Introducing our new Two Account Structure
Tax-free genuine redundancy payments will be protected by making a distinction between non-voluntary and voluntary payments. There is no action required unless you are considering resigning or retiring.
In 2025, the ATO changed how it interprets tax law. This affected our ability to pay tax-free genuine redundancy claims. To protect tax-free genuine redundancy payments, we temporarily limited claims for voluntary terminations (resigned or retired).
What’s changed?
New Voluntary Termination Account
From 22 June, there will be two account types:
- Default Account
- Voluntary Termination Account (VTA)
All members will be automatically placed in the Default Account. You can’t claim for voluntary termination (resignation or retirement) from this account.
If you resign or retire AND you want to make a claim, during the claims process you will be prompted to move to the Voluntary Termination Account.
Not resigning or retiring? No action is required!
If you are considering resigning or retiring soon, call our team for support.
1300 346 033
Voluntary Termination Account
If you resign or retire, you must move your account to a Voluntary Termination Account (VTA) before you can make a claim. You will be given this option during the claims process.
This change is permanent
Once you move to a VTA, you can’t change back.
If your VTA stays open, any new contributions will go into that account.
You will only be able to claim those funds if you leave employment again through resignation or retirement.
This change is necessary to protect tax-free genuine redundancy payments as a response to ATO interpretation changes.
Why are we making this change?
The ATO requires the clear separation of redundancy payments from voluntary termination payments. Your account can only be one kind of account at a time.
Moving into the Voluntary Termination Account limits when you can make a claim. You only need to move to this account if you resign or retire and want to claim your funds.
What hasn’t changed.
Unless you resign or retire, and want to claim your funds, nothing changes.
Your account balance will remain unaffected, and redundancy contributions will continue as normal into a Default account.
Genuine redundancy claims can still be made tax-free (up to the applicable limit assuming required conditions are met) and invalidity and death claims remain available.
Frequently Asked Quesions
Get in touch with one of our Member Experience team on 1300 346 033.
Yes. If your position is made genuinely redundant, stay in the Default Account and you can claim tax-free up to the applicable limit.
To be eligible for a genuine redundancy you must be a permanent employee under pension age at the time of termination.
A voluntary termination is when you decide to leave your employment. This is when you resign or retire.
A voluntary redundancy is a genuine redundancy. You will be eligible to receive your claim tax-free (up to applicable limit). You can claim from the Default account.
You can choose to move into the Voluntary Termination Account during the claim process after you resign or retire.
The process is the same for permanent and casual employees.
The ATO requires a clear distinction between redundancy accounts and voluntary termination accounts. Moving into the Voluntary Termination Account limits when you can make a claim. You only need to move to this account if you resign or retire and want to claim your funds.
No. If you are not resigning or retiring, you do not need to do anything.
No, you can only have one account type with PPTEF at a time.
You can’t hold more than one account type with PPTEF. If we’ve identified you have a duplicate account, AND one of those accounts is a Voluntary Termination Account, your accounts will be merged into one Voluntary Termination Account.
If both accounts are Default, both accounts will merge into one Default account.
Default Account
This is the account you will be placed in by default.
Only non-voluntary termination claims can be made from this account:
- Tax free genuine redundancy
- Other non-voluntary terminations
Voluntary Termination Account (VTA)
This account allows claims for retirement and resignation. If you choose to leave your job and want to make a claim, you must move into this account as part of the claim process.
Only voluntary termination claims can be made from this account:
- Resignation
- Retirement
Note: both accounts allow claims for invalidity and death (via beneficiaries)
Only Voluntary Termination Account status will be displayed. If you’re account does not say Voluntary Termination Account, you are in the Default Account.
The amount you can claim depends on your account balance and termination reason.
If your claim is for a non-voluntary reason
(e.g. genuine redundancy or “other termination”)
- You can claim up to $15,000 every 28 days
- If your balance is less than $15,000, you can claim whatever is in your account
If your termination reason was genuine redundancy, then your claim will be tax-free up to the applicable limit.
If your claim is for a voluntary reason
(e.g. resigning or retiring)
- You must first move into the Voluntary Termination Account
- Then you can claim your full account balance