Tax Information
The information on this page will provide insight into how BERT Payments will be taxed.
On this Page
Tax Rates
The tax rate applied is dependant on a number of factors:
a) the type of payment being made;
b) if you have supplied a TFN; and
c) if you are under or over the preservation age.
Below is the breakdown of tax withholding rates based on payment type and preservation age.
Please Note: If a tax file number is not stored on our system you will be taxed at the 47% rate.
Tax Witholding Rates
Below is a breakdown of tax withholding rates based on the claim type and your age.
Reason for Separation/Claim | Tax Rate |
Genuine Redundancy | If under Age Pension Age: 0% up to the tax free amount*; and For amounts over the tax free threshold up to the ETP Cap 17% if you have reached preservation age^; or 32% if you have not reached preservation age^ 17% If Age Pension age or over |
Redundancy, Promotion of Tools & Disability | If under Preservation age^: 32% If over Preservation age^: 17% |
Retirement (Over Age Pension Age) | 17% |
Leaving the Industry; Leaving Australia and Financial Hardship | 47% |
* Tax free amount for 2024/2025 financial year is $12,524 for the initial year, and $6,264 for each full year of service with your Employer.
^ Preservation Age is currently 60 years of age (Date of Birth after 30 June 1964). Refer to the ATO website for information regarding the preservation age.
The Fund has prepared a table that outlines the tax-free amounts for Genuine Redundancies based on your years of service with your employer.
Age Pension Age
Date of Birth | Age Pension Age |
1 July 1952 – 31 December 1953 | 65 Years and 6 Months |
1 January 1954 – 30 June 1955 | 66 Years |
1 July 1955 – 31 December 1956 | 66 Years and 6 Months |
On or after 1 January 1957 | 67 Years |
Tax Free Limit on BERT Genuine Redundancy Claims
The Fund has prepared a table that outlines the tax-free amounts for Genuine Redundancies based on your years of service with your employer.
Example 1:
Jim is aged 56 and was made redundant from XYZ Pty Ltd on 23 July 2024 due to shortage of work. XYZ Pty Ltd made Jim’s first contribution on 1 July 2017. Jim’s current balance is $45,404.
As Jim is under the Age Pension Age and he was made redundant due to shortage of work he meets the requirements for a genuine redundancy payment which is tax free up to the amount based on his years of service.
Jim calculates his tax-free amount as follows:
$12,524 + ($6,264 x 7*) = $56,372
* Jim has completed 7 full years of service since his first contribution into the BERT Fund.
As Jim’s entire BERT Balance ($45,404) is under the calculated tax free amount ($56,372), Jim will receive his redundancy payment tax free.
A genuine redundancy payment is tax-free up to a certain amount, based on the number of completed years of service with your Employer.
For the 2024/2025 financial year, the limit is:
$12,524 + ($6,264 for each full completed year of service*)
* Years of service is calculated from the first contribution into the Fund; or from the first contribution received after your last full claim
Tax File Number & Tax Withholding Rates
You have the choice of whether or not you quote your tax file number.
If you decide not to quote your number, then tax will be withheld from your benefit at the highest personal tax rate plus Medicare levy – currently 47%.
Any release in total or part of a member’s balance under financial hardship claim attracts a withholding rate of 47% in accordance with the ATO ruling, even if you have supplied a TFN.
Payment Summaries
BERT uses Single Touch Payroll (STP) to advise the ATO of payments made to you. From 1 February 2023, you will no longer receive Payment Summaries from us, or be able to download them from BOBB.
