Currently on maternity leave and quite confused as to whether I have made the right choice on the way I have taken my leave.
I have chosen to take it at full pay and remove half myself and place in our mortgage offset account therefore pretending I am receiving it as half pay and saving on the interest.
If I hadve taken it at half pay, do I accumulate more superannuation through my employer? I think I would’ve accumulated an extra week of annual leave.
Also, would I pay less tax each pay being on half pay as opposed to full pay or does it work out the same as all my payments are received in one financial year?
One other reason I took the full pay was because I am on a contract which is due to expiry just after my leave at full pay therefore I was unsure if I was entitled to take it at half pay if my contract had expired half way through?
The superannuation will be the same regardless of the full or half pay (if applicable at all, and assuming you are above $450/mth at half pay).
The tax would be less at half pay than full pay, but the tax at year end will be the same (you might just create a bigger refund at end of 2020 tax year).
Regarding the contract position, you would need to look at the contract to determine if they would have paid you out in one hit or continued the regular payments.
Could have been a good idea to sit with your accountant (or find one) before making these decisions, and getting the details confirmed and right advice.