The smartest way to use your annual leave in 2027

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Most full-time and part-time workers in Australia are entitled to 20 days of annual leave each year.

On the face of it, that seems like a lot. But it can disappear quickly.

That's why - if you're wanting to maximise your time away from work - it can be worth taking leave around public holidays and weekends.

the-smartest-way-to-use-your-annual-leave-in-2027

The question is: when is the best time to do that?

From Easter to the King's Birthday, here are some of the best opportunities in 2027 to take annual leave.

At a glance: How to maximise your annual leave in 2027

  • Christmas and New Year (2026-27): Get 10 days off using three days of leave
  • Australia Day: Get four days off using one day of leave
  • Easter: Get 10 days off using four days of leave
  • Anzac Day: Get nine days off using four days of leave
  • King's Birthday: Get nine days off using four days of leave
  • Christmas and New Year (2027-28): Get 16 days off using seven days of leave

Christmas and New Year (2026-2027)

  • Potential break: 10 days
  • Annual leave needed: Three days

Christmas is a little over two months away, which will no doubt be welcome news to Australian workers hanging out for a break.

Because of the way Christmas Day (December 25), Boxing Day (December 26) and New Year's Day (January 1) fall, it's possible to take a decent chunk of time off for very little leave.

Workers can enjoy ten consecutive days off from December 25 to January 3 by using three days of annual leave on December 29, 30 and 31.

Just remember, employees can be required to take paid annual leave during a summer shutdown if it's a reasonable request - even if they might not want to.

Australia Day 2027

  • Potential break: Four days
  • Annual leave needed: One day

The holiday period between Christmas and New Years never feels long enough, so why not give yourself something to look forward to by booking a long weekend at the beach in late January?

Australia Day (January 26) falls on a Tuesday in 2027, so all you'll need to do is take January 25 as annual leave to create a four-day weekend.

Need more of a break? Extended it to a nine-day holiday by taking January 25, 27, 28 and 29 as annual leave.

Easter 2027

  • Potential break: 10 days
  • Annual leave needed: Four days

Easter comes early in 2027, which means that the opportunity for a bumper break combining the Easter and Anzac Day public holidays won't work.

That doesn't mean that workers can't take a decent chunk of time off over Easter though.

Thanks to the Good Friday (March 26) and Easter Monday (March 29) public holidays, it's possible to engineer a ten-day break from March 26 to April 4.

All you'll need to do it take annual leave on March 30 and 31 as well as April 1 and 2.

Anzac Day 2027

  • Potential break: Nine days
  • Annual leave needed: Four days

Anzac Day (April 25) falls on a Sunday this year, which means different states and territories will be approaching it in different ways.

In South Australia, Tasmania and Victoria, it will only be observed on the Sunday. In Queensland and the Northern Territory, it will be shifted to the Monday (April 26).

In the ACT, New South Wales and Western Australia, it will be observed on the Sunday, but with an additional public holiday on the Monday.

What does that mean for people looking to take time off around it though?

In places where the Monday is a public holiday, workers can take April 27, 28, 29 and 30 as annual leave to create a nine-day break between April 24 and May 2.

King's Birthday 2027

  • Potential break: Nine days
  • Annual leave needed: Four days

The King's Birthday is held on June 14 in most parts of Australia (Queensland celebrates it on October 4 and Western Australia on September 27), which falls on a Monday in 2027.

This creates an opportunity for people to take a nine-day stretch off work in exchange for just four days of annual leave.

So, how does it work? Well, by taking June 15, 16, 17 and 18 as leave, workers will have nine consecutive days off from June 12 through to June 20.

Christmas and New Year (2027-2028)

  • Potential break: 16 days
  • Annual leave needed: Seven days

It may be well into the future, but for the more organised among us, it's worth thinking about the holiday period at the end of 2027 and start of 2028 now - especially if you're planning a trip abroad.

Funnily enough, Christmas Day, Boxing Day and New Year's Day all fall on a weekend.

That means there will be additional public holidays for Christmas Day and Boxing Day on Monday, December 27, and Tuesday, December 28, and one for New Year's Day on Monday, January 3.

Importantly for those looking to maximise their time away from work though, it means that they can have a 16-day break stretching from December 25 through to January 9.

To achieve that, you'll need to lodge an annual leave request on December 29, 30 and 31, as well as January 4, 5, 6 and 7.

State and territory holidays in 2027

Australian Capital Territory

  • Canberra Day (March 8)
  • Reconciliation Day (May 31)
  • Labour Day (October 4)

New South Wales

  • Labour Day (October 4)

Northern Territory

  • May Day (May 3)
  • Picnic Day (August 2)
  • Christmas Eve - 7pm to midnight (December 24)
  • New Year's Eve - 7pm to midnight (December 31)

Queensland

  • Labour Day (May 3)
  • Royal Queensland Show (August 11)
  • Christmas Eve - 6 pm to midnight (December 24)

South Australia

  • Adelaide Cup Day (March 8)
  • Labour Day (October 4)
  • Christmas Eve - 7pm to midnight (December 24)
  • New Year's Eve - 7pm to midnight (December 31)

Tasmania

  • Royal Hobart Regatta (February 8)
  • Eight Hours Day (March 8)
  • Easter Tuesday (March 30)
  • Royal Hobart Show (October 21)
  • Recreation Day (November 1)

Victoria

  • Labour Day (March 8)
  • Friday before the AFL Grand Final (TBC)
  • Melbourne Cup (November 2)

Western Australia

  • Labour Day (March 1)
  • Western Australia Day (June 7)

Five common annual leave questions answered 

1. Can employers force employees to take annual leave? 

Yes, is the short answer. There are a situations in which an employer can compel a worker to take annual leave, such as during a shutdown period (e.g. over the Christmas break) or if someone has amassed an excess leave balance.

2. Will you keep accruing annual leave while you're on annual leave? 

Yes. You could be lounging next to a pool using annual leave and still be (slowly) building up your leave balance while you're away. It also continues to accrue while you're on sick or carer's leave, long service leave or even when you're on certain kinds of unpaid leave (such as jury duty).

3. Can you use sick leave for a mental health day? 

It's certainly possible to take time off for your mental health, but unless your employer provides dedicated mental health days, it will generally need to be taken as sick leave or personal leave.

4. Can sick leave be taken while on annual leave? 

It's not a situation anyone will want to find themselves in, but imagine travelling overseas for a much-needed holiday only to be struck down with the flu.

Burning through your precious annual leave while you're cooped up in bed doesn't sound much fun, so the good news is that it is possible to use your sick leave in that situation.

5. Can you take leave without pay or leave at half pay? 

It's possible, but taking leave at half pay or without pay may come down to an employers' discretion or the particular award someone is on. For example, the Fair Work Ombudsman says that some awards do allow employees to take leave at half pay.

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Tom Watson is a senior journalist at Money magazine, which won three awards at the 2026 Mumbrella Publish Awards, and one of the hosts of the Friends With Money podcast. He's previously worked as a journalist covering everything from property and consumer banking to financial technology. Tom has a Bachelor of Communication (Journalism) from the University of Technology, Sydney. Connect with Tom Watson on LinkedIn.