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  • Foreign termination payment (FTP)



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If you think you received a foreign termination payment (discussed at question 4), the following description will help you decide what to do.

    An FTP is a payment that:

    • you received in consequence of the termination of your employment in a foreign country and the payment relates only to a period of employment when you were a foreign resident, or
    • was not exempt from income tax in the foreign country, you were an Australian resident during the period of the employment or service, and you received the payment as a result of the termination of your
      • employment in a foreign country where the foreign earnings were exempt from Australian tax for the period of employment, or
      • qualifying service on an approved project and the eligible foreign remuneration was exempt from Australian tax during the period of engagement.

    The payment is not an FTP if it is a superannuation benefit paid from a superannuation fund, retirement savings account or an approved deposit fund or if it is a payment of a pension or an annuity.

    Foreign termination payments are non-assessable non-exempt income, that is, tax-free income. Do not show them anywhere on your tax return.

      Last modified: 29 Jun 2011QC 28061