Redundancy payments are in the air again, with the WA Government announcing plans to cut the number of public servants.
However, there is a nasty little surprise lurking in the tax laws for people over age 65. The tax treatment is very different either side of 65.
Just to be clear, what we are talking about are specific REDUNDANCY PAYMENTS. These are separate from superannuation and a range of other exit payments. Broadly speaking, a redundancy payment is a specific extra payment that is made when an employees’ job has been abolished, and the person is no longer required. Redundancies can be either voluntary, or not.
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