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13 years of Liberal redundancy errors could leave taxpayers with the bill

By Ella Haddad MP - Shadow Minister for Workplace Relations

08 October 2026

13 years of Liberal redundancy errors could leave taxpayers with the bill

 

The Liberals' redundancy payment stuff-up could go back more than a decade.

 

The Government has already admitted it treated some redundancy payments as tax-free when they should have been taxed. But the Liberals have been in office for 13 years, and Minister Ellis says paying redundancies this way is a "historic practice".

 

So how many years of payouts did they get wrong?

 

If this goes back years, public servants who took a redundancy and moved on could be hit with a tax bill they never saw coming. Many will have spent that money, trusting what the Government told them was right.

 

Not to mention the fact the Tax Office could hit the Government with a large fine that taxpayers would need to pay while Eric Abetz continues to cut TAFE, schools and hospitals.

 

The Government has rushed through new rules to cover tax bills for workers going forward. But it has said nothing about those who left years ago, or what the total cost could be.

 

Premier Rockliff and Eric Abetz must tell Tasmanians:

  • How many years of redundancy payments were treated incorrectly.
  • How many workers are affected.
  • Whether the Government could face a fine from the tax office.
  • What the additional cost to taxpayers could be.

 

After 13 years of the Liberals, Eric Abetz is cutting jobs and services to pay for their mistakes and waste, and Tasmanians are being left to pick up the tab.

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Authorised by G Luckman, Australian Labor Party, L2/63 Salamanca Pl, Hobart TAS 7000