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Re: Redundancy

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Newbie

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Hello,

I recently was made redundant(May 25th 2018).

 

I received my Group certificate and it shows the lump sum in Payment D.

 

But everything else was put in as a wage?

 

I had some unused Annual Leave  as well as all my Long Service Leave(worked for 9 1/2 years for same company).

 

So my question is was I meant to pay the same tax rate for the above as a normal wage or should any money that was paid out to me be in another payment summary section?

 

When they paid my last Salary everything was put together and taxed at normal rate(except for the redundancy 16 weeks).

 

I normally do my own Tax at the My Gov site but feel like this isnt right?

 

Thanks for any help.

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Most helpful response

Devotee

Replies 0

Hi @Barbara67,

 

Thanks for posting! We can help you find some useful information about employment termination payments, but we can't advise whether any mistakes were made. There are a number of factors that will affect how your payment was taxed, and we don't have all the details we'd need to check.  

 

Generally speaking, payments for unused annual and long service leave may be taxed at concessional rates, depending on how your employment is terminated and when you accrued the leave. Unused annual and long service leave are not part of your employment termination payment (ETP).

 

There are different kinds of payments that may make up an eligible termination payment - check out our payments that are ETPs table for examples of payment types and how tax will apply. We also produce a termination payments for employees guide on our website that explains how to report your ETP on your tax return and other important concepts like the ETP cap.


There's a lot to get your head around, so if you're not sure whether your ETP is right, the best place to start is by contacting the payroll office for your former employer. They should be able to explain how your payment was calculated and how tax was applied.

 

You can also phone us to discuss your payment summary further - phone 13 10 20 between 8:00am and 6:00pm Monday to Friday and select option 2, then option 3 to talk to us.

 

Hope that helps!

1 REPLY 1
Highlighted

Most helpful response

Devotee

Replies 0

Hi @Barbara67,

 

Thanks for posting! We can help you find some useful information about employment termination payments, but we can't advise whether any mistakes were made. There are a number of factors that will affect how your payment was taxed, and we don't have all the details we'd need to check.  

 

Generally speaking, payments for unused annual and long service leave may be taxed at concessional rates, depending on how your employment is terminated and when you accrued the leave. Unused annual and long service leave are not part of your employment termination payment (ETP).

 

There are different kinds of payments that may make up an eligible termination payment - check out our payments that are ETPs table for examples of payment types and how tax will apply. We also produce a termination payments for employees guide on our website that explains how to report your ETP on your tax return and other important concepts like the ETP cap.


There's a lot to get your head around, so if you're not sure whether your ETP is right, the best place to start is by contacting the payroll office for your former employer. They should be able to explain how your payment was calculated and how tax was applied.

 

You can also phone us to discuss your payment summary further - phone 13 10 20 between 8:00am and 6:00pm Monday to Friday and select option 2, then option 3 to talk to us.

 

Hope that helps!