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Redundancy rebates for workers
Workers who have been made redundant are able to claim tax credits after a new rebate scheme came into affect this month.
People who received redundancy payments before the rebate scheme came into place would often be put in a higher tax bracket, meaning they would often pay 33 per cent on their redundancy payment.
With the new scheme, the rebate means someone who earns $36,000 a year and is paid $25,000 in redundancy would now pay $6,750 tax instead of $8,250, including the tax rate of 21 per cent for the $36,000 wage.
Inland Revenue has released a form to use for redundancy rebate claims. It can be found here
The rebate can be claimed by anyone made redundant on or after 1 December 2006 and applies to the first $60,000 of redundancy compensation.