Statutory Redundancy Pay Calculator
Calculate your Fair Work National Employment Standards (NES) severance entitlement, ATO genuine redundancy tax-free thresholds, notice in lieu, leave payouts, and take-home severance net cash.
Employment & Redundancy Details 2024/25 Statutory Rules
Excludes employer superannuation (ordinary time earnings base).
Small businesses are exempt under Section 121 NES.
Job abolished; employer no longer requires the role.
Notice in Lieu & Accrued Leave Payouts
Used to calculate how many months of runway your severance net payout provides.
Total cash transferred to your account after ATO tax withholding.
Severance & Tax Decomposition
ℹ️ 2024/2025 ATO Statutory Thresholds:
• Base Tax-Free Limit: $12,524
• Per Completed Year: +$6,264 per year of service
• ETP Concessional Tax Rate: 32% (under 60) or 17% (age 60+) up to $245,000 cap.
Australian Fair Work National Employment Standards (NES) Redundancy Guide
Under Section 119 of the Fair Work Act 2009, eligible Australian full-time and part-time employees are entitled to statutory redundancy severance pay when their employment is terminated because the employer no longer requires the job to be done by anyone, or due to employer insolvency.
1. Statutory NES Redundancy Scale
| Period of Continuous Service | Redundancy Pay (Weeks) |
|---|---|
| At least 1 year but less than 2 years | 4 weeks |
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| At least 5 years but less than 6 years | 10 weeks |
| At least 6 years but less than 7 years | 11 weeks |
| At least 7 years but less than 8 years | 13 weeks |
| At least 8 years but less than 9 years | 14 weeks |
| At least 9 years but less than 10 years | 16 weeks |
| At least 10 years or more | 12 weeks* |
*Note: Under the NES, employees with 10 or more years of service receive 12 weeks of severance (reduced from 16) due to historical state awards transitioning to Long Service Leave (LSL). However, enterprise agreements (EAs) or employment contracts may provide more generous entitlements.
2. What Qualifies as a Genuine Redundancy with the ATO?
For payments to qualify for the tax-free concession, the Australian Taxation Office (ATO) requires four conditions: 1) The employee's position is genuinely abolished; 2) The dismissal occurs before the employee turns 65 or age pension age; 3) The termination is at arm's length (no arrangement to rehire); 4) There is no transfer of business within an associated entity.
Next Steps & Related Australian Calculators
Strengthen your financial plan with these interconnected statutory computational models.
Emergency Fund Planner
Calculate how many months your redundancy payout will sustain you.
Paycheck & Income Tax (PAYG)
Plan your transitional income tax and ETP withholding.
Centrelink Age Pension
Check redundancy impacts on Centrelink waiting periods and deeming.
Australian Cost of Living
Adjust household spending during a career transition.
Frequently Asked Questions
Are small businesses exempt from paying redundancy in Australia? ▼
Yes. Under Section 121 of the Fair Work Act, employers who employ fewer than 15 employees (including regular casuals) at the time notice is given are exempt from paying statutory NES redundancy pay. However, employers must still pay out statutory notice periods and accrued annual leave.
How is unused annual leave taxed when made redundant? ▼
Under a genuine redundancy, accrued annual leave and leave loading are taxed at a flat concessional withholding rate of 32% (or 30% plus 2% Medicare levy), rather than being pushed into higher marginal tax brackets (such as 37% or 45%).
Is superannuation paid on redundancy payouts? ▼
No. Employers are not required to pay the Superannuation Guarantee (SG) on genuine redundancy severance payments or unused accrued annual/long service leave payouts. However, superannuation is payable on normal salary paid during a worked notice period.