Redundancy Payment Calculator, Preservation Age and Tax Rates

(last updated 27/03/2014)

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Preservaton Age and ETP's

Tax on ETP amounts can vary based on “Preservation Age”. See this post for details on NEW rules on ETP Caps and tax rates.

See this post for details on Tax Free components of a Redundancy Payment.

Preservation in the context of Eligible Termination Payments (ETP’s) determines the tax applicable to the payment.

Preservation age is determined using your employee’s date of birth. The preservation table below shows the preservation age based on date of birth:

Date of birth Preservation age
before 1/7/1960
55
1/7/1960 – 30/6/1961
56
1/7/1961 – 30/6/1962
57
1/7/1962 – 30/6/1963
58
1/7/1963 – 30/6/1964
59
After 30/6/1964
60

Tax rates applicable to ETP’s are as follows:
  • Under preservation age – Up to the ETP cap amount – 31.5% (including Medicare Levy)
  • Preservation age or over – Up to the ETP cap amount 16.5% (including Medicare Levy)
  • All employees Over the ETP cap amount 46.5% (including Medicare Levy)

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

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