Methodology, sources and limits
Every figure traces to the Fair Work Act, a state LSL Act or an ATO publication. Here is how they are combined and where the model simplifies.
Updated on · Mottalib Radif · Editorial policy
Steps
- Weekly base pay from the entered salary (÷ 52), fortnight (÷ 2) or month (× 12 ÷ 52).
- Redundancy: NES table by years of continuous service (s. 119); zero for small business employers or resignations.
- Notice: NES table (s. 117) plus one week if over 45 with at least 2 years, paid in lieu at base rate (allowances not modelled).
- Annual leave: unused days × daily base rate (weekly ÷ 5), plus 17.5% loading if selected.
- Long service leave: state rule table (full entitlement, accrual per year, pro-rata threshold and termination conditions). Payable if service ≥ full period; if between pro-rata and full period, payable when the state pays for any reason (VIC, WA, SA, NT) or when the termination is employer-initiated (redundancy, non-misconduct dismissal) in the other states. Leave already taken is deducted.
- Tax: genuine redundancy tax-free limit (base + per completed year); excess and notice in lieu taxed as ETP at 32%/17% up to the ETP cap, 47% above; leave at 32% on redundancy, otherwise at marginal rates (2026–27 resident brackets + 2% Medicare) on top of the annual salary.
Parameters 2026–27
| Parameter | Value |
|---|---|
| Tax-free base | $13,598 |
| Tax-free per year | $6,801 |
| ETP cap | $270,000 |
| Whole-of-income cap | $180,000 |
| Preservation age | 60 |
| Resident brackets | 0 / 15% from 18,201 / 30% from 45,001 / 37% from 135,001 / 45% from 190,001 |
| Small business | < 15 employees |
Tests
36 automated tests check the NES redundancy table (all bands), the notice scale including the over-45 rule, long service leave outcomes per state, the tax-free limit, ETP taxation and the 2026–27 marginal-rate calculation. They run at every build.
Not modelled
- Award or enterprise agreement redundancy scales above the NES; industry portable LSL schemes.
- Allowances, overtime and penalties in payment in lieu of notice.
- Pre-1993 leave accruals, invalidity and early retirement schemes, death benefits.
- Whole-of-income cap interaction with other income (non-excluded ETPs).
- Superannuation on leave payouts, HELP/HECS withholding, Medicare levy surcharge.
- Reduction of redundancy pay by Fair Work Commission order.
Privacy
All calculations run in your browser. Nothing is sent to a server. Last updated 2026-09-16.
