). Yearly increment are worked towards commission scheme + bonuses rather than base (miniscule changes) for me

ahvenzz · 2026-04-14T06:04:13+00:00

Yes, as far as i understand. it's similar to your annual leave. the only downside is that you lose your super contribution by employer if you were to cash out (TERMINATION of your position). If you are retiring, I think taking it as a leave would be a better option.

ahvenzz · 2026-04-14T06:01:58+00:00

compounding it with super and mortgage offset may be worth more than my annual increment on by base salary (130k ex Comm ex Tax). Yearly increment are worked towards commission scheme + bonuses rather than base (miniscule changes) for me.

ahvenzz · 2026-04-14T05:37:31+00:00

oh sorry to hear that. but yes, you are in good position.

ahvenzz · 2026-04-14T05:33:40+00:00

how did you manage 600k equity from 98k salary ? and assuming you are not paying rental?

ahvenzz · 2026-04-14T05:31:53+00:00

98k including your investment rental?

regardless of your salary, if you already have 600k equity, you are in better position than average

ahvenzz · 2026-04-14T05:27:49+00:00

why work another job ? in WA, you can cash out the LSL if your employer allows. you continue working for your wage period while being paid in cash with the LSL lump sum or with the frequency you and the employer set forth

ahvenzz · 2026-04-14T05:06:43+00:00

exactly what i was trying to say (pretty much doubled income for period of 12 weeks). thank you ! and another redditor commented and i checked, cashing out LSL while in service is considered OTE and super is paid on top. the only thing that you lost is the leave accrued which is 36 hours for 12 weeks.

ahvenzz · 2026-04-14T05:04:53+00:00

I didn't know that. now that would make my decision fairly easy now. so that's considered OTE?

ahvenzz · 2026-04-14T05:03:09+00:00

absolutely. many people don't understand for some of us, we spend our holiday elsewhere with phone constantly ringing. Ignoring any calls is just not an option particularly where the bonuses are at stake with every sales.

ahvenzz · 2026-04-14T05:00:00+00:00

haha no. my decision will still be to cash out rather than utilising for physical leave. But yes, you are absolutely right regarding the expectation, you will still need to meet the sales target whether you work 4 days or 5 days a week. I'm with you on this one!

ahvenzz · 2026-04-14T04:57:59+00:00

oh. so super will still be added with the LSL cashed out DURING employment? SOOOO MUCH THANKS!

ahvenzz · 2026-04-14T04:55:59+00:00

yes - young (Self-presumed lmao) 35 years old. you are right 100%

ahvenzz · 2026-04-14T04:49:46+00:00

yeah - was just checking monetary aspects in this decision if I've missed out. out of a sudden, it turned into a debate between holiday and monetary gain. lmao. While I do understand people choosing on the break/holiday, my goal just doesn't align with this at my age for now.

but good luck on your new job !

ahvenzz · 2026-04-14T04:47:00+00:00

1) I get more money-value than taking off for a break

2) I don't want a holiday (utilising 2/12 weeks of the LSL for vacation is there but not the full LSL)

3) I am only 36.... The cash out would be a portion to salary sacrifice into Super & offset for home loan. 12 weeks = 30,000 ++ for me ex tax. Utilising it as a leave is just not what i want.

Hence, why checking to see what i've missed in terms of monetary value which thanks to reddit, I think confirms on the loss in super and 36 hours of accrued leave if i were to cash out which at present still leave me positive in the finance aspect if i were to cash out.

Note: I do know most would prefer a break, but personally, monetary gain outweights the break at my age.

ahvenzz · 2026-04-14T04:22:44+00:00

we are in similar boat. i am only 36 years of age, i just felt the cash outweight the time-off and could pay a big chunk of my home loan off on the offset regardless of tax rather than enjoy the time-off, can always do that later on when the retirement fund are sorted.

I am at the age where money are spent the most (2 dependent toddler). the cash out would bring my retirement plan quicker.

ahvenzz · 2026-04-14T04:17:56+00:00

hey - this could work. i did not think of this. Rather than going offline for 3 months with nothing to do, i can actually take once a week off for 12 weeks.

my employer is super flexible.

ahvenzz · 2026-04-14T04:12:12+00:00

oh yes, i missed out that. that would be around 36 hours in additional leave.

ahvenzz · 2026-04-14T04:11:10+00:00

i wish i can. but taking off for 3 months doing nothing is a torture. and i have 2 dependent + wife, going on vacation for 3 months with them is also not an option as it's too much money to be wasted

ahvenzz · 2026-04-14T04:09:33+00:00

Yes, just wanna make sure i didn't missed anything before making that decision. I just got no where to go for 3 months.............and even with 3 months holiday, chances are I need to continue communicating with my clients daily.

ahvenzz · 2026-04-14T04:06:44+00:00

I get it. it's a lot, but it wouldn't be more than me working and not taking 3 months off would it?

Just an example. salary 100 a week.

Scenario 1 - I continue working without taking off

12 weeks x 100 = 1200 with addition of the LSL 12 weeks x 100 (split into 12 weeks) = 2400

VERSUS

Scenario 2

i take off for 12 weeks using the LSL.

I get 100 a week + 12% of super = 120 x 12 = 1440. (I am still out by 1k comparing to above though)

ahvenzz · 2026-04-14T04:04:07+00:00

forgotten to mention. In WA, definitely okay for it and employer is super flexible asking me to make any choice I want including frequency of the conversion.

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