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redundancy

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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

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Hi @Julianlin1981,

 

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.

 

Thanks.

 

 

 

1 REPLY 1
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Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Julianlin1981,

 

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.

 

Thanks.