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Redundancy

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hi

I am taking redundancy, which is voluntary, I am 65, I have been informed by my pay office that I don't pay tax on this amount as it is under $200k for ETP, everything I read says it should be taxed at 17.5% , is this correct that tax is not applied in this instance

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Hi @sarahjane231153

 

Welcome to our Community!

 

There are a number of factors to consider when working out how much tax is to be withheld from a redundancy or ETP payment and we don't know all the details to be able to provide a definite answer. 

 

If you're receiving an ETP because of a genuine redundancy and early retirement, payments are tax free up to a limit based on the employee's years of service. The ETP cap amount for the 2018–19 income year is $205,000 and is indexed annually. 

 

If you have more information about your ETP payment, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to discuss in more detail with an operator. 

 

Thanks, JodieH. 

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ATO Certified Response

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Hi @sarahjane231153

 

Welcome to our Community!

 

There are a number of factors to consider when working out how much tax is to be withheld from a redundancy or ETP payment and we don't know all the details to be able to provide a definite answer. 

 

If you're receiving an ETP because of a genuine redundancy and early retirement, payments are tax free up to a limit based on the employee's years of service. The ETP cap amount for the 2018–19 income year is $205,000 and is indexed annually. 

 

If you have more information about your ETP payment, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to discuss in more detail with an operator. 

 

Thanks, JodieH.