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. The limit depends on the number of years you work for the employer paying the redundancy.

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. For payments made on or after 13 October 2020.

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. For payments made on or after 13 October 2020.

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.