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Hi there
Just looking at the tax free redundancy in the below website.
https://www.ato.gov.au/business/your-workers/in-detail/taxation-of-termination-payments/?page=4
Can you please advise where does that "service amount" come from?
Thanks.
Most helpful response
19 November 2020 12:02 PM - edited 19 November 2020 12:03 PM
Replies 1
Hello @alooi
When we calculate the tax free limit, the service amount is a set amount for each year of service. There is a table on our website that shows what the base and service amounts are for each income year.
If you have a look at the 2020-21 income year in the table, the base amount is $10,989 and the service amount is $5,496, therefore it would be calculated as follows:
$10,638 + ($5,320 × years of service) = tax free limit
Hope this makes sense. Have a great day
Most helpful response
19 November 2020 12:02 PM - edited 19 November 2020 12:03 PM
Replies 1
Hello @alooi
When we calculate the tax free limit, the service amount is a set amount for each year of service. There is a table on our website that shows what the base and service amounts are for each income year.
If you have a look at the 2020-21 income year in the table, the base amount is $10,989 and the service amount is $5,496, therefore it would be calculated as follows:
$10,638 + ($5,320 × years of service) = tax free limit
Hope this makes sense. Have a great day
Hi TonyATO
thank you very much for your help.
Much appreciated
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