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_LizW(Initiate)Initiate
31 May 2021

I am getting a geninue volunatry redunancy and my last day is 30 June , however I have been advised that our lump sum will not get paid until 8 July 2021. My question is does the taxable part of our VR count towards any earnings for the financial year of 1 July 2021-30 June 2022.

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5 replies
1,643 views
5 replies

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Most helpful replyATO Certified Response

_DavidATO(Community Support)Community Support
ATO Certified Response1 June 2021

Hi @LizW,

You will need to report the payments received for the financial year (FY) it falls in. In your case, you are expected to receive it 8 July 2021 which falls into 2022 financial year and needs to be reported in the 2022 FY.

I have found some information for end of financial year payments to employees with some examples.

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Most helpful replyATO Certified Response

_DavidATO(Community Support)Community Support
ATO Certified Response1 June 2021

Hi @LizW,

You will need to report the payments received for the financial year (FY) it falls in. In your case, you are expected to receive it 8 July 2021 which falls into 2022 financial year and needs to be reported in the 2022 FY.

I have found some information for end of financial year payments to employees with some examples.

_LizW(Initiate)Initiate
1 June 2021

Sorry another question, if I do get paid in the 2022 financial year, then I get a new job in the new financial year , is the component that is not subject to tax count towards my wages earned for the 2022 financial year and then subject to tax.??

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Genuine Redundancy does the date you get paid out effect your earnings | ATO Community