What to Do When You Lose Your Job in Australia

Losing your job is one of the most stressful things that can happen. Whether you've been made redundant, let go without warning, or left on bad terms, there are things you're legally entitled to, deadlines you can't miss, and financial lifelines that many Australians don't claim. This guide covers all of it.

1. Your final pay — what you're owed

Your employer must pay everything you're owed when your employment ends. This typically includes:

• All outstanding wages, including any penalty rates or allowances
• Accrued annual leave (paid at your full rate, including annual leave loading if your award specifies it)
• Long service leave (if you've worked long enough to have accrued it)
• Payment in lieu of notice (if you're not required to work out your notice period)
• Redundancy pay (if your role was made redundant and you qualify — see below)

Most awards require final pay to be processed within seven days of your last day. If you're owed money and it hasn't arrived, contact the Fair Work Ombudsman on 13 13 94.

2. Redundancy pay — what you're entitled to

Australia has statutory redundancy pay under the National Employment Standards (NES) — unlike New Zealand, where there's no legal entitlement. If your role is made genuinely redundant, you're owed severance based on your years of service:

*Reduces at 10+ years under the NES. Your enterprise agreement or contract may offer more.

Tax treatment of redundancy pay

Genuine redundancy payments receive concessional tax treatment. A portion is tax-free based on your years of service, and the remainder may be taxed at a lower rate than ordinary income. The tax-free threshold changes each financial year — check the ATO website for the current figures. Make sure your employer codes your payment correctly, as the wrong coding can cost you thousands.

3. Notice periods

Under the NES, your employer must give you minimum notice based on how long you've worked for them:

Over 45 with 2+ years of service? You're entitled to an additional week on top of the above. Your award or enterprise agreement may also provide longer notice periods than the NES minimums — check your contract.

Your employer can pay you in lieu of notice instead of having you work the notice period. Either way, you must receive the equivalent pay.

4. If you think you were dismissed unfairly — act within 21 days

If your redundancy wasn't genuine, or if you were let go and believe the dismissal was harsh, unjust, or unreasonable, you may have an unfair dismissal claim. You must lodge with the Fair Work Commission within 21 calendar days of your dismissal taking effect. This deadline is strict — extensions are only granted in exceptional circumstances.

Note: you need at least 6 months' service to bring an unfair dismissal claim (12 months if your employer has fewer than 15 employees). There's also a high income threshold — if you earn above $174,200 (2025–26) and aren't covered by an award or enterprise agreement, unfair dismissal may not apply. A general protections claim may still be available.

5. Centrelink — applying for JobSeeker

JobSeeker Payment is the main Australian Government income support for people who are unemployed and looking for work. As of March 2026, the maximum rate for a single person with no children is around $808 per fortnight (rates are indexed twice yearly — check Services Australia for the current figure).

Apply as soon as possible

Your payment start date is generally backdated to when you lodged your claim, not when it's approved. Don't wait until you need the money — lodge immediately. You can do this through myGov if your Centrelink account is already linked.

The waiting period

If you received a redundancy payment, Centrelink will apply a "liquid assets waiting period" and possibly an "income maintenance period" — meaning you may need to wait before payments start. The length depends on how much you received and your household circumstances. This can feel unfair, but it's worth lodging early to lock in your start date for after the waiting period ends.

Mutual obligations

To keep receiving JobSeeker, you'll need to meet "mutual obligation" requirements — typically job searching, attending appointments, or participating in approved activities. What's required depends on your situation. Your initial appointment with Services Australia will set this out for you.

6. Superannuation — can you access it early?

Super is generally locked away until preservation age (60 for most people), but there are genuine hardship provisions:

• Severe financial hardship: If you've been on an eligible government payment (like JobSeeker) for 26 consecutive weeks and can't meet reasonable and immediate family living expenses, you can apply to your super fund directly. You can generally access between $1,000 and $10,000.
• Compassionate grounds: Administered by the ATO — covers unpaid mortgage instalments to prevent home foreclosure, certain medical expenses, and a few other circumstances.

Also check that your previous employer has been paying your super correctly. Unpaid super is unfortunately common in Australia. You can check your super balance through myGov (linked to the ATO) and see if contributions from your employer match what they should have been paying — 11.5% of ordinary time earnings as of 2024–25, rising to 12% in 2025–26.

7. If you have a mortgage — pause or restructure

Most Australian banks offer hardship assistance to customers who've lost their job. Options typically include:

• Repayment pause (usually 3–6 months)
• Switching to interest-only repayments temporarily
• Extending your loan term to reduce repayments

Call your bank's financial hardship team directly — don't go through general customer service. Under the National Credit Act, banks are required to consider genuine hardship applications. A repayment pause means interest still accrues, so it's worth asking your bank to model the long-term cost before you decide.

8. Tax — you're probably owed a refund

If you worked for only part of the financial year before losing your job, you've likely had too much tax withheld. Lodging your tax return early could mean a refund. You can lodge via myGov once the financial year ends (1 July). If your employment ended partway through the year, you may be able to lodge earlier — your employer will need to finalise your income statement in the ATO system first.

9. Your first week — a timeline

• Day 1–2
  Get everything in writing Request a formal termination letter confirming your last day, what you're owed, and your redundancy details. Don't sign anything until you've read it carefully — particularly any "deed of release" that may waive future claims.
• Day 3–5
  Lodge your Centrelink claim Do it now even if a waiting period applies. Lock in your start date. Gather: your Tax File Number, bank details, employment separation certificate (ask your employer for this), and details of any payout you received.
• Day 7
  Check your final pay Compare what you received against what you calculated you're owed. Include accrued annual leave and any leave loading. If anything's missing, contact the Fair Work Ombudsman.
• Day 10–14
  Review your unfair dismissal options (if relevant) If you believe your dismissal wasn't genuine or wasn't handled correctly, get advice before the 21-day deadline arrives. Community legal centres offer free initial advice.
• Week 2–3
  Contact your bank and update your super Notify your bank or mortgage lender if repayments will be a problem. Log into myGov and check your super balance and that your employer has paid contributions correctly.

10. Quick reference — key Australian numbers and links