Redundancy Isn’t Just a Job Loss – It’s a Financial Shock

When redundancy hits, it rarely arrives quietly. One day you have certainty, routine and a steady income. The next, it’s meetings, paperwork, and a sentence that changes everything.

For many Australians, particularly those impacted by recent mining sector redundancies in Queensland, redundancy isn’t just a career disruption. It’s a financial shock that ripples through every part of life.

Bills don’t pause. Mortgages don’t wait. Families still rely on your income. And suddenly, you’re expected to make big financial decisions while dealing with stress, uncertainty and emotional fallout.

This is where clear, practical redundancy financial advice matters most.

Why Redundancy Hits So Hard Financially

Redundancy is different from resigning or changing jobs on your own terms. It removes income first and forces decisions later. Even with a redundancy payout, many people underestimate how quickly that money can disappear.

Redundancy payments often include severance pay, unused annual leave and sometimes long service leave. While this can feel like a buffer, it’s usually designed to cover a limited period – not an open-ended job search.

On top of that, redundancy payments can affect eligibility for government income support. Many Australians are required to serve a waiting period before receiving JobSeeker payments, meaning their redundancy payout must stretch further than expected.

The result? Financial pressure, stress, and fear, all at once.

Redundancy Financial Advice: What to Do First

If you’ve been made redundant, the first few weeks are critical. Not because you need to have everything figured out, but because early action gives you options.

1. Confirm Your Redundancy Entitlements

Before you spend a dollar, make sure you understand exactly what you’ve been paid and why.

Your redundancy payout may include:

• Redundancy (severance) pay

• Payment in lieu of notice

• Unused annual leave

• Long service leave

Check that your entitlements align with your employment contract and the National Employment Standards. The Fair Work Ombudsman provides tools and guidance to help employees confirm redundancy pay calculations.

If something doesn’t feel right, ask questions early. Mistakes are easier to fix sooner rather than later.

2. Understand Centrelink Waiting Periods

Many people assume government support will start immediately. That’s not always the case.

If you receive a redundancy payout, Centrelink may apply an income maintenance waiting period before JobSeeker payments begin. The length of this waiting period often matches the number of weeks your redundancy payment represents.

It’s still important to lodge your claim early with Centrelink so the clock starts ticking. Delaying your application can delay payments further down the line.

3. Reset Your Budget — Immediately

This is not the time for guesswork.

Sit down and map out:

• Your essential monthly expenses

• Your redundancy payout and savings

• Any other income sources

From there, calculate how long your money needs to last. This creates clarity – and clarity reduces panic.

Look for areas where spending can be reduced or paused temporarily. Subscriptions, discretionary spending and non-essential upgrades can wait. This isn’t about deprivation, it’s about control.

If you’re worried about meeting repayments, contact lenders, utility providers or insurers early. Many organisations offer hardship arrangements, but they work best when you engage before missing payments.

4. Be Strategic With Your Redundancy Payout

One of the biggest mistakes people make after redundancy is treating their payout like “extra” money.

It’s not a windfall. It’s income replacement.

Good redundancy financial advice focuses on protecting that money so it supports you for as long as possible. That may mean:

• Prioritising living expenses

• Avoiding unnecessary large purchases

• Carefully managing debt repayments

• Understanding any tax implications

This is where professional advice can make a meaningful difference.

5. Get Redundancy Financial Advice — Sooner, Not Later

Redundancy is not the time to “wing it.”

Speaking with a financial adviser or a qualified financial counsellor can help you:

• Stretch your redundancy payout further

• Make informed decisions about debt, super and savings

• Avoid costly mistakes driven by stress or fear

Many Australians delay seeking advice because they think it’s only for high-income earners. In reality, redundancy financial advice is often most valuable during moments of uncertainty.

Don’t Ignore the Emotional Impact

Redundancy doesn’t just affect your bank balance. It can impact confidence, identity and mental health.

It’s common to feel embarrassed, angry or anxious, even when the redundancy had nothing to do with performance. These emotions can cloud financial decision-making if left unchecked.

Stay connected. Talk openly with your partner, family or trusted friends. Maintain structure in your days, even while job searching. And if stress or anxiety becomes overwhelming, seek professional support through your GP or mental health services.

Looking after your wellbeing is not a luxury, it’s part of protecting your financial future.

Moving Forward With Confidence

Redundancy is a shock! But it doesn’t have to define your future.

With clear information, early action and the right support, many Australians emerge from redundancy more financially aware, more resilient and better prepared for what comes next.

If you’ve recently been made redundant, remember this:
You don’t need all the answers today. You just need a plan.

And the right redundancy financial advice can help you build one, calmly, clearly and with confidence.

Need Support After Redundancy?

If you’ve recently been made redundant, you don’t have to navigate the financial fallout alone.

Getting the right redundancy financial advice early can help you:

• Make your redundancy payout last longer

• Understand Centrelink waiting periods and entitlements

• Regain control of your budget and cash flow

• Plan your next move with confidence

At HPartners, we believe financial advice isn’t just about numbers – it’s about people. We take the time to understand your situation and help you make clear, practical decisions during uncertain times.

If redundancy has thrown your finances into question, now is the time to talk.
Reach out to the HPartners team to start a conversation about your next steps.

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.