Advice under development: Decision impact statement on Commissioner of Taxation v Baya Casal [2026] FCAFC 11
Issue: Income tax – approach to characterising a genuine redundancy payment
Category: Income tax
Type of advice: Decision impact statement
Status: Under development
Purpose: This Decision impact statement explains the Full Federal Court’s decision in Commissioner of Taxation v Baya Casal [2026] FCAFC 11 concerning when a payment qualifies as a genuine redundancy payment under section 83 175 of the Income Tax Assessment Act 1997 . The decision confirms that the test is one of fact and degree, requiring an evaluative and holistic assessment of whether a position has genuinely ceased to exist. It also confirms that reductions in hours and remuneration are relevant considerations in this assessment, although they are not determinative.
Comments: The Decision impact statement on Commissioner of Taxation v Baya Casal [2026] FCAFC 11 published on 27 May 2026. Comments period closed on 26 June 2026.
Referenced documents: Decision impact statement