Tax: What proportion of my payout will I receive?
Figuring out how much of your termination payment will end up in your bank account is the first step to creating the important budget that will help you to assess and plan for your altered financial situation.
To find out more information about the tax implications of your payout visit the Australian Tax Office website.
To make preliminary calculations of how much tax will be taken out of your payout you can also view the tax table for employment termination payments.
The very first thing you need to do to be able to assess how long your pay-out will last is to create a budget listing your essential financial obligations (loans, bills, insurance, school-fees etc.) and the money you need to live day to day (groceries, petrol etc.).
There are many free budget planning tools available on the internet that you can use, some are listed below:
Pocketbook - Personal Finance App for your smart phone
Don’t forget to ensure you make other arrangement for any direct debit arrangements you have currently tied to the account your salary/ wages went into.
If you are anticipating that you may be in immediate financial difficulty, following your redundancy, one of your first actions should also be seeking financial counselling. This may also be useful if you would like to make cuts to your budget so that your payout lasts longer but aren’t sure how to go about it or would just like some guidance.
There are many free services available so either contact your local council for information or see some suggestions of services below:
Once you have made sure that you are able to survive and cover your non-negotiable financial obligations in the short term you can take a lower-stress approach to thinking about your next moves.
Whether you have identified that you must begin to look for work immediately after you leave your current workplace, have financial room to consider another career or start a small business, or if you are considering transitioning into retirement you can find further assistance on the Moving on section of this website.