Your final payslip, decoded.

Redundancy pay isn't taxed like salary — part is tax-free, part is taxed at 32% (or 17%, or 47%), and the rules change at 60 and at 67. Fill in Part A and watch your estimated final payslip build itself: NES minimum, tax-free limit, ETP tax, leave tax, net. Nothing you type leaves your browser. First time? There's a step-by-step how-to.

Part A — Separation details

FORM R-119
REV. 2026-27
A1 · Pay & employment
Ordinary hours at base rate — no overtime, penalties or allowances. This sets your redundancy pay.
What a normal week actually pays. Used for notice paid out (PILON). Leave blank to reuse base pay.
Small businesses generally owe no NES redundancy pay.
A2 · Service & age
Decimals are fine — only completed years count for the tax-free limit.
60 or over: ETP rate falls from 32% to 17%. 67+: tax-free limit no longer applies.
A3 · Final pay components
Paid out = added to the package at your full weekly rate.
Anything the employer offers beyond NES — ex gratia, 'golden handshake'.
Including leave loading.
Accrued after 1993 (earlier accruals: not modelled in v1).
Only matters for non-genuine terminations (whole-of-income cap).
We check it against your NES minimum.
A4 · Tax basis
Unsure? Run the Part B check below.
Older payments use that year's caps and limits — most calculators get this wrong.
Estimate only

Final pay advice

PAY PERIOD: FINAL · FY 2026-27 · ALL FIGURES AUD · ESTIMATED WITHHOLDING

Entitlements
Redundancy pay — FW Act s 11914 weeks @ $1,800.00 base25,200.00
Payment in lieu of notice4 weeks @ $1,800.00 full rate7,200.00
Severance above NES / ex gratia10,000.00
Unused annual leave (incl. loading)6,500.00
GROSS PACKAGE48,900.00
Tax treatment
Lump Sum D — tax-free ◼ TAX FREELimit: $68,006.00 ($13,598.00 + $6,801.00 × 8 completed years)42,400.00
ETP taxable componentWhole package sits inside the tax-free limit0.00
Withholding on unused leave @ 32% flatSchedule 7 — genuine redundancy rate, any accrual date−2,080.00
TOTAL TAX WITHHELD (EST.)−2,080.00
Net payment
(estimate)$46,820.00

EFFECTIVE RATE: 4.3%

If you had resigned instead, roughly $11,488.00 more of this package would have gone to tax. Genuine redundancy treatment is doing real work here.

✓ Figures verified 14 Jul 2026ATO SCH 7 & 11FW ACT S 119

Part B — Was it genuine? (60-second check)

FW ACT S 389
TR 2009/2

A redundancy is only genuine if the job is no longer required by anyone, consultation obligations were met, and redeployment wasn't reasonable. Four questions. This produces indicators worth professional review — never a legal conclusion.

Q1Has someone been hired into your role — or is it being advertised?If the job still exists, it may not be redundant at all.
Q2If an award or enterprise agreement covers you — did consultation happen before the decision?Answer NO if there was no real consultation. Answer YES if consulted, or if no award applies.
Q3Were there other suitable roles in the company (or related entities) you weren't offered?
Q4Were you selected using performance metrics, after making a complaint, or while on leave?These can point to a disguised dismissal or adverse action.
Q5Days since your dismissal took effectUnfair dismissal applications close at 21 days — strictly.

Part C — Redundancy runway

PAY RULES FY 2026-27
SERVICES AUSTRALIA IMP

The number that actually matters: how long the net package replaces your normal take-home pay. Computed with the full 2026-27 resident tax scales — LITO, the Medicare levy phase-in, HELP repayments and the $1,000 instant deduction.

C1 · Your normal pay
Excluding super. Leave blank to use weekly pay × 52 = $93,600.00.
Repayment income includes the taxable package — a payout can trigger a large compulsory repayment at assessment.
Rent or mortgage, food, utilities, insurance — the survival budget.
Full-replacement runway
(estimate)7.6 months

Net package $46,820.00 ÷ normal take-home $6,120.67/month

  • IMP — no JobSeeker (~22 wks)
  • Full-salary spending (7.6 mo)
  • Centrelink will likely apply an Income Maintenance Period of roughly 22 weeks before JobSeeker starts. Lodge your claim immediately — the start date backdates to lodgement.
  • Runway assumes tax withheld equals final tax; a large payout can also trigger HELP repayments and Medicare Levy Surcharge at assessment.
  • Centrelink also applies a one-week Ordinary Waiting Period, and a Liquid Assets Waiting Period if savings exceed roughly $5,500 single / $11,000 couple. Figures indexed — verify on servicesaustralia.gov.au.
How long will my redundancy last? →Centrelink IMP explained →

How the estimate works

The calculator chains four verified rule sets: FW Act s 119 redundancy weeks × your base weekly pay → the genuine redundancy tax-free limit ($13,598 + $6,801 per completed year of service, ITAA 1997 s 83-175) → ETP withholding under ATO Schedule 11 (32% under age 60, 17% at 60+, 47% above the $270,000 ETP cap or the whole-of-income cap) → unused leave withholding under ATO Schedule 7 (flat 32% on genuine redundancy). Non-genuine terminations lose the tax-free limit and are tested against the $180,000 whole-of-income cap instead.

Known simplifications

  1. All tax figures are estimated withholding, not your final assessed tax. The 32% leave rate is capped by an offset at assessment; refunds are possible.
  2. Notice paid out (PILON) is included in the genuine redundancy pool — the common case, not universal.
  3. Long service leave accrued before 1993 gets concessional treatment that isn't modelled here.
  4. The Medicare levy low-income phase-in is simplified.
  5. Awards and enterprise agreements can pay more than the NES — check yours with theFair Work pay calculator.
  6. Multiple ETPs for the same termination reduce the caps; only a single package is modelled.

For the full explanation — tax-free limit, ETP rates, leave tax, the over-60 rules and what changed on 1 July 2026 — read the redundancy tax guide. For what the number means for your next few months, see how long will my redundancy last?and redundancy and the Centrelink IMP.

Source register

General information only

This tool provides general information based on published ATO withholding schedules and Fair Work materials. It is not tax, legal or financial advice, and it doesn't consider your personal circumstances. Estimated withholding can differ from your final assessed tax. For advice you can rely on, speak to a registered tax agent, an employment lawyer, or a licensed financial adviser. Your inputs are processed entirely in your browser and are never sent to a server.