LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

Employment Terminated - Tax and Centrelink?

Discussion in 'Employment Law Forum' started by Henk bastiaanse, 10 July 2014.

  1. Henk bastiaanse

    Joined:
    10 July 2014
    Messages:
    2
    Likes Received:
    0
    My position was restructured and I was terminated with time in lieu of notice was payed however with no tax to be paid on the final payment my question is was my former employer allowed to give my pay advice slip to Centrelink?
     
  2. Tim W

    Tim W Lawyer

    Joined:
    28 April 2014
    Messages:
    1,722
    Likes Received:
    403
    Why would there not be tax on your final payment?
     
    Rod likes this.
  3. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,175
    Likes Received:
    259
    If you want Centrelink payments you generally have to play by their rules. If the employer doesn't give them the payslip they can demand it from you. Does it really matter which way it happens? With years of welfare fraud experience the people at Centrelink often need to see original documentation.
     
  4. Shan

    Shan Active Member

    Joined:
    11 July 2014
    Messages:
    6
    Likes Received:
    0
    You may have been below the tax free threshold (depends on years in the role and level of pay) - tax free amounts are readily available from gov websites. Centrelink will want to know how much you received as it determines how long before you receive benefits. As far as I am aware anyway.
     
  5. Henk bastiaanse

    Joined:
    10 July 2014
    Messages:
    2
    Likes Received:
    0
    Normal wages + holiday pay was taxed as per usual; 10 weeks redundancy payment was not as per normal tax rules.
     
  6. Shan

    Shan Active Member

    Joined:
    11 July 2014
    Messages:
    6
    Likes Received:
    0
    Don't know sorry.
     
  7. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,175
    Likes Received:
    259
    I think redundancy is taxed as an ETP (Employment Termination Payments) and there's a a whole set of rules around ETPs.

    Best to check with the ATO before you spend your money and find out there's a large tax component you need to pay.
     

Share This Page

Loading...