Key superannuation rates and thresholds

ETP cap amount

An employment termination payment (ETP) is a payment made in consequence of the termination of employment. It can include:

• amounts for unused rostered days off
• amounts in lieu of notice
• a gratuity or 'golden handshake'
• an employee's invalidity payment (for permanent disability, other than compensation for personal injury)
• certain payments after the death of an employee.

ETPs do not include:

• a payment for unused annual leave or unused long service leave
• the tax-free part of a genuine redundancy payment or an early retirement scheme payment.

The amount up to the ETP cap amount will be taxed at a concessional rate. The amount in excess of the ETP cap amount will be taxed at the top marginal rate.

Sections within Employment termination payments

• ETP cap amount
• ETP cap amount for life benefit termination payments
• ETP cap amount for death benefit termination payments
• Transitional ETP cap amounts up to 30 June 2012
• Tax-free part of genuine redundancy payments and early retirement scheme payments