Redundancy Payment

James Murphy Tax

I need to make a redundancy payment but need some advice on how to calculate the payment correctly.


We take it the payment has been negotiated and that it is only a matter of determining the tax treatment.

If it is a genuine bona fide redundancy, then the following tax treatment applies.

No tax will be payable on $11,341 plus $5,672 for each year of completed service.

The balance of the payment will be an Eligible Termination Payment.

The tax treatment will depend on the recipient’s age – refer to page 10 of our 2022 annual publication.