“According to the ATO, a bona fide redundancy payment is defined as compensation received by an employee under the age of 66 upon being dismissed from their job due to a genuine redundancy. This requires that:
- The payment in question is directly linked to the employee’s termination.
- The termination involves the employee’s dismissal from their job.
- The dismissal is due to the redundancy of the position.
- The redundancy payment is made solely as a result of the redundancy.”
Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before taking action.
