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Payments that are ETPs

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

Last updated 20 June 2024

Payments to include in employee's ETP:

  • a gratuity or golden handshake
  • genuine redundancy or early retirement scheme payments above the tax-free limit
  • severance pay
  • non-genuine redundancy
  • payments in lieu of notice of termination
  • unused rostered days off (RDOs)
  • unused sick leave
  • compensation for loss of job
  • compensation for wrongful dismissal, as long as it is paid within 12 months of the actual termination of employment
  • payments for loss of future super payments
  • payments arising from an employee's termination because of ill health (invalidity), other than compensation for personal injury
  • lump sum payments paid on the death of an employee

 

Payments not included in employee's ETPs:

  • accrued leave payments for unused annual leave and long service leave
  • genuine redundancy or early retirement scheme payments up to the tax-free limit
  • salary, wages, allowances, bonuses and incentives owing to the employee for work done or leave already taken
  • super benefits (for example, a lump sum or income stream from a super fund)
  • foreign termination payments
  • certain payments for restraint of trade
  • certain payments for personal injury if the employee is compensated for their inability to be employed
  • employee share scheme payments
  • an advance or loan

 

 

 

 

QC26218