Treasury Laws Amendment (2019 Measures No. 2) Bill 2019
The Bill amends the tax law to extend the concessional taxation treatment to amounts paid for genuine redundancy and early retirement to individuals who are 65 or more years of age provided the dismissal or retirement occurs before they reach pension age.
Previously you had to be under 65 years on the day of termination (dismissal/retirement). Now you just have to be under the “pension qualifying age” as per table below:
|Date of Birth||Age pension qualifying age|
|1 July 1952 to 31 December 1953
||65 years and 6 months
|1 January 1954 to 30 June 1955
|1 July 1955 to 31 December 1956
||66 years and 6 months
|On or after 1 January 1957
Example: Anyone who was terminated 5th November 2019, that was born on/after 1 January 1954, would be eligible.
Anyone in the first age bracket is already ineligible because even if you were to amend a redundancy payment from start of this tax year they would already be over the age of 65 years and 6 months.