A genuine redundancy payment is made up of two components:
a tax free amount and
an assessable amount==> see our post Tax Rates On Excessive Redundancy Component
Tax Free Amount:
The tax free amount is non-assessable/non-exempt income.
For 2009/10, the tax free amount is worked out by the formula:
Base amount + (service amount × years of service)
(where: the base amount [...]
A genuine redundancy payment is made up of two components:
a tax free amount and ==> see our post Redundancy Payment Calculator
an assessable amount
Tax on Excessive Redundancy Payment (ETP):
After any tax-free component has been deducted, the balance of the Eligible Termination Payment (ETP) (assessable amount) is taxed at a concessional rate up to a limit called [...]
After any tax-free component has been deducted, the balance of the excessive redundancy payment or Eligible Termination Payment (ETP) (assessable amount) is taxed at a concessional rate up to a limit called the ETP cap amount.
From 1 July 2007, you cannot contribute or roll over any excessive redundancy payment (ETPs) you receive into your super fund, unless [...]
Australia’s largest ever binding sales contract has been signed by UK-based BG Group and the China National Offshore Oil Corporation (CNOOC). The 20-year deal will see 3.6 million tonnes of LNG shipped to China each year from the proposed Curtis Island plant in Queensland.
The project is expected to generate 5,000 jobs during construction and 1,000 [...]
At My Tax Zone we work with clients who are affected with redundancy. In addition to providing advice on taxation and redundancy, we can also help you to:
Manage your redundancy payment in the most tax effective way
Develop strategies to manage cash flow needs while out of work
Consider options for managing your superannuation
Obtain [...]
Many Australians have insurance cover provided by their employer under a “group insurance” or superannuation arrangement. Terminating employment, either voluntarily or as a result of redundancy can have serious implications in relation the insurance cover provided by an employer or through existing superannuation arrangement.
Insurance cover may take a number of forms:
Death – this is a [...]
You can also see this post ==> Redundancy Payment Calculator
When an employer decides to downsize, the staff affected may be entitled to a number of payments. Often these are set out in an award or agreement, or an employment contract. Where a person ceases to be employed, they will be entitled to their wages or [...]
