Redundancy Payouts in Australia: What You’re Entitled To
Losing a job is tough — but understanding your payout doesn’t have to be. Here’s how redundancy works in Australia, and how to calculate what you’ll actually receive.
What Is a Redundancy Payout?
When your role is made redundant, you may be entitled to a lump-sum payout. This typically includes:
- Redundancy pay — based on years of service
- Unused annual leave — paid out in full
- Unused long service leave — if eligible
- Notice period pay — if not worked
Some employers also offer additional ex gratia payments or career transition support.
How Is It Taxed?
Redundancy payments are taxed differently depending on the component:
- Genuine redundancy — tax-free up to a threshold based on age and service
- Leave balances — taxed at marginal or concessional rates
- Excess amounts — taxed as employment termination payments (ETPs)
It’s important to check whether your payout qualifies as a genuine redundancy under ATO rules.
Use the Calculator
Our Redundancy Payout Calculator helps you:
- Estimate your total payout based on salary and service
- Break down leave balances and tax treatment
- See your net payment after tax
It’s fast, transparent, and built for Australians navigating change.
Example Scenario
Sarah has worked full-time for 8 years and earns $85,000 annually. Her employer offers:
- 8 weeks redundancy pay
- 3 weeks unused annual leave
- Notice period paid in lieu
Using our calculator, Sarah sees her estimated net payout after tax is around $14,800.
Next Steps
- Confirm your entitlements with HR or your award
- Check your leave balances and final payslip
- Use our calculator to plan your finances
- Consider speaking to a financial adviser
Final Thoughts
Redundancy can feel overwhelming — but clarity helps. With the right tools and information, you can make confident decisions about your next move.
Try the Redundancy Payout Calculator now and take control of your transition.
Disclaimer: This article is general in nature and does not constitute financial or legal advice. Always confirm your entitlements with your employer and seek professional guidance if needed.