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  • Your income statement or payment summary and tax return

    Your employer will give you one or more income statements or payment summaries that shows the amounts you receive and the tax withheld.

    If your employer reports to us through Single Touch Payroll (STP), you will receive an income statement.

    Use the information in your income statement or payment summary to prepare your tax return.

    See also:

    Find out what to do if you receive a:

    PAYG payment summary – individual non-business

    The PAYG payment summary – individual non-business is the paper payment summary (also known as a group certificate).

    If you receive a payment summary you will need to declare the following amounts in your tax return:

    • Lump sum A or B – unused annual leave and long service leave.
      These amounts are not part of your ETP, but you may pay tax on them at a concessional rate.
    • Lump sum E – payments that relate to earlier income years and return-to-work payments.

    You don't need to declare in your tax return amounts on your payment summary at:

    • Lump sum D – tax-free component of a genuine redundancy or early retirement scheme payments.

    This tax-free component is not part of your ETP and is not assessable income.

    See also:

    Income statement or PAYG payment summary – employment termination payment

    If your employer pays you an ETP they must either:

    • give you a PAYG payment summary – employment termination payment within 14 days
    • make a finalisation declaration through STP, if they report through STP.

    Your income statement or payment summary will show:

    • the taxable component of your ETP
    • the tax withheld
    • a code for the type of ETP.

    Once your employer provides the finalisation indicator in STP, we will pre-fill your tax return and display the information as 'tax ready' in myGov.

    If you have a payment summary, you will need to enter each of these amounts at Employment termination payments (ETP) in your tax return.

    We use the code on your income statement or payment summary to work out which cap to apply and the correct rate of tax for your situation. ETPs are concessionally taxed up to the cap.

    If the code is O or P, your ETP is subject to the whole-of-income cap. This means if you earn more income after you leave work, you may pay more tax on your ETP when you lodge your tax return. See The whole-of-income cap and your tax.

    Your income statement or payment summary may also show a tax-free component. This is not assessable income. You do not need to include this amount in your tax return.

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      Last modified: 26 May 2021QC 50513