What this ruling covers
Class Ruling CR 2026/76 is an ATO ruling confirming the tax treatment of payments made under OneSteel Manufacturing's (OSM) Whyalla Early Retirement Scheme 2026-2027. The scheme applies to OSM employees at the Whyalla Steelworks who receive a payment under this specific scheme.
The scheme runs from 15 October 2026 to 31 May 2027, as the company decommissions its old Blast Furnace and shifts to new clean energy steelmaking technology.
Tax treatment confirmed
The ruling confirms that part of any payment made under the scheme can be tax-free up to a set limit, with the remainder taxed as an employment termination payment.
For the 2026-27 year, the tax-free limit is $13,598 plus $6,801 per completed year of service.
Scope of the ruling
This is a narrow, employer-specific ruling. It applies only to OSM employees at the Whyalla Steelworks who receive a payment under this specific scheme and has no direct relevance to other businesses.
Key actions
- No action needed for businesses outside OSM - this ruling only applies to OSM employees receiving payments under this specific Whyalla scheme.
- OSM employees considering the scheme should check their eligibility against the class and exclusion criteria in the ruling and confirm the tax-free limit of $13,598 plus $6,801 per completed year of service for 2026-27.
- Affected employees should get personal tax advice on how much of their payment will be tax-free versus taxed as an employment termination payment (ETP).
- Expressions of interest are open for only one week after OSM issues letters, with OSM responding within 2 weeks of applications.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.