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Employment Terminated - Tax and Centrelink?

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

  1. Henk bastiaanse

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    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
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    Why would there not be tax on your final payment?
     
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  3. Rod

    Rod Well-Known Member

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    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.
     
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  4. Shan

    Shan Active Member

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    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

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    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

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    Don't know sorry.
     
  7. Rod

    Rod Well-Known Member

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    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.
     
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