Guide
Redundancy Pay After Tax
A practical guide to redundancy pay after tax in Australia, including notice pay, unused leave and tax-free redundancy questions.
Written for Australian workers and job seekers · Updated 2026-07-11 · General information only
Plain-English answer
Helpful before using the calculator
Updated 2026-07-11
What this page helps you answer
What this pay, tax or salary topic means in simple terms.
What number or setting to check next in the calculator.
Which assumption could change the answer most.
When to stop using a rough estimate and ask payroll, the ATO or a qualified adviser.
Do not treat every payment the same
A redundancy package can include ordinary wages, genuine redundancy amounts, unused leave, notice pay and other employment termination components. Those parts should be separated before you estimate take-home value.
Ask payroll for the exact breakdown
Before trusting any headline payout figure, ask which amount is genuine redundancy, which amount is notice pay, which amount is leave, and what withholding approach will be used for each part.
Use a budgeting estimate, not blind certainty
This site can help you ask better questions and plan more safely, but specialised termination payments can still need payroll confirmation or tax advice before you rely on the final number.
Before you make a decision
Use the guide to understand the topic, then check the number with your own inputs. If the result affects a resignation, job offer, visa decision, redundancy, tax return or family budget, confirm the details with the right official source or adviser.
Check the financial year.
Confirm whether super is included or added on top.
Check HELP debt and tax residency settings.
Compare weekly, fortnightly and monthly cashflow.
Common questions
Is redundancy pay tax free in Australia?
Some genuine redundancy components may receive concessional treatment, but not every part of a payout is tax free.
Why is notice pay different from redundancy pay?
Notice pay and genuine redundancy amounts can be treated differently, which is why they should be separated before estimating the after-tax result.