Termination Pay Calculator Australia

Termination Pay Breakdown

Notice period3 weeks
Notice pay$4,500.00
Redundancy pay period7 weeks
Redundancy pay$10,500.00
Unused annual leave payout$3,000.00
Total termination pay$18,000.00

Important notes

These calculations are based on the National Employment Standards (NES) minimums. Your Award or Enterprise Agreement may provide higher entitlements.

Redundancy pay only applies to genuine redundancy situations. It does not apply if you resign or are dismissed for misconduct.

Notice pay and redundancy pay may be taxed differently. Consult a tax professional for your specific situation. Source: Fair Work Ombudsman (fairwork.gov.au/ending-employment).

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Annual Leave Payout Calculator

Calculate your annual leave payout

Frequently Asked Questions

What is included in termination pay?

Termination pay typically includes: notice pay (or payment in lieu of notice), redundancy pay (if applicable), and payout of any accrued but unused annual leave. Long service leave may also apply if you have worked long enough. Source: Fair Work Ombudsman (fairwork.gov.au).

Do I get redundancy pay if I resign?

No. Redundancy pay is only available if your position is made genuinely redundant by your employer. If you resign or are dismissed for misconduct, you are not entitled to redundancy pay. Source: Fair Work Act 2009, s119.

Is termination pay taxed?

Different components are taxed differently. Unused annual leave is taxed at a maximum rate of 32% for most employees. Genuine redundancy payments up to the tax-free threshold are tax-free, with the remainder taxed at 32%. Source: ATO (ato.gov.au/individuals/tax-return/2024/tax-return/income-questions/employment-termination-payments).

What if my employer refuses to pay?

If your employer refuses to pay your entitlements, you can lodge a complaint with the Fair Work Ombudsman, or apply to the Federal Circuit Court for assistance. Source: fairwork.gov.au/ending-employment.

Does the NES apply to all workers?

The NES applies to all national system employees (most private sector workers in Australia). State public servants, some other state employees, and truly independent contractors may not be covered. Source: Fair Work Act 2009, Part 2-2.