Taxation of termination payments

An overview of eligible termination payment lump sums.

Information you can give to your employees to help them understand eligible termination payments.

Use the lists below to work out which payments to include in the employee's ETP.

Learn what type of leave is not included in eligible termination payments and how this leave is treated.

Find out about genuine redundancy, early retirement scheme payments and reporting the tax-free amounts.

Learn about when an employment termination payment may be eligible for a tax-free component.

ETPs are concessionally taxed up to a certain limit, or 'cap'. The top rate of tax applies to amounts over the cap.

How to calculate and apply the whole-of-income cap amount to an ETP.

How to amend eligible termination payment information in a payment summary.

Learn about how the 12-month rule affects tax on eligible termination payments.