Hi there,
I am an employee of a global firm for 13 years total, 10 years was with the firm overseas, and the most recent 3 years in Australia after transferring here.
I have been recently made redundant, and would like to understand for the purpose of the redundancy payment tax-free limit years of service calculation, how many years of service would I have with the firm?
Thank you.
Hi @EasterlyDrake13,
It is your total years of service with your employer, which you advised is 13yrs.
The website advises - A genuine redundancy payment is a payment made to you as an employee if you're dismissed because the job you were doing has been abolished. This means your employer has made a decision that your job no longer exists, and your employment is to be terminated.
Your genuine redundancy payment is:
The tax-free amount is not part of the employee's ETP. It's reported as a lump sum in the employee's income statement or PAYG payment summary individual non-business. Any amount over the tax-free limit is part of the employee's ETP.
Link-
Redundancy payments.
All the best.
Hi @EasterlyDrake13,
If it's a genuine redundancy you'll receive, the payment will include a portion that is tax-free. This is up to a limit based on your years of service.
The purpose of the years of service is to calculate the tax-free limit. A formula can be found on our website with examples to help you gain a better understanding of how the years of service influences the tax-free component.
Tax-free formula
I wish you all the best.
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