Private ruling: Redundancy payment
Date of advice: 29 March 2018
Published: June 2018
Ruling period: Income year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Is any part of the Redundancy Payment a genuine redundancy payment for the purposes of section 83-175 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No

Relevant facts and circumstances: 1. Your Client commenced employment with the Employer in 2013. 2. An enterprise agreement contained terms and conditions of your Client’s employment. 3. In the 2017 financial year your Client’s employment with the Employer was terminated because their role was no longer required by the Employer. 4. Your client received an estimate of his termination payment which included a severance amount. 5. The severance amount in the estimate aligns with the Redundancy Payment terms of the enterprise agreement. 6. The enterprise agreement states that at the time of termination of employment the Redundancy Payment will be paid to the employee.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 83-175