Sacked TAFE workers now hit with massive bills after TasTAFE error

Sacked TasTAFE workers are now being warned their tax returns could be hit by nearly $5,000 because TasTAFE incorrectly calculated their redundancy payments.

In a letter to affected former staff, TasTAFE admits it “withheld too little tax” from redundancy payouts made in December 2025 because of the “incorrect application of the tax rules.”

The letter also confirms TasTAFE “did not classify the payment” correctly.

These are workers Felix Ellis sacked days before Christmas.

They lost their jobs, budgeted for their families, and made decisions about their future based on the redundancy payments they were given.

Now, months later, they are being told TasTAFE’s mistake could reduce their tax refund or increase the amount of tax they owe by almost five grand.

This is an appalling way to treat people who gave years of service to TasTAFE and its students.

After 13 years of Liberal waste, Tasmanians are paying the price through cuts to essential services, and now the very workers who were sacked are being made to pay again.

Felix Ellis needs to explain how this happened, how many former staff are affected, and what he is going to do to make sure workers are not left carrying the cost of TasTAFE’s mistake.

TasTAFE needs to be training the workforce Tasmania needs, not sacking teachers, cutting courses, hiking fees, and leaving former workers thousands of dollars out of pocket.