Whether you have asked for the redundancy or not, you need to understand how to deal with your final payment
Wendy was offered a redundancy package by her employer, who was rationalising the business. The redundancy was deemed as "bona fide" by the Australian Tax Office, as Wendy’s position was no longer required by her employer.
Wendy had been employed at the company for 32 years, and therefore her payment was substantial. Wendy was given some flexibility in regard to her finish date, which was scheduled around the end of the financial year.
So Wendy now had to make decisions about the financial implications of the numerous components of her redundancy package and the timing of her departure. Some of the issues Wendy had been anxious about were:
- How much tax will I pay?
- Should I finish in June or July?
- What should I do with my Long Service Leave?
- Can I invest any of the package in superannuation?
- Will I have enough money to live on?
- Am I eligible for any Government assistance?
- Can I afford to work part-time and not full-time?
Wendy was referred to us by her sister. We were able to answer all her questions and give her sound advice that put her mind at ease. We also gave her advice about her investing her money.
Wendy was able to manage the timing of her departure which meant that she could minimise the amount of tax she paid on the redundancy payment, and she was able to boost her savings by contributing some of the payment to her superannuation account.
Wendy was fortunate enough to find some part time work, and was also able draw upon her savings to supplement her income. Wendy was now in a financially stable position, able to spend more time with family and friends, and regularly travel. She is loving her semi-retirement.
* Names have been changed to protect client privacy.
What to do next:
If you have been made redundant or are considering redundancy we can help you review your options.
Please contact us today on 03 8394 0300 or email us at firstname.lastname@example.org to organise a time to speak with us.