Employment Termination Payments (ETP)

Employment termination payments for not-for-profits

Employment termination payments (ETPs) are specific payments made to your not-for-profit organisation's employee when they stop working for you. ETPs are subject to concessional tax treatment depending on the employee’s age and length of employment.

Redundancy payments

Certain redundancy payments are tax-free up to a limit depending on your years of service with that employer.

Schedule 11 - Tax table for employment termination payments

Tax table for payments made to an individual as an employment termination payment or a delayed termination payment.

Schedule 7 - Tax table for unused leave payments on termination of employment

Tax table for payments made to an employee for unused leave on termination of their employment.

Taxation of termination payments

Find out how to calculate and report the tax on an employment termination payment (ETP) and other payments when an employee's employment is terminated.