Answers · 2026-27
An employee is made genuinely redundant after 8 completed years and receives A$83,750. How much is tax free?
The answer
A$68,006
tax free
The tax-free amount is A$13,598 plus A$6,801 for each of 8 completed years.
How it was computed
| Redundancy base | A$13,598 |
|---|---|
| Amount per completed year | A$6,801 |
| Completed years | 8 |
| Tax-free amount | A$68,006 |
| Taxable excess | A$15,744 |
| Withholding on excess | A$5,038 |
Assumes the employee is under preservation age, is genuinely redundant, has provided a TFN, and the A$83,750 payment is the redundancy amount.
Prior years
| 2025-26 | A$65,516 |
|---|
Ask it about your own figures.
The same working, with its source.