Redundancy: some matters to consider

From time to time employers offer (or are committed to) redundancy payments for unscheduled termination of employment arrangements: there are a number of issues to consider if you are placed in this situation – taxation consequences for each of the elements of the payout; superannuation options that may be available; and how your payout might impact any entitlement to Centrelink support. (Voluntary Separation Packages (VSPs) will usually contain similar elements [...]

By |2018-02-06T14:11:05+10:00January 31, 2012|Superannuation Strategies, Wealth Management|0 Comments

Termination Payment categories taxed differently

  What termination payment categories might be received on ceasing employment? Employment termination payment categories can usually be grouped as one or more, of: redundancy payment; accrued leave entitlements; and ex-gratia payments. Each will be treated according to the relevant taxation rules. There are special (concessional) taxation provisions that apply to an eligible 'employment termination payment' received consequent to dismissal from employment under specified circumstances. What constitutes and eligible termination [...]

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