Taxation of Redundancy Payments: A Case Study on Relevant Legislation

This case study delves into the taxation aspects of redundancy payments, referencing key legislations such as the Redundancy Payment Act 1965, Public Service Act 1999, and Redundancy Payment Act 2003. It discusses a specific case involving Ms. Weeks and the tax implications of her redundancy payment, including the application of Employment Protection Act 1978 and Clause 97. The analysis covers private ruling requests and court appeals, providing a comprehensive overview of the legal framework surrounding redundancy and taxation in the Australian context. Desklib provides a platform for students to access this and other solved assignments for academic support.

TAXATION

Redundancy payment act 1965
It is that type of labour law in that the employee perform job for the
organisation that can be terminated that can be known as a redundancy.
 It is that act in which an employee is redundant would need to give
reward with a compensation or sum.
 It can be redundant certain employee by the organisation to minimize
job number to introduce modification in their working condition or
save financial spend.
 In the case of Ms weeks who were worked as an executive in the
Australian Tax office that occurred redundancy in March 2010.
 The organisation feels that her skills could not be effectively applied
in the office at the time when she was in leave.

Public service Act 1999
 It that type of act in which there is law it outlined the various
requirements for the redundancy payment.
 It is that payment which is being tested that are received through
employee which resultant into termination
 It is concerned with the job role an employee being dismissed or
terminated from a redundancy.
 In the case of Ms weeks is that they received payment for its
termination in that the former emp
 loyer deduct the amount of taxation in her payment that is 16.5 %.
 There was reason that she was an employment termination payment in
which the total deducted amount is $7,825.

Redundancy Payment Act 2003
 According to Section 10 there is a
Redundancy Payment act, 2003 in which
there is statutory of the payable amount
that is 14 days payment for each year of
one bonus and service.
 As per the Section 11(2) it is an extra
service for a particular period that will be
approve as part for the year.

Request for private ruling
 It is an application for the purpose of
requesting a private ruling.
 In the case of Ms Weeks in that it was
decided through commissioner which gives
payment to her was not free from tax as a
redundancy payment.

Employment Protection Act 1978
 It highlighted the provision of redundancy
pay in the Employment protection act,
1978
 It is applied to an employee who has been
completed there employment more than
two years and minimum work required for
16 hours in a week.
 He/ she must completed their age among
18 to 65 year for men and 60 for women.

Clause 97
 It is that procedure under which it is used
only for an individual EL2 worker's job
 It is required to appeal from:
To the Federal court
To the full Federal court
To the full Federal court's decision