13 July 2020
Genuine redundancy and early retirement scheme payments are tax free up to a limit based on the employee's years of service. The rules around these payments have changed.
The age at which employees can access concessional tax treatment for genuine redundancy and early retirement scheme payments has been extended from the age-based limit of 65 years to age-pension age.
The change applies to employee termination payments (ETPs) made to employees who were dismissed or retired on or after 1 July 2019.
If you paid an employee an ETP before 29 October 2019 and they met all the requirements of a genuine redundancy except for the age limit they may have had more tax withheld than would be required under the new law.
Find out about:
Related news items
The 2020-21 study and training support loans tax tables are here.
Single Touch Payroll means changes to your end-of-financial-year processes.
Information about the business monthly declaration.