Your remediation payment will be taxed as a lump sum payment. You can check the IRD website to see if your total earnings, including your Holiday’s Act remediation payment, will place you into a different tax bracket for this financial year. You may also want to seek independent tax advice.
We encourage you to contact the relevant organisations such as Inland Revenue for advice about whether your remediation payment affects any agreement you have with them about your current earnings, benefits, child support or any other matters.
The Inland Revenue website has useful information on tax treatment of lump sum payments such as this useful information on the tax treatment of lump sum payments. You can also contact the IRD directly on 0800 227 774 or use your MyIR account.