Free Redundancy Calculator Australia (2026-27)
This redundancy calculator works out your minimum redundancy pay under the National Employment Standards, how much of it is tax-free, and the tax on the rest.
Redundancy calculator: the NES redundancy pay scale
| Completed years | Weeks of pay | At $1,800/week | Tax-free limit |
|---|---|---|---|
| 1 | 4 | $7,200 | $20,399 |
| 2 | 6 | $10,800 | $27,200 |
| 3 | 7 | $12,600 | $34,001 |
| 4 | 8 | $14,400 | $40,802 |
| 5 | 10 | $18,000 | $47,603 |
| 6 | 11 | $19,800 | $54,404 |
| 7 | 13 | $23,400 | $61,205 |
| 8 | 14 | $25,200 | $68,006 |
| 9 | 16 | $28,800 | $74,807 |
| 10 or more | 12 | $21,600 | $81,608 |
How redundancy pay is taxed
A genuine redundancy payment is tax-free up to $13,598 plus $6,801 per completed year. Anything above that is an employment termination payment taxed at 32% (under preservation age) or 17% (at or over it) up to the $270,000 cap, and 47% above it. Unused annual leave and long service leave are taxed separately.
Frequently asked questions
How does the redundancy calculator work out my pay?
It applies the National Employment Standards redundancy scale (4 to 16 weeks of base pay depending on completed years of service), then splits the payment into the tax-free part and the taxable employment termination payment (ETP) using the ATO 2026-27 limits.
How much redundancy pay is tax-free in 2026-27?
For a genuine redundancy, $13,598 plus $6,801 for each completed year of service is tax-free. The rest is an ETP, taxed at 32% under preservation age or 17% at or over it, up to the $270,000 ETP cap.
Do small businesses have to pay redundancy?
Generally no. Employers with fewer than 15 employees are exempt from NES redundancy pay, although an award or agreement may still require it.
How many weeks of redundancy pay am I entitled to?
Under the National Employment Standards: 4 weeks after 1 year of service, 6 after 2, 7 after 3, 8 after 4, 10 after 5, 11 after 6, 13 after 7, 14 after 8, 16 after 9, and 12 weeks after 10 years or more. Your award or contract may give more.