NSW redundancy funding: agency approvals are not the same as your payout entitlement
When a NSW public-sector role is proposed for redundancy, two different questions arise: what process and payments apply to the employee, and how the agency funds the cost. Treasury's TPG23-23 addresses the second question. It is not an individual redundancy calculator.
What the funding policy covers
The August 2026 revision applies to non-executive redundancies in General Government Sector agencies. It excludes senior executives and casual, temporary and fixed-term employment. Public financial and non-financial corporations, including State Owned Corporations, are generally outside its coverage, subject to limited exceptions.
The three approval steps
First, the agency must obtain the Premier's Department's concurrence for the redundancy or redeployment program under the workforce mobility policy. The funding policy says this is required even when Treasury funding is not sought, and before the program is announced.
Second, an agency seeking funding applies to Treasury with the approved program, supporting calculations and evidence of genuine ongoing savings. Third, it seeks approval for reimbursement after actual redundancy costs have been paid. These are distinct steps: approval to implement a program is not itself approval of Treasury reimbursement.
Funding is limited
Treasury assesses requests against available funding, policy objectives and the agency's capacity to meet costs. If support is refused or only partly approved, the agency must meet redundancy costs from its existing budget. A funding shortfall is not described as cancelling the agency's payment responsibilities.
The policy distinguishes eligible redundancy costs from annual leave, long service leave and superannuation costs. Exclusion from this reimbursement scheme does not mean an employee loses a separate entitlement.
Questions worth asking
Request the applicable workforce-change policy, written explanation of placement efforts, proposed dates and an itemised payment calculation. Ask which approvals apply to the program and who can explain your personal eligibility. Do not make an irreversible decision using an agency funding document alone.
This article explains the published August 2026 funding policy, not individual legal, financial or tax advice.
Official sources
Sources checked 13 November 2026. These are independent explanatory guides, not government publications or government endorsement. Original documents are linked rather than reproduced because whole-document reproduction rights have not been established.
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