Australia Redundancy & Severance Pay Calculator (Tax-Free ETP Simulator)
Determine your exact statutory termination payout under the Fair Work Act. Calculates NES redundancy severance weeks, notice period pay (including the over-45 bonus week), accrued annual leave with 17.5% loading, pro-rata long service leave, and the ATO tax-free threshold ($12,524 base + $6,264/year).
Severance Component Breakdown
Fair Work NES Redundancy Scale & ATO Taxation Rules
Fair Work NES Redundancy Scale
Under the National Employment Standards, continuous service awards 4 weeks (1-2 yrs) up to 16 weeks (9-10 yrs). At 10+ years, the scale defaults to 12 weeks because long service leave entitlements vest.
ATO Genuine Redundancy Tax-Free Cap
For the 2024-2025 financial year, the ATO allows a tax-free base of $12,524 plus $6,264 per completed year of service. If your redundancy payout is below this threshold, zero income tax is deducted.
Small Business Exemption (<15 Staff)
Under federal law, businesses employing fewer than 15 staff are generally exempt from paying statutory severance, though notice periods and accrued leave must still be paid in full.
📊 Australian Statutory Payroll & Tax Breakdown Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (AUD) |
|---|---|
| Primary Net / Statutory Payable Amount | $0.00 |
Frequently Asked Questions (FAQ)
Q. What is an Employment Termination Payment (ETP)?
Any redundancy payment exceeding the ATO tax-free threshold is classed ETP. The taxable component is taxed at concessional rates (capped at 17% for employees at preservation age, or 32% if younger) up to the ETP cap ($245,000 for 2024-25).
Q. Do I get an extra week of notice pay if I am over 45?
Yes! If you are at least 45 years of age and have completed at least 2 years of continuous service with the employer, Fair Work entitles you to 1 additional week of notice pay.
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Australian Taxation Office (ATO) & Fair Work Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.