I write to clarify the policy on SES officers cashing out accrued recreational and extended leave upon electing right of return.

The policy is that SES officers exercising right of return to a position within the NSW public sector have the option of cashing out all or any of their unused recreation and extended leave. This includes any unused leave accrued prior to entry to the SES as a NSW public sector employee.

The option to cash out leave must be made by the officer within thirty days (30) of appointment to a position.

Accrued leave is to be paid at the rate of 72.5% of the individual's total remuneration package and the appropriate marginal tax rate applied.

In certain circumstances, an officer may be eligible to have this lump sum payment taxed at concessional tax rates. lndividual officers should approach the Australian Taxation Office to seek clarification of their situation and ascertain what supporting documentation is required from the agency.

It would be appreciated if you could bring this advice to the attention of relevant officers within your agency.

Any enquiries should be directed to Donna Vaughan, Public Employment Office, on 228 5627.

(K.P. Baxter)
Director-General