Redundancy Pay Calculator Australia

Genuine redundancy payments receive concessional tax treatment. In 2025–26, the tax-free amount is $12,524 base plus $6,264 for each completed year of service. Amounts above this are taxed at a maximum rate of 32% (not your full marginal rate). Notice pay and annual leave payouts are taxed as ordinary income at your marginal rate.

A genuine redundancy occurs when your job is no longer required to be done by anyone, your employer has complied with any applicable consultation obligations, and you have not been offered and unreasonably refused another suitable role. If your employer fills your position shortly after your redundancy, it may not be genuine and you may have an unfair dismissal claim.

No. Small business employers with fewer than 15 employees are exempt from the NES redundancy pay provisions. However, they must still pay out accrued annual leave and provide the required notice period (or pay in lieu). Employees may still have entitlements under their award or enterprise agreement even if the NES exemption applies.

Yes — the NES sets minimums, not maximums. You can negotiate additional payment especially if you have a strong performance record, are close to a service threshold, or your role was critical. Many larger employers offer enhanced redundancy packages above the statutory minimum. Getting advice from a workplace lawyer before accepting a payout is often worthwhile for larger amounts.

No. Redundancy is when a position is eliminated — it's about the role, not the person's performance. Being dismissed or fired is termination due to conduct or performance. The entitlements are different: genuine redundancy attracts the redundancy pay scale and tax concessions; dismissal does not. If you believe you were made redundant unfairly (e.g., the role still exists), you may be able to lodge an unfair dismissal claim with the Fair Work Commission.