Can anyone advise on redundancy and tax implications? Can one start a casual job as soon as one is made redundant without affecting the payout ? I don't want any nasty surprises next July. I'm making an appointment with the accountant tomorrow but thought I'd ask tonight.
I was given the option to leave immediately, or wait (and hope) for reposting. I later found out had I chose the latter, the payout will not be taxed. But by staying a further 3 months, my pay was treated as normal salary and got taxed, along with Rec Leave and all that.
I only know what applies to my industry based on recent experience. The ATO or your advisor will give you the correct answer. The redundancy portion should be tax free regardless if you find another job. However if you are offered alternative employment with your current employer you may have to give some money back. I am not licensed to give tax advice. Pob lwc.
Dylan once you're made redundant you are basically free to work. The severence pay is compensation for losing your job. There is a tax free limit that applies. You might need to do some research off your own bat to find out how many weeks pay are tax free. A little homework for you lol. But it doesn't end there. That severence pay can also affect how long you have to wait before getting the dole. Also if you were a Federal Public Servant there may a clause stating you can't rejoin the bludgers brigade for 12 months.
He didn't say that he was a casual, only that he wanted to start a casual position. Info from ato: Redundancy payments