Ask for a breakdown of the payment

Get the components in writing: ordinary wages, unused leave, redundancy amounts and any other termination payment. A label on an offer letter does not settle the tax treatment. The reason employment ended, your age and the arrangement itself can affect the result.

The tax-free limit applies to the qualifying redundancy component. It is not an allowance you can apply to every dollar in the final payslip. Unused leave payments have their own withholding treatment.

Build a budget from the amount available

Compare the gross payout with expected withholding and any other deductions. Put essential living costs, loan repayments and immediate bills into a short-term budget. This helps show how long the available money may last while you consider work options.

Keep some flexibility for a tax adjustment. The final result can depend on other income in the same financial year, including a new job. Tax withheld when you leave is a payment towards your liability, not necessarily the final calculation.

Review the next step before committing the payout

Keep the termination letter, service dates, payment breakdown and income statements. Review these before making a large purchase or super contribution based on an assumed tax result.

If you need help with employment entitlements or support after losing your job, contact the relevant employment or government service. Your accountant can explain the tax figures; your licensed financial adviser can assess longer-term financial choices.