Receiving a redundancy can be a difficult and emotional period, however at this time it is important you make the correct financial decisions in order to minimise tax.
An Investor Wealth Adviser will help you understand the various components and tax implications. They will also explain some important issues with redundancy payments including the following:
- Genuine Redundancy payments – A portion of this is tax free depending on years of completed service.
- Employment Termination Payment (ETP) – This may include a number of different components including any excess payment over the tax free component.
- Accrued Annual and Long Service Leave– These payments are also taxed at various rates depending on years of service.
Your personal circumstances will be taken into account and speaking to one of our Advisers will ensure you not only understand the tax implications, but you also implement the right strategy to suit your requirements.