VPS Redundancy Calculator
Estimate a Victorian Public Service separation package — TSP, ISP, ASP or VDP — with notice pay, the NES minimum and the tax-free amount.
A VPS Targeted Separation Package is 4 weeks' pay + 1 week if over 45 with 2+ years + 2 weeks per completed year up to 10 years. From 1 July 2026 the Applicant (ASP) and Immediate (ISP) Separation Packages add a $15,000 or $10,000 lump sum. Notice is paid on top.
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VPS separation packages compared
The Victorian Public Service Enterprise Agreement 2024 sets notice and redeployment principles, not the package formula. The formulas are Victorian Government benchmarks that employers must not exceed.
| Package | Base | Lump sum | Per completed year | Age extra |
|---|---|---|---|---|
| TSP | 4 weeks | — | 2 weeks, max 10 years | +1 week if over 45 with 2+ years |
| ISP (from 1 Jul 2026) | 4 weeks | $10,000 + up to 3 months' redeployment in lieu | 2 weeks, max 10 years | — |
| ASP / ERP (from 1 Jul 2026) | 4 weeks | Up to $15,000 | 2 weeks, max 15 years | +4 weeks if over 54 |
| VDP | 4 weeks | Up to $15,000 | 2 weeks, max 15 years | — |
Lump sums are pro-rated to your current FTE. The 4 weeks and age weeks use your actual pay when you leave; the per-year weeks use your average FTE over the last 10 or 15 years. Example: TSP, 12 years full time, age 50, $94,900 a year ($1,820 a week): 4 weeks $7,280 + 1 week $1,820 + 20 weeks $36,400 = $45,500, plus 5 weeks' notice $9,100.
Sources: Public Sector Industrial Relations Policies 2025, Redundancy and Redeployment (vic.gov.au, updated 16 February 2026); Implementing Budget Reprioritisations in the Victorian Public Service (from 1 July 2026), Tools and Attachment C (vic.gov.au, updated 1 July 2026); Victorian Public Service Enterprise Agreement 2024 (FWC AE525755) clause 22.2 and Schedule A; Fair Work Act 2009 s117 and s119; ATO "Genuine redundancy payments" (updated 5 June 2026). Read 26 September 2026.
Frequently asked questions
How is a VPS redundancy (Targeted Separation Package) calculated?
A Targeted Separation Package is 4 weeks' pay, plus 1 extra week if you are over 45 with at least 2 years' continuous service, plus 2 weeks' pay for each completed year of continuous service up to 10 years. The maximum is 25 weeks' pay. Source: Victorian Public Sector Industrial Relations Policies 2025, Redundancy and Redeployment (updated 16 February 2026).
What are the VPS separation packages from 1 July 2026?
For budget reprioritisations initiated on or before 30 June 2027 there are three packages. Applicant Separation Package: 4 weeks' pay + an incentive of up to $15,000 + 2 weeks per completed year up to 15 years + 4 more weeks if over 54. Immediate Separation Package: 4 weeks' pay + $10,000 + 2 weeks per completed year up to 10 years + up to 3 months of the redeployment period paid in lieu. Targeted Separation Package: as above. Source: Implementing Budget Reprioritisations in the VPS (from 1 July 2026), Attachment C.
What is a VPS Voluntary Departure Package?
A VDP is 4 weeks' pay + a lump-sum incentive of up to $15,000 for a full-time employee + 2 weeks' pay per completed year of continuous service up to 15 years. The scheme needs ATO approval, and you cannot be re-employed in the Victorian public sector for 3 years.
How much notice do VPS employees get?
Under the Victorian Public Service Enterprise Agreement 2024 clause 22.2: 2 weeks if you have 3 years' service or less, 4 weeks if more than 3 years, plus 1 week if you are over 45 with at least 2 years' continuous service. Notice or pay in lieu is paid on top of the separation package.
Which service counts for a VPS separation package?
Continuous service in any Victorian public sector agency. Commonwealth, other state and local government service does not count, leave without pay does not count, and service already paid out in an earlier package is excluded.
Is a VPS separation package tax-free?
A TSP, ISP or ASP paid because your role is abolished is a genuine redundancy payment; a VDP or Early Retirement Package under an ATO-approved scheme gets the same treatment. For 2026-27 the first $13,598 plus $6,801 per completed year of service is tax-free, including pay in lieu of notice. The rest is taxed at 32% under 60 or 17% at 60 or older, including the Medicare levy.
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