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Lump sum payments

How to complete the lump sum payments section.

Last updated 27 June 2018

Employer lump sum A or B payments

These are any lump sum payments you received from your employer for unused annual leave or unused long service leave.

Lump sum D payments

These are the tax-free components of a genuine redundancy payment or an early retirement. This tax-free income will not be included in your taxable income.

Lump sum E payments in arrears

These payments relate to an earlier income year or years and should normally be shown at 'E' on your PAYG payment summary - individual non-business.

Include at this section any lump sum payments you received in relation to the following:

  • back payments of salary or wages that accrued in a period more than 12 months before the date of payment
  • salary or wages that accrued during a period of suspension and were paid to you on resuming duty
  • back payments of non-superannuation annuities that accrued, in whole or in part, in an earlier year or years of income
  • back payments of repatriation and social welfare pensions, allowances or payments, including those paid by foreign governments
  • back payments of periodical workers and accident compensation payments but not payments made to the owner of the policy
  • back payments of Commonwealth education or training payments.

You may get a tax offset if you received certain lump sum payments in 2017–18. We will calculate the tax offset for you based on the information you provide in your tax return.

QC55471