Key superannuation rates and thresholds

Transitional ETP cap amounts up to 30 June 2012

Transitional arrangements applied if you were entitled, as at 9 May 2006, to a payment made on the termination of employment under:

a written contract
an Australian or foreign law (or an instrument under such a law)
a workplace agreement under the Workplace Relations Act 1996.

Employment termination payments made after 30 June 2007 (other than those made under the transitional arrangements) can not be contributed to or rolled over into super.

The taxable component of a transitional termination payment will be taxed at:

no more than 15% up to the lower cap amount
no more than 30% on the amount which exceeds the lower cap amount but does not exceed the upper cap amount
the top marginal rate for amounts in excess of the upper cap amount.

Income year

Lower cap amount

Upper cap amount

(not indexed)

2011-12

$165,000

$1 million

2010-11

$160,000

$1 million

2009-10

$150,000

$1 million

2008-09

$145,000

$1 million

2007-08

$140,000

$1 million

In accordance with section 82-10B of the Income Tax (Transitional Provisions) Act 1997 (ITTPA 1997), the lower cap amount in relation to a transitional termination payment received in an income year is the same as the ETP cap amount for the year (which is generally available each February). In accordance with section 82-10D of the ITTPA 1997, the upper cap amount in relation to a transitional termination payment received in an income year is $1 million. Both the lower cap amount and the $1 million upper cap amount are reduced by all amounts received by the person that have previously used the transitional termination payments concession.

Transitional arrangements in relation to termination payments ceased to apply from 1 July 2012.

Sections within Employment termination payments

Last Modified: Wednesday, 27 February 2013