bona fide redundancy payment

money paid to an employee who has been laid off, as his/her services are no longer required. Payments which qualify as bona fide redundancy benefits are eligible for the same tax concessions as payments made under an approved early retirement scheme. That is, until 30 June 1994, payments are treated as a concessional component of an eligible termination payment (ETP). From 1 July 1994, limited amounts of a bona fide redundancy payment are exempt from tax, including the superannuation contributions tax ("surcharge"), do not count for reasonable benefit limit (RBL) purposes and are excluded from the definition of an ETP.