I am a Public Servant considering applying for VTSS. I am 61 years old and have been with the Department for over 42 years.
67 views
67 views2 replies
2 replies
67 views
2 replies
All replies
It really depends on how much each of the different components of the payment are. You would need to speak to your employer in the first instance to find that out. Broadly by way of background:
Genuine redundancy payout: if the conditions of redundancy and the payment meets the requirements, the amount paid out in respect of redundancy itself (not leave, or payments in lieu of notice etc...) is tax free to a max of $13,100+$6,552 per year of service. If it's genuinely been the same employer (no change of contract etc...) then that would put the tax free cap for the redundancy component of the payout pretty high for you, but that's subject to meeting all the conditions.
Payouts of unused annual leave and LSL in conjunction with a genuine redundancy is taxed at your marginal tax rate with a max of 30% plus Medicare
But there are usually lots of other components of a termination payment and lots of nuances about how it's done, so don't take ANY action without getting the details of the proposed payout from your employer and getting a tax agent to confirm the tax treatment
Thank you for your advice. Very helpful and yes I will definitely seek further advice from my employer. Cheers.
Featured articles
15 Apr 2026 · 8 min read time
6 Feb 2026 · 4 min read time
15 Apr 2026 · 4 min read time