The FisCalc
// EMPLOYMENT

Redundancy Calculator

Calculate your NES redundancy entitlements, severance pay, notice payout, and estimated tax for FY2025-26Rates current as at 1 July 2025 · ATO FY2025–26

// YOUR_EMPLOYMENT
$
Weekly Pay
$1,827
Daily Pay
$365
6 complete years
(Used for severance & tax-free limit calculations)
+1 week notice (age 45+, 2+ years service)
// LEAVE_ENTITLEMENTS
Payout: $5,481
Loading: $959
// PAYMENT_TYPE
Severance up to $50,102 is tax-free
Entire severance taxed as ETP at 17%

Your data stays on your device — nothing is stored or sent.

Total Payout
$31,697
Tax-free
$20,096
Taxable
$15,575
Est. tax
$3,973
Net payout
$31,697
Tax-free
$20,096
Est. Tax
$3,973
Net Pay
$31,697

Payout Breakdown

ComponentGrossTaxNet
Severance pay
11 weeks @ $1,827/wk
$20,096$0 ($20,096 tax-free)$20,096
Notice pay
5 weeks @ $1,827/wk
$9,135245144.2% = $2,451$6,683
Annual leave
15 days @ $365/day
$5,481152176.7% = $1,993$4,186
Leave loading (17.5%)
$959152176.7% = $227$732
TOTAL$35,671$3,973$31,697

Genuine Redundancy Tax-Free Limit

For 6 complete years of service:
$50,102
Base $12,524 + 6 years × $6,263
Severance allocation:
Tax-free: $20,096Taxable: $0

NES Entitlements

Severance weeks11 weeks
Notice weeks5 weeks
Weekly pay (base)$1,827
ℹ️

NES Minimum Entitlements

This calculator uses National Employment Standards (NES) minimum entitlements. Enterprise agreements or employment contracts may provide more generous terms. Award-covered employees should check their specific award. Long service leave rates vary by state.

Disclaimer

This calculator provides estimates based on National Employment Standards (NES) minimum entitlements for FY 2025-26. Individual employment contracts, enterprise agreements, or awards may provide higher entitlements.

Tax calculations are simplified. The ATO uses different withholding rules for termination payments, and individual circumstances vary. Notice pay and leave payouts are subject to HELP debt deductions and other individual factors not modelled here.

Employment Termination Payments (ETPs) have complex tax treatment depending on whether they are genuine redundancy, unused leave, or other circumstances. This calculator uses a simplified 17% ETP rate for amounts above the tax-free threshold.

This is not legal or financial advice. For your specific situation, seek specialist employment law advice from a qualified employment lawyer or financial adviser.

Next Step

Download Your Strategy Playbook

Lock in these tracking benchmarks and goals.

Total net payout: $31,697
Get Started →

🔒 Your inputs never leave your browser window. Calculations run entirely client-side.

Understanding Your Redundancy Entitlements

Redundancy is one of the most financially significant events a person can experience — and one of the most misunderstood from a tax and entitlements perspective. The National Employment Standards (NES) set minimum redundancy pay entitlements for employees covered by the Fair Work Act, based on years of continuous service. Your actual entitlement may exceed the NES minimum if your enterprise agreement or employment contract provides a more generous formula.

NES Minimum Redundancy Scale

The NES schedule pays: 1–2 years of service — 4 weeks; 2–3 years — 6 weeks; 3–4 years — 7 weeks; 4–5 years — 8 weeks; 5–6 years — 10 weeks; 6–7 years — 11 weeks; 7–8 years — 13 weeks; 8–9 years — 14 weeks; 9–10 years — 16 weeks; 10+ years — 12 weeks (note: the NES caps at 12 weeks for 10+ years, but enterprise agreements typically do not have this cap). Redundancy pay is calculated on your base rate of pay — it does not include overtime, shift penalties, bonuses, or allowances unless your enterprise agreement specifies otherwise.

Genuine vs non-genuine redundancy — the critical tax distinction

A "genuine redundancy" under section 83C of the Income Tax Assessment Act 1997 exists when your job is eliminated because the employer no longer requires the role — and the employer has complied with any consultation obligations. Payments made under a genuine redundancy receive tax-free treatment up to a statutory limit: $12,524 (base amount) plus $6,263 for each completed year of service (FY2025 indexed amounts). This tax-free component is separate from and in addition to any employment termination payment (ETP) cap. A non-genuine redundancy — where you resign, agree to the termination, or are replaced — does not attract the tax-free formula and is taxed as an ETP at a maximum of 17% (under the cap) or at your marginal rate.

Is redundancy pay taxable in Australia?
Yes — but partially protected. For genuine redundancies, the ATO applies a tax-free cap: $12,524 base plus $6,263 per completed year of service (FY2025 figures, indexed annually). Amounts above this threshold are taxed as employment termination payments at a maximum 17% (below the ETP cap of approximately $230,000) or at your marginal rate above that cap. Notice pay, accrued annual leave, and long service leave are taxed separately under their own rules and are not part of the genuine redundancy tax-free formula.
Can I negotiate more than the NES minimum?
Absolutely. The NES represents the legislative floor, not the expected outcome for all workers. Many enterprise agreements, employment contracts, and company redundancy policies provide significantly more generous terms — sometimes calculated at weekly rate × years of service with no NES cap. Even without a contractual entitlement above the NES, it is entirely reasonable to negotiate with your employer during a redundancy process. An employment lawyer can advise on your leverage and whether the redundancy process has been legally complied with — which affects your negotiating position.
What is the best time to receive redundancy to minimise tax?
Timing a redundancy payment to arrive in a low-income year can reduce the tax on amounts above the tax-free threshold. If you have other income in the current financial year (salary for the months worked), your taxable redundancy components are added on top. If you can choose the redundancy date, receiving the payment at the start of a new financial year when you have no other employment income significantly reduces the effective tax rate on the taxable portion. A tax accountant can model the timing difference before you agree to a departure date.

// INCOME_TAX

Model your total tax position for the year, including the taxable portion of your redundancy payment.

Income Tax Calculator →

// BUDGET

Build a post-redundancy budget. Understand your runway before your next income source starts.

Budget Calculator →
General information only. Redundancy calculations are complex and fact-specific. NES minimums, ETP caps, and tax-free thresholds are updated annually by the ATO. For your specific situation, seek advice from a qualified employment lawyer and/or registered tax agent.

Related Calculators