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WA Pay Tax for Redundancy Payment?

Discussion in 'Employment Law Forum' started by Carmen Nisa, 25 July 2016.

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  1. Carmen Nisa

    Carmen Nisa Member

    23 July 2016
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    I used to have 2 different roles, with 2 different contracts and 2 different rates of pay within the same company. Last year, I was made redundant from one of the position (the one with the higher rate of pay) and I was paid redundancy. It was mentioned to me at that time, about the fact that my redundancy had to be taxed as I still got the other contracted part time job with them and in my case, this was called "partial redundancy" Is that true?

    Plus, on my pay slip, when the redundancy payment was done, they named it "bonus". Now, on my pay summary 2016, it did not specify anything about my redundancy payment. I do have the notice letter and the redundancy calculation payment notification to prove it.

    Please, can you clarify this to me as I know the redundancy payments are usually free of tax up to certain level (my redundancy payment was about $10,000) and why the amount has not been shown separately on my payment summary 2016. Because of that, it looks like I had an increase in my pay last year, but in fact I lost one of my jobs.
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    Yes, unless the employer can offer you comparable work without a substantial drop in salary etc then they have to pay you a redundancy. So yes whatever they call it its a redundancy from one of your jobs.

    As you are aware, a genuine redundancy payment is tax free up to a limit. If your redundancy does not meet the definition of genuine redundnacy then it will be taxed under the normal employment termination payment rules. You may have grounds to argue that your redundancy is genuine.

    I would approach your employer and ask them about it - it could just be a mistake. If not and they refuse to correct it, you can complain to the Fair Work Ombudsman. Help resolving workplace issues - How we help you - Fair Work Ombudsman

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