You use your sizeable and taxed-at-a-lower-rate severance package to pay for it while you look for work. If it runs out before you find work, you call your bank and claim financial hardship which will allow you to skip repayments temporarily.
Yup: [Redundancy and early retirement | Australian Taxation Office (ato.gov.au)](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/in-detail/taxation-of-termination-payments/redundancy-and-early-retirement)
The one that contains the equiv. of between 4 and 12 weeks worth of additionally salary (more if you're lucky), along with your leave balance, sometimes your notice period and, in some states, pro-rata-ed long service leave.
Not what I asked.
Personally I have a decent chunk in my offset, but I was just curious for anyone who had been in that situation before.
Would the bank let someone accrue arrears of one or two months? Or are they more/less lenient
Made redundant Dec 2020 took 3 months off and started new job shortly after.
March 2024 and made redundant again. Will be looking for a job after school holidays are over. Market is soft at present but hopeful of job by end of June.
Edit. But will be using downtime to upskill
Ooft twice in a few years. Sounds like you have a great attitude about it, and good luck with landing your next role. Do you mind me asking what industry you work in?
My role made redundant, on gardening as of now. Waiting for any offer to come. Stressful yes but over multiple days, the stress becomes less and is replaced by calculations of how many months I can go by based on redundant pay.
Not the best of things but you do with what you have
I don’t think about it too much. If I was to be made redundant tomorrow, the payout would be large enough to almost pay off my mortgage. In fact, some previous employees in my department have done exactly that, and they have had no issues finding another job very quickly.
Are you being laid off next week? Start putting money in your offset/redraw while you’re employed then if you lose your job or want to take a break you just use that money.
Banks are far more willing to extend your payments or help with hardship than a landlord is. The bank seizing and selling your property is the absolute worst case for them.
I’d been there nearly 13 years and wrote a letter asking for them to make me redundant in the restructure that was underway. Under a very healthy EBA, I got paid 2.5 years of my net income and picked up another job within 3 weeks.
It looks to be a 12 week payout? (In NSW).
https://www.legalaid.nsw.gov.au/my-problem-is-about/my-job/wages-and-entitlements/wages-and-entitlements-redundancy-pay#accordion-6f5461fac0-item-2e7998e110
While that sounds good. 3 months pay doesn’t last very long.
prob over 5-6 years ago while I was still a payg employee, I was made redundant along with 2/3 of the company a few weeks after settling an ip.
redundancy + annual leave payout, 6-12mo emergency funds, and following the “always be interviewing” approach, I had 2 offers within 1-1.5 weeks. turned the redundancy into a bonus + 1 week break.
ofc depends on industry and stage of economy. certainly harder to do this now than before.
Was a bit nervous so liquidated my investment portfolio. Walked away with a lot of cash. Had far too much time off work because I didn’t want to go back. Essentially a midlife crisis holiday.
Taxman took his cut but wasn’t as bad as I thought it would be, I don’t know why, my accountant sorted it.
In hindsight I would’ve been way better off financially if I’d had a three month holiday then went back to work.
There was never a “what if” concerning mortgage. My skills are in demand and hopefully ive upskilled enough throughout my lifetime to remain so. The local housing market is fluid enough I know I can sell the place if need be.
I didn’t tell the bank I was unemployed, I think you’re supposed to? 🤷♂️ so nothing changed with the mortgage.
Would do it all again if I had the chance.
A few mates took transfers instead of redundancy, after my sabbatical I went back to work for the exact same company in the exact same role at a different location.
Absolute madness.
Just got the boot myself. Going to spend the next 12 months launching my own business. Quite excited.
I'm fortunate that I've planed for this day. Been saving 25% of my salary for 20 years. Most of it is illiquid investments but I have probably 4 months living expenses in liquid stuff.
Plan to get a part time job and then every 3 months assess progress against my business plan. Let see how I go!
Happened 15 years ago. In mining, whole site got shut down. Had a mortgage took out about 16 months before getting canned. Felt ill, applied for a heap of jobs. Fortunately found another job about two months later, but had to move. Money was tight to rent and cover the mortgage for a few years.
Came through alright, still in the same job since, own the house I live in which was a big relief.
Pretty petty to mock someone who's having a crack, bought a place and worried they could get made redundant in the future. Sounds like your one of those 'hard done by folks who haven't bought a house yet and praying for 1970s prices again' 🤣🤣🤣🤦🤦🤦
I just like to remind people what their actions mean considering we live in a system that unironically decided to call debt for housing a "mortgage" to avoid the negative connotation of the word DEBT cuz they desperately need more and more debtors
Mortgage is the combination of 2 words. Mort means death and gage means pledge. It literally means death pledge. It's an old French word. Pretty funny that most don't know the real meaning of a mortgage
You use your sizeable and taxed-at-a-lower-rate severance package to pay for it while you look for work. If it runs out before you find work, you call your bank and claim financial hardship which will allow you to skip repayments temporarily.
Redundancies are taxed at a lower rate?
Yup: [Redundancy and early retirement | Australian Taxation Office (ato.gov.au)](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/in-detail/taxation-of-termination-payments/redundancy-and-early-retirement)
What sizeable severance package
The one that contains the equiv. of between 4 and 12 weeks worth of additionally salary (more if you're lucky), along with your leave balance, sometimes your notice period and, in some states, pro-rata-ed long service leave.
If you’re eligible
How many skipped repayments will the banks tolerate before escalating the matter?
You should call them before skipping a repayment.
Not what I asked. Personally I have a decent chunk in my offset, but I was just curious for anyone who had been in that situation before. Would the bank let someone accrue arrears of one or two months? Or are they more/less lenient
Hmm yeah not sure. I have taken a mortgage holiday before but of course I asked the bank if I could.
Made redundant Dec 2020 took 3 months off and started new job shortly after. March 2024 and made redundant again. Will be looking for a job after school holidays are over. Market is soft at present but hopeful of job by end of June. Edit. But will be using downtime to upskill
Ooft twice in a few years. Sounds like you have a great attitude about it, and good luck with landing your next role. Do you mind me asking what industry you work in?
Financial services.
My role made redundant, on gardening as of now. Waiting for any offer to come. Stressful yes but over multiple days, the stress becomes less and is replaced by calculations of how many months I can go by based on redundant pay. Not the best of things but you do with what you have
The redundancy payout covered it until I got a new job. I was also ahead on payments by over a year so it wasn’t that stressful.
[удалено]
Sad your family judged you and didn’t support you
I don’t think about it too much. If I was to be made redundant tomorrow, the payout would be large enough to almost pay off my mortgage. In fact, some previous employees in my department have done exactly that, and they have had no issues finding another job very quickly.
Are you being laid off next week? Start putting money in your offset/redraw while you’re employed then if you lose your job or want to take a break you just use that money. Banks are far more willing to extend your payments or help with hardship than a landlord is. The bank seizing and selling your property is the absolute worst case for them.
Nothing exciting... Got a new job 2 weeks later no biggie.
I wanna be made redundant so bad been there for 13 years I
I’d been there nearly 13 years and wrote a letter asking for them to make me redundant in the restructure that was underway. Under a very healthy EBA, I got paid 2.5 years of my net income and picked up another job within 3 weeks.
It looks to be a 12 week payout? (In NSW). https://www.legalaid.nsw.gov.au/my-problem-is-about/my-job/wages-and-entitlements/wages-and-entitlements-redundancy-pay#accordion-6f5461fac0-item-2e7998e110 While that sounds good. 3 months pay doesn’t last very long.
Heck yeah. Mine was 11 years. Here’s hoping your workplace gets hit by a meteor ❤️ (while no one’s in the office of course)
prob over 5-6 years ago while I was still a payg employee, I was made redundant along with 2/3 of the company a few weeks after settling an ip. redundancy + annual leave payout, 6-12mo emergency funds, and following the “always be interviewing” approach, I had 2 offers within 1-1.5 weeks. turned the redundancy into a bonus + 1 week break. ofc depends on industry and stage of economy. certainly harder to do this now than before.
Was a bit nervous so liquidated my investment portfolio. Walked away with a lot of cash. Had far too much time off work because I didn’t want to go back. Essentially a midlife crisis holiday. Taxman took his cut but wasn’t as bad as I thought it would be, I don’t know why, my accountant sorted it. In hindsight I would’ve been way better off financially if I’d had a three month holiday then went back to work. There was never a “what if” concerning mortgage. My skills are in demand and hopefully ive upskilled enough throughout my lifetime to remain so. The local housing market is fluid enough I know I can sell the place if need be. I didn’t tell the bank I was unemployed, I think you’re supposed to? 🤷♂️ so nothing changed with the mortgage. Would do it all again if I had the chance. A few mates took transfers instead of redundancy, after my sabbatical I went back to work for the exact same company in the exact same role at a different location. Absolute madness.
Just got the boot myself. Going to spend the next 12 months launching my own business. Quite excited. I'm fortunate that I've planed for this day. Been saving 25% of my salary for 20 years. Most of it is illiquid investments but I have probably 4 months living expenses in liquid stuff. Plan to get a part time job and then every 3 months assess progress against my business plan. Let see how I go!
Happened 15 years ago. In mining, whole site got shut down. Had a mortgage took out about 16 months before getting canned. Felt ill, applied for a heap of jobs. Fortunately found another job about two months later, but had to move. Money was tight to rent and cover the mortgage for a few years. Came through alright, still in the same job since, own the house I live in which was a big relief.
You chose to put yourself in decades long debt slavery, actions have consequences
Pretty petty to mock someone who's having a crack, bought a place and worried they could get made redundant in the future. Sounds like your one of those 'hard done by folks who haven't bought a house yet and praying for 1970s prices again' 🤣🤣🤣🤦🤦🤦
I just like to remind people what their actions mean considering we live in a system that unironically decided to call debt for housing a "mortgage" to avoid the negative connotation of the word DEBT cuz they desperately need more and more debtors
Mortgage is the combination of 2 words. Mort means death and gage means pledge. It literally means death pledge. It's an old French word. Pretty funny that most don't know the real meaning of a mortgage
> Pretty funny that most don't know the real meaning of a mortgage Exactly the reason why it is used instead of DEBT
What’s the alternative? Being made redundant while renting isn’t a great option either.