Redundancy – Tax Facts

“According to the ATO, a bona fide redundancy payment is defined as compensation received by an employee under the age of 66 upon being dismissed from their job due to a genuine redundancy. This requires that:

  • The payment in question is directly linked to the employee’s termination.
  • The termination involves the employee’s dismissal from their job.
  • The dismissal is due to the redundancy of the position.
  • The redundancy payment is made solely as a result of the redundancy.”

 

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