We understand facing redundancy can be a stressful time for you and your loved ones and we are here to help.
Here is some key information to consider when faced with redundancy:
Taking a look at your finances
Whatever your plans, it’s a good time to assess your financial position.
- Create a budget to help you understand how much of a buffer you currently have.
- Consider your short-term and long-term financial needs before making any decisions about your redundancy payment.
- If you find yourself with a large redundancy payment, consider paying off debt or make a personal contribution to your super.
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Understanding your redundancy and what will happen to your super
It’s important to understand your entitlements and how they are taxed. When your position/role is made redundant, you may be entitled to a redundancy payment from your employer. This payment can include:
- A severance payment
- An incentive payment
- Payment of your notice period if your employer wants you to finish immediately
- Unused annual leave and long service leave.
Any sick leave or personal leave you have accrued is not usually paid out to you.
For information on the tax treatment of redundancy payouts, refer to our fact sheet.
Protecting your emotional wellbeing
It’s natural to jump to the question of money. But it’s equally important to think about your emotional wellbeing. Take time to reflect and think about your future.
- This is a good time to check in with family and friends as they can help you work through your options.
- Prepare yourself for getting back into the job market. Review and update your CV, jump online to see what’s out there and prepare yourself for job interviews.
- It’s common to have a period of time between being made redundant and finding a new job. Stay active during this time by volunteering, upskilling or re-connecting with your network.
Turning redundancy into early retirement
If you do decide to retire one thing is guaranteed - your life will be different. It’s important to think about the emotional as well as the financial impacts of retiring. Have a think about:
- When can you access your super and do you have enough to fund the lifestyle you want?
- Consider semi-retirement by moving into part-time work
- Can a transition to retirement strategy help you find the right balance?