I always thought those voluntary retirement schemes were weird! Another interesting feature of the schemes is that they need to be individually approved by the taxation office,[1], probably because payments under them are tax-free,[2] while 'normal' redundancy payments are often taxed at about 30%.[2]
It's hard to see how it is in the public interest to promote these schemes with tax incentives. It would be interesting to see an official rationale for them.
It's hard to see how it is in the public interest to promote these schemes with tax incentives. It would be interesting to see an official rationale for them.
[1] eg. http://law.ato.gov.au/atolaw/view.htm?docid=%22CLR%2FCR20137...
[2] https://www.ato.gov.au/Individuals/Working/Working-as-an-emp...
[3] it gets complicated, but see page 6 of https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/B...