When you receive, or are about to receive a lump sum redundancy payment from your employer it is important to prepare and research your options before making any decisions about what to do with the money.
You may be tempted to put the money towards a large debt, like your mortgage, but doing this immediately may not always be the best move as it may disadvantage you in having enough money to live on until you are eligible for Centrelink payments, or you gain employment.
When you are made redundant there are two major financial areas you must consider. The first is creating a budget to suit your new circumstances and calculate how long you can survive on your payout. The other consideration is financial counselling to make the most of your circumstances and avoid making any missteps that might mean you are without access to your payment and yet ineligible to start receiving Centrelink payments such as Newstart Allowance.
The pages below outline some of the basic information needed to begin considering any of the following options.