Redunancy pay and Super contribution

Discussion in 'Superannuation' started by Goldhamster, Feb 9, 2014.

  1. Goldhamster

    Goldhamster New Member

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    We have received a note on Friday advising us that our job might be made redundant.We were all advised how it is to happen etc. and were given our payout figure.
    Although we all could see it coming there was still disbelief in the room and in the moment none of us asked on what part of the redundancy package super contributions have to be made.I will receive redundancy ,long service and outstanding annual leave components.
    My guess is that super will have to be paid for my Annual and Long Service Leave parts.Do you think that is correct ?

    Thanks people
     
  2. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    yes that's true... but you'll get all sorts of tax breaks etc with redundancy payouts.

    Otherwise the tax dept. would see your payout as a payrise and tax the cr@p out of you.

    P.S.
    Embrace your redundancy. It's even better than a "get out of jail free" card, you get a golden parachute :cool:

    take a little holiday (not too long) but start looking for work NOW!!!

    The longer you leave it the harder it is.
     
  3. redwood

    redwood New Member

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    Agree and echo the thoughts of Clawhammer.

    With any change in my life, its been for the better. Some decisions were mine and some decisions were not.

    Be positive and stay positive. Depending on your personality, do the 'calc' and plan your next 12 months, i'm sure you will look back and say that is the best thing that ever happened to you.

    Keep us posted.

    Cheers, Ivan
     
  4. Elemental

    Elemental Active Member Silver Stacker

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    It will depend on the terms of your redundancy but a genuine redundancy does not include salary and wages. Super Guarantee is paid on ordinary time earnings which a redundancy is not. See here:

    http://www.ato.gov.au/Individuals/Working/Leaving-a-job/Redundancy-payments/

    A little bit more information on this - here is a checklist of Salary and Wages and Ordinary Time Earning (OTE) provided by the ATO. Your employer will probably only pay the minimum as required by law, this means they will probably pay super on the OTE only. As I said above a genuine redundancy does not include payments of salary and wages so I suspect no Super on this.

    http://www.ato.gov.au/Business/Empl...r-salary-or-wages-and-ordinary-time-earnings/

    Good luck with the new job search - just a quick question if you don't mind? What industry are you in?
     
  5. Goldhamster

    Goldhamster New Member

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    Tourism and Hospitality,although my workplace is owned by a Qld. Mining Magnate/Politician who really should not be in any kind of People Business,any !
     
  6. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    From all reports it sounded like a horrible place to work... reckon you got the better end of the deal. There were more dangerous veracious blood thirsty dinosaurs at that place than just on show out the front.

    Change can be difficult... for some reason, our subconscious tricks us into thinking something new is bad (Institutionalisation & Stockholm Syndrome). Yet our real world experiences shows us that moving on is usually always to greener pastures.

    Things are looking up for you GH.
     
  7. Goldhamster

    Goldhamster New Member

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    Jackpot for you Clawhammer.

    i think I asked you before what you do up in Airlie,i recall you weren't there in the decade I lived up there.
    Still have a few friends on the boats and want to go back up one day,for a visit.

    Thanks all for the advise,this place is so bad anything else has got to be better.No trend reversals here any time soon.
     

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