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Australian Financial Calculators

Fair Work Redundancy Pay Calculator Australia 2026-27

Estimate National Employment Standards (NES) redundancy weeks, then see ATO tax-free limits and ETP tax on a genuine redundancy payment.

Redundancy Details

Base rate for ordinary hours (award/agreement rules can differ). Used to estimate NES weeks × pay.

NES weeks follow Fair Work Australia tables. Tax assumes a genuine redundancy: the 2026-27 tax-free limit is $13,598 + $6,801 per completed year of service.

Results

Enter years of service (and weekly pay and/or payment) to calculate

Fair Work redundancy pay vs ATO redundancy tax

Searches for a Fair Work redundancy pay calculator are about how many weeks you are owed under the National Employment Standards. Searches for redundancy tax are about how much of that payment the ATO treats as tax-free versus an Employment Termination Payment (ETP). This page covers both — because a global “compensation calculator” will not apply Australian NES tables or genuine-redundancy tax-free limits.

NES weeks of pay (continuous service)

  • 1–<2 years: 4 weeks · 2–<3: 6 · 3–<4: 7 · 4–<5: 8
  • 5–<6: 10 · 6–<7: 11 · 7–<8: 13 · 8–<9: 14 · 9–<10: 16
  • 10+ years: 12 weeks (NES maximum)

Some small-business employers are exempt from NES redundancy pay. Awards, enterprise agreements, or contracts can be more generous. Always check Fair Work and your agreement — this tool is an estimate only.

Genuine redundancy tax-free component

For a genuine redundancy, part of the lump sum can be tax-free: a base amount plus an amount per completed year of service (figures above). Anything above that is an ETP, withheld at 32% under preservation age or 17% at preservation age (60) and over, up to the ETP cap of $270,000 for 2026-27; amounts above the cap are withheld at 47%. These rates include the Medicare levy. Compare ongoing salary scenarios with our pay calculator.

Fair Work NES weeks + ATO genuine redundancy tax

NES redundancy pay is a set number of weeks of pay by years of continuous service. Separately, genuine redundancy payments have an ATO tax-free base plus a per-year amount; the rest is taxed as an ETP.

  • NES: 1–<2 yrs = 4 weeks … 9–<10 = 16 weeks; 10+ = 12 weeks
  • Tax-free (2026-27) = $13,598 + (completed years × $6,801)
  • Taxable ETP = payment − tax-free (if positive)
  • ETP tax up to the $270,000 cap: 32% under preservation age or 17% at or above it; 47% above the cap (rates include the Medicare levy)

Worked example: 8 years, $1,500/week

  1. NES weeks for 8 years’ service = 14 weeks → 14 × $1,500 = $21,000 entitlement estimate.
  2. Tax-free limit for 8 completed years in 2026-27 = $68,006.
  3. Compare your actual package to the NES estimate, then model ETP tax on any taxable portion.
  4. Confirm small-business exemptions and award terms on Fair Work.

Frequently Asked Questions

How does Fair Work redundancy pay work?
Under the NES, eligible employees receive a set number of weeks of pay based on continuous service (e.g. 4 weeks after 1 year, up to 16 weeks at 9–<10 years, then 12 weeks at 10+). Some small businesses are exempt.
Is redundancy pay tax-free in Australia?
Part of a genuine redundancy can be tax-free (base + amount per year of service). Amounts above that are usually taxed as an ETP.
What is an ETP?
An Employment Termination Payment — the taxable portion of certain termination lump sums, taxed at concessional rates up to the ETP cap.
Is this official Fair Work or ATO advice?
No — a free estimate only. Check fairwork.gov.au, your award/agreement, and the ATO or a tax agent for your situation.

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