Fair redundancy, retirement scheme payments on horizon

coalition government age pension policy and regulation

17 December 2018
| By Anastasia Santoreneos |
image
image
expand image

Australians nearing retirement will not be taxed on part of the payment they receive should they be made redundant or receive an early retirement scheme payment, under new Coalition Government reforms.

In 2019, the Govt’s reforms would see genuine redundancy and early retirement scheme payments aligned with the Age Pension qualifying age, which, from 1 July 2019, will be 66, rising to 67 by 2023. 

The change would mean that all individuals aged below the Age Pension qualifying age would be able to receive a tax-free component on the payment they receive from their employer in those circumstances.

The new reforms would see a chunk of tax paid be given back to the employee. For example, if a 65 year old with 10 years of service whose job is abolished receives $100,000 in redundancy payments would pay $15,000 tax, but under the new reform, would only pay $5,640.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 2 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 3 hours ago