About the Australia Redundancy Pay Calculator
This Australian redundancy calculator works out the minimum redundancy pay under the National Employment Standards (NES), your notice period, and how the payment is taxed. NES redundancy pay ranges from 4 weeks’ base pay after one year of continuous service to 16 weeks after nine years, falling to 12 weeks after ten years (when long service leave usually kicks in). Most employers with fewer than 15 employees do not have to pay NES redundancy pay.
For tax, a genuine redundancy payment is tax-free up to a limit of $13,598 plus $6,801 for each completed year of service in 2026-27 ($13,100 plus $6,552 in 2025-26). Anything above the limit is an employment termination payment (ETP), taxed at a maximum of 17% if you are 60 or over and 32% if you are younger (including the Medicare levy), up to the ETP cap of $270,000.
Enter your service, weekly base pay and age, and add any extra amount your employer is offering on top of the NES, plus whether notice is being paid in lieu. The calculator shows the gross package, the tax-free part, estimated tax and what you take home. Unused annual and long service leave are paid separately and are not included.
With the default inputs, the estimated take-home from package is $28,800.00. Change any value above to recalculate instantly.
How to use the australia redundancy pay calculator
- 1Choose the income year in which you will be paid.
- 2Enter completed years of service, weekly base pay and your age.
- 3Tick small business if your employer has fewer than 15 employees.
- 4Say whether notice will be paid out and add any extra redundancy offered.
- 5Review NES pay, the tax-free amount, ETP tax and your take-home.
Formula and method
NES redundancy pay depends on completed years of continuous service: 4 weeks (1 year), 6 (2), 7 (3), 8 (4), 10 (5), 11 (6), 13 (7), 14 (8), 16 (9) and 12 weeks for 10 years or more. It is paid at your base rate for ordinary hours. Notice is 1 week for up to 1 year of service, 2 weeks for more than 1 and up to 3 years, 3 weeks for more than 3 and up to 5 years and 4 weeks for more than 5 years, plus one week if you are over 45 with at least 2 years of service.
A genuine redundancy payment — including payment in lieu of notice and any extra amount, but not unused leave — is tax-free up to the ATO limit for the income year. The excess is an employment termination payment: up to the ETP cap it is taxed at no more than 15% plus the 2% Medicare levy if you have reached preservation age (60), or 30% plus Medicare if you have not; amounts above the cap are taxed at 47%. This calculator assumes the payment is a genuine redundancy; at Age Pension age (67) or older there is no tax-free part and the whole package is treated as an ETP.
- Base
- Tax-free base limit: $13,598 in 2026-27
- Per year
- $6,801 per completed year of service in 2026-27
- ETP cap
- $270,000 in 2026-27
Worked examples
6 years’ service, age 48, $1,800 a week
Six years earns 11 weeks of NES pay ($19,800). Notice is 4 weeks plus 1 for being over 45 = 5 weeks ($9,000) paid in lieu. The $28,800 total is well under the tax-free limit of $13,598 + 6 × $6,801 = $54,404, so none of it is taxed.
4 years, age 35, with a $40,000 enhanced offer
NES pay is 8 weeks × $2,000 = $16,000 and notice is 3 weeks ($6,000), so with the $40,000 extra the package is $62,000. The tax-free limit is $13,598 + 4 × $6,801 = $40,802, leaving a $21,198 ETP taxed at 32% ($6,783.36).
Age 61, 12 years, notice worked
After 10 years NES redundancy pay is 12 weeks ($30,000). With a $100,000 extra the package is $130,000. The tax-free limit is $13,598 + 12 × $6,801 = $95,210; the $34,790 excess is taxed at 17% because the employee is over 60.
Frequently asked questions
How much redundancy pay am I entitled to in Australia?+
Under the NES you get 4 weeks’ pay after 1 year, rising to 16 weeks after 9 years, then 12 weeks after 10 years or more. Awards, enterprise agreements and contracts can give more.
How much of my redundancy is tax-free?+
For 2026-27, a genuine redundancy payment is tax-free up to $13,598 plus $6,801 for each completed year of service. For 2025-26 the figures were $13,100 and $6,552.
How is the excess redundancy payment taxed?+
The part above the tax-free limit is an employment termination payment. It is taxed at a maximum of 17% if you are 60 or over, or 32% if you are under 60 (both including Medicare), up to the $270,000 ETP cap in 2026-27.
Do small businesses have to pay redundancy?+
Generally no. Employers with fewer than 15 employees (including casuals employed regularly) are exempt from NES redundancy pay, although some awards require it. Notice still applies.
Is unused annual leave part of my redundancy pay?+
No. Unused annual leave and long service leave are paid separately on termination and are taxed under different rules, so they do not use up the tax-free redundancy limit.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.