About Redundancy Tax Calculator

Redundancy Tax Calculator is a free, independent Australian tool that estimates what a redundancy package is actually worth after tax. You enter your pay, years of service, age and leave balances; it applies the published rules — the NES redundancy scale, the genuine redundancy tax-free limit, ETP withholding and unused-leave withholding — and shows the result as a payslip you can read line by line.

Why this exists

Redundancy is usually the largest single payment most people ever receive, and it is taxed unlike anything else: part tax-free, part at 32% (or 17%, or 47%), with rules that change at age 60 and again at 67. Most people facing redundancy have never seen an ETP before and have no way to check the number their employer quotes. This site exists so anyone can check that number in two minutes, for free, without handing over an email address or their personal details.

Where the figures come from

Every rate and threshold in the calculator is taken from a published primary source: ATO Schedule 11 (ETP withholding), ATO Schedule 7 (unused leave), the Fair Work Act s 119 redundancy pay scale, and the Fair Work Commission's high income threshold. Each source is linked in the source register with the date we last verified it. The rules are re-verified every 1 July (new financial year) and each February (indexation announcements). The four worked examples the ATO publishes for its schedules are built into our automated test suite — the calculator must reproduce the ATO's own numbers to the dollar before any change ships.

What this site is not

It is a general-information tool, not personal advice. The output is estimated withholding, not your final assessed tax, and it can't account for your full circumstances. Before acting on a redundancy offer, talk to a registered tax agent, an employment lawyer or a licensed financial adviser — the disclaimer spells out the boundaries.

Who runs it

The site is built and maintained by an independent developer in Australia. It has no affiliation with the ATO, Fair Work, Services Australia or any employer, union or financial-services firm. It is funded by advertising (clearly marked, served by Google AdSense) so the calculator itself can stay free with no sign-up. Corrections and questions are genuinely welcome — see the contact page; sharp-eyed readers pointing out edge cases make the tool better for everyone.