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Let’s look at the taxing of discretionary trusts; if you’re a business owner and use a discretionary trust to mitigate some of your business risk, you...

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Watch our rundown on the 2019/20 Budget

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Access to Genuine Redundancy Payments

The age below which individuals can receive genuine redundancy and early retirement scheme payments will be changed to align it with the Age Pension qualifying age. This means that all individuals below the Age Pension qualifying age will have access to the tax concession that makes part of any genuine redundancy payment free of income tax (the tax-free component), this will take effect from 1 July 2019.

Currently, individuals aged 65 and over are not eligible to receive a genuine redundancy payment, including the tax-free component, because of their age at the time of their dismissal. This means that there are some older Australians who, due to their age, cannot access either the Age Pension (currently 65.5 and rising to 67 by 1 July 2023) or the tax-free component of genuine redundancy payments. The Government has introduced this measure to assist older Australians who receive a redundancy payment but are not yet able to receive the Age Pension. (source from 2018-19 MYEFO papers)