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2 November 2017
just need clarification on the Geniune Redundancy tax free component
if an employee has been with the company for 1.5 years
and he is being made redundant
he gets paid 4 weeks redundancy pay
his tax free component will be
9936 + (4969 *1) = $14905
any amounts over $14905 will be taxed as ETP
Most helpful response
ATO Certified Response
6 November 2017
Welcome to our Community!
There are a number of factors which need to be consider when working our redundancy payments, so we can provide you with general information here on our Community.
If a genuine redundancy has occurred a tax-free limit will be available to the employee. That is:
Base amount + (service amount x completed years of service)
Any amount more than the genuine redundancy limit is an ETP. You can find useful information including examples on our website.
If you have further question you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.
Australian Taxation Office
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