TAX LAW CHANGE
Eligibility for tax free redundancy payments is now aligned with the age pension qualifying age
Claims on a Protect account due to genuine redundancy attracts a tax free component, based on the person’s length of service with their employer. Previously you could only benefit from this if you were under the age of 65. However, new legislation from 2019 has extended the age limit to match an individual’s age pension qualifying age, which means those working longer in life are no longer exempt from the tax benefits of being made redundant.