Michael Sukkar MP

EXPOSURE DRAFT LEGISLATION RELEASED FOR GENUINE REDUNDANCY AND EARLY RETIREMENT SCHEME PAYMENTS

The Australian Government is committed to supporting older Australians by releasing draft legislation today to reform genuine redundancy and early retirement scheme payments.

The draft legislation is open for public consultation and will extend the concessional tax treatment for genuine redundancy and early retirement scheme payments to older Australians.

Genuine redundancy payments are made when a job is abolished and early retirement scheme payments are made when a person retires early, or resigns, as part of a scheme put in place by an employer.

This measure was announced in the 2018/19 Mid-Year Economic and Fiscal Outlook and will align the age below which a person can receive genuine redundancy and early retirement scheme payments with the Age Pension qualifying age from 1 July 2019. This will address concerns that some older Australians who, due to their age, cannot access either the Age Pension or the tax-free component of genuine redundancy payments.

The measure will ensure that more Australians nearing retirement will not be taxed on part of the payment they receive if their job is abolished or if they receive an early retirement scheme payment.

The Exposure Draft Bill and Explanatory Memorandum are available on www.treasury.gov.au/consultation/c2019-t392918

Submissions will close on 1 August 2019.

Media contact: Office of The Hon Michael Sukkar MP – 02 6277 7230