Australian Redundancy Pay: Questions Answered

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The NES redundancy rules in 2026 and the situations that change them — from small-business exemptions to what 'genuine redundancy' means.

Frequently asked questions

What is a genuine redundancy?

Where the employer no longer needs the job done by anyone (not just you), has consulted as required, and couldn't reasonably redeploy you. Only genuine redundancies attract NES redundancy pay and protection from unfair dismissal.

Do I get notice as well as redundancy pay?

Yes — notice of termination (1–5 weeks by age and service) is separate from and paid on top of redundancy pay.

Is redundancy pay taxed in Australia?

A 'genuine redundancy' payment is tax-free up to an indexed threshold (a base amount plus an amount per year of service); amounts above that are taxed concessionally. Check the current ATO thresholds.

Why does 10 years pay less than 9?

The NES scale peaks at 16 weeks for 9–10 years then drops to 12 weeks at 10+, because employees reach long service leave at 10 years.

Do casuals get redundancy pay?

Generally no — regular casual service usually doesn't count toward NES redundancy pay, though it can count toward other entitlements in some cases.

What if my award gives more?

Awards and enterprise agreements can provide more generous redundancy terms than the NES; the more generous entitlement applies.