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dorey64(Initiate)Initiate
2 Jan 2024

maybe getting a genuine redundancy this year around my 60th , have heard if have reached preservation age ( 60yrs ) tax rate goes from 30c to 15 on my taxable payout. is this correct ?

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Bruce4Tax(Taxicorn)Taxicorn
2 Jan 2024

Genuine redundancy payments are tax free up to a limit based on length of service.


https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/in-detail/taxation-of-termination-payments/redundancy-and-early-retirement


Amount in excess is an ETP.


https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/leaving-your-job/employment-termination-payments-for-employees/how-etp-components-are-taxed



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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
2 Jan 2024

Genuine redundancy payments are tax free up to a limit based on length of service.


https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/in-detail/taxation-of-termination-payments/redundancy-and-early-retirement


Amount in excess is an ETP.


https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/leaving-your-job/employment-termination-payments-for-employees/how-etp-components-are-taxed



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with a genuine redundancy is there different tax rates if over 60yrs (preservation age)or under 60 | ATO Community