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Re: Redundancy for over 65's

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If you are over 65 and made redundant are you entitled to the same tax concessions as under 65

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No.  There are age related and other restrictions in regards to genuine redundancy payments, this falls falls under Section 83-175 of the Income Tax Assessment Act 1997.  https://www.ato.gov.au/law/view/document?docid=PAC/19970038/83-175

 

The ATO has a good public ruling on this matter, which I suggest you have a read of: Refer TR2009/2 para 282 and 283

https://www.ato.gov.au/law/view/document?DocID=TXR/TR20092/NAT/ATO/00001#ft25

 

Corrected and updated thanks to @macfanboy

2 REPLIES

Best answer

ATO Certified

MVF
Devotee

Replies 1

No.  There are age related and other restrictions in regards to genuine redundancy payments, this falls falls under Section 83-175 of the Income Tax Assessment Act 1997.  https://www.ato.gov.au/law/view/document?docid=PAC/19970038/83-175

 

The ATO has a good public ruling on this matter, which I suggest you have a read of: Refer TR2009/2 para 282 and 283

https://www.ato.gov.au/law/view/document?DocID=TXR/TR20092/NAT/ATO/00001#ft25

 

Corrected and updated thanks to @macfanboy

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There are age limits on what is considered to be genuine reduncy:

 

Age-based limits

282. An employee receiving a genuine redundancy payment must, at the time of dismissal, be aged less than 65 or less than a younger age of compulsory retirement for the particular position in question. For example, if an employee in a particular position is required to retire at age 60, then the person can only receive a genuine redundancy payment if he or she is less than 60 years old when the dismissal occurs.

283. A termination payment made to a person who has reached age 65 or another age of compulsory retirement at the time of dismissal would be an employment termination payment if the conditions in section 82-130 are satisfied.

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