Approved early retirement scheme payments and bona fide redundancy payments are taxed at special concessional rates. An approved early retirement scheme is a scheme that an employer puts into place to encourage certain groups of employees to retire early or resign. As the name suggests, to get the special tax rates, the Tax Office must approve the scheme.

A bona fide redundancy payment is a payment made to an employee who is dismissed because the job they are doing is made redundant.

Redundancy payments do not need to be paid by ALL employers.

Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances.