Australia - Making the most of transitional termination payments up to June 30, 2012

Global Watch ()

With the June 30, 2012 deadline approaching, employers should consider the workforce opportunities and threats posed by the impending expiry of transitional grandfathering rules that allow certain employee termination payments to receive beneficial tax treatment.

As explained below, employers may face an accelerated departure of senior employees from their businesses who wish to take advantage of the beneficial tax treatment prior to June 30, 2012. At the same time there may be more workforce planning opportunities for employers contemplating a corporate restructure or any cross-border termination before that date.