In the 2018-19 MYEFO, the Government announced that it would extend the concessional tax treatment of genuine redundancy and early retirement scheme payments, from 1 July 2019, to those under Age Pension qualifying age.
The Government has released exposure draft legislation and explanatory material for amendments to give effect to this MYEFO announcement.
From 1 July 2019, the proposed legislation will align the age below which a person can receive a genuine redundancy or early retirement scheme payment. This will address the circumstance where some older Australians who, due to their age, cannot access either the Age Pension or the tax-free component of genuine redundancy or early retirement scheme payments.
The proposed legislation does not make any other changes to the taxation of genuine redundancy payment or other types of employment termination payments.
Public consultation on the exposure draft legislation and explanatory material will close on Thursday, 1 August 2019.
You can submit responses to this consultation up until 01 August 2019.
Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
How To Respond
Address written submissions to:
Individuals Tax Unit
Individuals and Indirect Tax Division
Parkes ACT 2600
Phone: Belinda Black +61 2 6263 4364