@NickWest
Hi Nick,
This is all about Genuine Redundancy.
If you are being transferred to new company from your current/leaving company and all of your entitlement have been also transferred with you to new company, then the chance of you receiving Redundancy would be zero but if you are applying through the traditional way of joining a company by applying for a job with them and the current/leaving company has no power in decision making and none of your entitlements wont be transferred to new/incoming company, then it would be seen as a genuine redundancy and the leaving company by law has to pay its employees.
Here's some extra information:
A redundancy is considered genuine if your employer no longer requires your job to be performed by anyone due to operational changes, and the dismissal is not due to your misconduct or voluntary resignation. ATO.gov.au
For the 2024โ25 financial year, the tax-free limit is calculated as a base amount of $12,524 plus $6,264 for each completed year of service (not more than 5 years) a total of $12,524 + ($6,264x5) = $43,844 . Any amount above this limit is taxed as an employment termination payment (ETP). ATO.gov.au This does not mean that you are entitled for $43,844 for your redundancy (as so many people confuse themselves) and only means that if you receive more that $43,844 from your employer, the remaining will be taxed. Please note this is only redundancy payment calculation and does not include your other entitlements such as Annual leaves or other bonuses.
The timing of your new employment does not impact the tax-free status of a genuine redundancy payment. Even if you secure a new job the next day, the tax treatment of your redundancy payment remains unchanged. ATO.gov.au
Some people think that getting a job quickly makes the redundancy "non-genuine" and fully taxable, this is not true. As long as your redundancy meets the legal definition (your role was no longer needed and the employer followed the correct process), your tax-free redundancy amount remain safe and if your employer trying to avoid paying your redundancy then you may need to seek legal advise.
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