If you have been retrenched, it is important to get your financial arrangements worked out for the short term so you can take a lower-stress approach to thinking about what your next move is.
Creating a budget will help you plan for your altered financial situation and will help you work out how long your redundancy payment will last. A budget should include your bills (loans, insurance, school-fees, etc.) and the money you need to live day to day (groceries, petrol, etc).
There are many free budget planning tools available on the internet that you can use, including:
- Money Smart (ASIC) - for tips and tools to help make the most of your finances, including how to manage your money, or deal with credit, debt or other financial issues.
- NAB Budget Planner - to help you control your monthly income and expenses.
- Pocketbook – a personal finance app for your smart phone.
Also remember to make other arrangements for any direct debits that you have currently tied to the account your salary/ wages went into.
Tax: What proportion of my payout will I receive?
To find out how much of your redundancy payment will end up in your bank account, visit the Australian Tax Office website for information about the tax implications of your payout.
Getting Financial Advice
If you think that you may be in immediate financial difficulty, you should seek financial counselling.
Financial counsellors provide information and support to assist people in financial difficulty. There are free financial counselling services in every State and Territory in Australia.
Financial Counselling Australia can link you to financial counsellors in your area.
You can also use the Money Smart (ASIC) online search engine for local financial counselling services and Centrelink also provides a free Financial Information Service (call 13 23 00 and say "Financial Information Service").