Financial Planner for Redundancy Payout Beaumaris

A redundancy payout is a one-off sum that can shape the next decade, and the decisions you make in the first few weeks matter more than any others. We work with Beaumaris and bayside Melbourne residents who are facing, or have just received, a redundancy, and we sit down with you before you spend a cent. The week after the news is no time for big calls.

• Your notice period
• Your finish date
• Your mortgage
• Your next move

are all in motion at once. Our job is to slow the picture down, put the numbers in order and tie the money to the life you want, not just a balance in an account. The sections below cover how a payout is made up, how it is taxed, and how it can be structured around your goals. As a boutique firm and retirement planner Melbourne locals trust, based in your community, we stay with you well beyond the payout itself.

What does a redundancy payout actually include?

Most redundancy payouts combine three parts, and each is taxed differently: a genuine redundancy payment, unused annual and long service leave, and an employment termination payment (ETP). Before any decision is made, we work out which dollars belong to which part, because that is the basis of any redundancy pay calculation.

Your statutory redundancy entitlements, which come from the National Employment Standards, your award or enterprise agreement and your contract, set the minimum you should receive. Some employers pay more. We help you check the figure on your termination letter against what you are owed, then look at tax treatment, super contributions, debt and your mortgage, and the income gap until your next role.

How much of my redundancy pay is tax-free?

The tax-free redundancy threshold for the 2024-25 year is $12,524 plus $6,264 for each full year of service. Anything above that is taxed as ordinary income.

Here is a simple example. After 10 full years, the tax-free amount is $12,524 + (10 × $6,264) = $75,164. A genuine redundancy payment of $90,000 would leave about $14,836 taxable.

Unused annual and long service leave is taxed on its own, at a maximum rate of 32% including the Medicare levy. An ETP receives a tax concession up to a $245,000 cap, depending on your age and how it is structured.

Good advice starts with what you want your life to look like, then works backwards to the numbers.

Tyson Roberts, Managing Director

That is why we begin with your goals, whether that is time with family, a career change, further study or earlier retirement planning parkdale, and measure the plan against them rather than returns alone.

How should I structure the payout to avoid tax surprises?

Good redundancy settlement planning happens before any money lands, because the order and timing of each component affects how much tax you pay. The main levers are income stacking, deferral, super contributions and deductions. If you land a new job within weeks, that salary can sit on top of your redundancy payout and push you into a higher marginal tax bracket. Where possible, we help you negotiate with your employer to defer some components into the next financial year. We also look at pension contributions from the payout, meaning super. Both concessional (pre-tax) and non-concessional (after-tax) contributions can improve your tax position and lift retirement savings, subject to your caps and circumstances. Financial advice, self-education and job-seeking costs may also be deductible. If the payout affects your home loan, our financial planning and mortgage broking work together, so one adviser sees the whole picture.

Where can I invest part of a redundancy lump sum?

For a redundancy lump sum investment, two long-term options sit alongside each other for most people: super and investment bonds. The bond provider taxes investment bonds at a flat 30% and, if held for 10 years, can be withdrawn tax-paid. Super suits money you are happy to lock away until retirement.

The right mix depends on your age, goals and cash flow, and it changes over time. A new job, a growing family or a shift in retirement timing can all call for a different approach, so we treat the payout as the start of a long-term partnership. The same team stays across your advice and client services as your plan evolves, whether that means financial planning elwood or broader support.

Build a transitional budget and emergency fund cash buffer

Start by writing a budget for the gap between jobs, covering essentials first: mortgage or rent, utilities, insurance and food. Then build an emergency fund cash buffer so a delayed start date doesn't force you to sell investments at the wrong time. Many people hold several months of essential expenses in cash, though the right figure depends on your household. We also encourage clients to avoid lifestyle inflation. A large deposit in your account can make spending feel easier than it should. Once income resumes, keep part of the payout in place rather than absorbing it into everyday spending, and plan around your new cash flow.

Should I review my insurance cover after redundancy?

Yes, review your cover as soon as you know your finish date. Income protection insurance can pay up to 70% of your income if illness or injury stops you working, but redundancy is not a claimable event, so it will not replace a lost salary. Some cover, such as death in service cover, may also end when the job does. Mortgage payment protection tied to employment can also fall away or exclude you once you are no longer working, so check the policy wording. We look at what you hold, what lapses and what gaps matter for your household. Advice is a paid professional service, and we explain our fees upfront. We offer financial planning and mortgage broking, and we do not guarantee any outcome.

Talk to us early in the redundancy process

The ideal time to speak with us is as soon as you know redundancy is likely, before you sign anything. An early conversation lets us run tailored tax scenarios and structure the payout around your long-term goals. If you have them, bring your redundancy letter, recent payslips and super statements. If not, come anyway. There is time to make considered decisions without rushing. Book a conversation with our Beaumaris-area team to get started.