Beware the Voluntary Redundancy Option

If you are offered a voluntary redundancy, please ensure that it an “approved scheme” by the ATO before accepting it. The ATO will issue a class ruling when it is happy the offer complies.

If it is a complying scheme then it is taxed in the same way as any other redundancy. So that is good.

If it does not have the ATO tick then it is taxed as a golden handshake. This means no tax free element and concessional rates (dependent on your age) only apply if your other income in the year is less than $180k. Over that, and it will be taxed as normal income.

Lindsay 0413 952 180

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