Increase Your 2014 Tax Refund

Do any of these apply to your 2014 tax refund calculation?

• Allowances - Common for many workers, is it income and what deductions can be claimed?
  
• Work Related Deductions - Common for most workers, what expenses can you claim?
• Travel Expenses & Overtime Meal Allowances - Common in Transport and Construction, what rate applies to you?

Redundancy Payment Calculator, Preservation Age and Tax Rates

(last updated 27/03/2014)

Related posts:

• Lump Sum Payments on Termination of Employment
• Lump Sum A
• Lump Sum B
• Lump Sum D - Redundancy Payments
• Lump Sum E
• Death Benefit ETP
• Termination Triggers
• Whole of Income CAPS
• Tax Table of Unused Leave Payments 
• Tax Table of ETP's

Preservaton Age and ETP's

Tax on ETP amounts can vary based on “Preservation Age”. See this post for details on NEW rules on ETP Caps and tax rates.

See this post for details on Tax Free components of a Redundancy Payment.

Preservation in the context of Eligible Termination Payments (ETP’s) determines the tax applicable to the payment.

Preservation age is determined using your employee’s date of birth. The preservation table below shows the preservation age based on date of birth:

Date of birth	Preservation age
before 1/7/1960	55
1/7/1960 – 30/6/1961	56
1/7/1961 – 30/6/1962	57
1/7/1962 – 30/6/1963	58
1/7/1963 – 30/6/1964	59
After 30/6/1964	60

Tax rates applicable to ETP’s are as follows:

• Under preservation age – Up to the ETP cap amount – 31.5% (including Medicare Levy)
• Preservation age or over – Up to the ETP cap amount 16.5% (including Medicare Levy)
• All employees Over the ETP cap amount 46.5% (including Medicare Levy)

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:

• checklist of eTax and Assessable Income 
• checklist of eTax and Allowable Deductions

For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

Redundancy Payment Calculator Australia

(last updated 30/06/2015)

Related posts:

• Lump Sum Payments on Termination of Employment
• Lump Sum A
• Lump Sum B
• Lump Sum D - Redundancy Payments
• Lump Sum E
• Death Benefit ETP
• Termination Triggers
• Whole of Income Caps
• Tax Table on Unused Leave Payments 
• Tax Table on ETP's
• Tax Table on Superannuation Lump Sum

Redundancy Payment - Lump Sum D. 

A genuine redundancy payment is a payment you receive because the job you were doing is abolished. That is, your employer has made a decision that the job you are doing no longer exists and your employment is to be terminated. The Genuine Redundancy Paymnet is shown as Lump Sum D on your PAYG Paymnet Summary.

A genuine redundancy has special tax treatment under the tax law where an amount paid up to a limit (or CAP) is tax free. If your redundancy does not meet the definition of genuine redundancy then it will be taxed under the normal employment termination payment (ETP) rules - see our post on Tax Table of ETP's.

A genuine redundancy payment is made up of two components:

1. A TAX FREE amount and 
2. An assessable amount==> see our post Tax Rates On Excessive Redundancy Component

Tax Free Amount of Redundancy Payment:

To work out the tax free amount of a Genuine Redundancy Payment use the following formula:

Base amount + (service amount × years of service)

Below is a table setting out the Base Rates and Service Limits for a number of years.

Example - the tax free component for 2013 would be $8806 + ($4404 x years of service)

Income year	Base limit	For each complete year of service
2015-16	$TBA	$TBA
2014-15	$9,514	$4,758
2013-14	$9,246	$4,624
2012-13	$8,806	$4,404
2011-12	$8,435	$4,218
2010-11	$8,126	$4,064
2009-10	$7,732	$3,867

The tax free amount is non-assessable/non-exempt income - ie it is not included as normal taxable income in your tax return but is included as exempt income.

Note: the base amount and the service amount are indexed annually.

Assessable amount of Redundancy Payment:

Rollover of Excessive Redundancy Payment (Elligible Termination Payment)

After any tax-free component has been deducted, the balance of the excessive redundancy payment or Eligible Termination Payment (ETP) (assessable amount) is taxed at a concessional rate up to a limit called the ETP cap amount.

From 1 July 2007, you cannot contribute or roll over any excessive redundancy payment (ETPs) you receive

Tax Rates on Excessive Tax Free Redundancy Payments (Eligible Termination Payment)

(last updated 27/03/2014)

Related posts:

• Lump Sum Payments on Termination of Employment
• Lump Sum A
• Lump Sum B
• Lump Sum D - Redundancy Payments
• Lump Sum E
• Death Benefit ETP
• Termination Triggers
• Whole of Income CAPS
• Tax Table of Unused Leave Payments 
• Tax Table of ETP's

Tax Rates on Assessable Redundancy Payments

A genuine redundancy payment is a payment you receive because the job you were doing is abolished. That is, your employer has made a decision that the job you are doing no longer exists and your employment is to be terminated.

A genuine redundancy has special tax treatment under the tax law where an amount paid up to a limit is tax free. If your redundancy does not meet the definition of genuine redundancy then it will be taxed under the normal employment termination payment rules.

A genuine redundancy payment is made up of two components:

1. a tax free amount and ==> see our post Redundancy Payment Calculator
2. an assessable amount==> see tax rates below

After any tax-free component has been deducted, the balance of the Eligible Termination Payment (ETP) (assessable amount) is taxed at a concessional rate up to a limit called the ETP cap amount.

Tax on Excessive Redundancy Payment (ETP):

Affected by Redundancy?

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At My Tax Zone we work with clients who are affected with redundancy. In addition to providing advice on taxation and redundancy, we can also help you to:

• Manage your redundancy payment in the most tax effective way
• Develop strategies to manage cash flow needs while out of work
• Consider options for managing your superannuation
• Obtain Government income support while looking for a new job

Redundancy and Insurance

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Many Australians have insurance cover provided by their employer under a “group insurance” or superannuation arrangement. Terminating employment, either voluntarily or as a result of redundancy can have serious implications in relation the insurance cover provided by an employer or through existing superannuation arrangement.

Insurance cover may take a number of forms:

Death – this is a basic type insurance cover that provides for the payment of a benefit, the sum insured, in the

Dealing with redundancy

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You can also see our post ==> Redundancy Payment Tax Calculator

When an employer decides to downsize, the staff affected may be entitled to a number of payments. Often these are set out in an award or agreement, or an employment contract. Where a person ceases to be employed, they will be entitled to their wages or salary for work completed up to the time they cease to be employed. In addition, they may be entitled to payment for any unused rostered days off (RDOs) and any accumulated leave they have not taken, be it annual leave and/or long service leave. Payment for unused