Redundancy can affect anyone from the chairman to the trainee. In this situation, there are many things to consider.
It is important to understand how you can manage a redundancy payment so you can make the most of it.
Money to live on
You need to assess how much money you require to live on and how much you will be able to put aside from your payout.
Reducing the tax on your payout
Part of your payout may be tax-free. There are also potential ways to reduce the tax you pay on the taxable component.
You may be eligible for some Centrelink support following a redundancy. The structure of your assets and income may increase your eligibility for Government support. However, the receipt of a redundancy payment may impact your ability to access some Centrelink benefits.
Make sure you get the right advice so that your payout provides long term benefits, for example you may choose to reduce your mortgage or invest it for the long term in growth assets such as shares or contribute it to your super.