Tax Return

[JMcKie]

Hi All,

I was just wondering if anyone could clear up something for me. I was made redundant during the last financial year (2023-2024) ending in June. I was given an amount that is categorised under Lump Sum D. However, my tax return estimate is showing that I potentially owe money. I am certain this is due to my redundancy payment as that is the only difference to the previous financial year (2022-2023). After doing some reading up on the relevant categories, I am of the knowledge that I was paid tax free. Is this a common scenario where it can be repayable to a certain extent at tax time?

Thanks in advance.

[Marisawright]

17 hours ago, JMcKie said:

Hi All,

I was just wondering if anyone could clear up something for me. I was made redundant during the last financial year (2023-2024) ending in June. I was given an amount that is categorised under Lump Sum D. However, my tax return estimate is showing that I potentially owe money. I am certain this is due to my redundancy payment as that is the only difference to the previous financial year (2022-2023). After doing some reading up on the relevant categories, I am of the knowledge that I was paid tax free. Is this a common scenario where it can be repayable to a certain extent at tax time?

Thanks in advance.

Are you in Australia?  If so, it's not going to cost much to go to a tax agent like H & R Block to get confirmation.

[Alan Collett]

Maybe check with your former employer's payroll department to make sure the sum has been reported correctly to the ATO?

Best regards.

[Alan Collett]

Also: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/in-detail/taxation-of-termination-payments/redundancy-and-early-retirement#ato-Workingoutandreportingthetaxfreeamount

Note that it is possible not all of your redundancy payment was tax free ...

Best regards.