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  • Leaving your job

    When you leave a job the tax on payments you receive may be different to your normal income. This depends on the reason for leaving and type of payments.

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    Tax on unused entitlements when you leave a job

    The tax you pay on unused leave, termination of employment or redundancy payments may be different to the tax you pay on your normal income. The tax you pay depends on both:

    • the reason for leaving the job
    • any unused entitlements you may have accrued, such as long service leave or sick leave.

    If you receive any lump sum payments from your employer for unused annual leave or long service leave, you may pay tax at a lower rate than your other income. These lump sum payments will appear at either 'Lump sum A' or 'Lump sum B' on your income statement or payment summary.

    If as a result of COVID-19 you are taking leave, have been stood-down or have lost your job, see Tax on employment payments.

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    Lodging your tax return early

    In limited circumstances, where you meet the eligibility criteria you can lodge your tax return before the end of the income year. To lodge you will need the income and tax information from your income statement or payment summary. This information will not be available to pre-fill your tax return until the end of the income year. You will need to follow the current process for lodging your tax return early.

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    Income statement

    If your employer reports to us through Single Touch Payroll (STP), they don't need to provide you with a payment summary. Payment summaries have been replaced by income statements under STP.

    Your income statement shows your year-to-date:

    • salary and wages
    • payments (including any you receive in leaving your job)
    • tax withheld
    • super.

    Your income statement is available to you through ATO online services via myGov, your tax agent or you can contact us to request a copy. You should only use this information when it appears as 'tax ready' in ATO online services.

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    Payment summary

    If your employer doesn't report to us through STP, they need to provide you with a payment summary after the end of the income year (30 June). Your payment summary will show how much you have been paid and how much tax was withheld from these payments during the income year.

    If you are changing address or travelling, make sure you give your employer an address where they can send your payment summary.

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    Last modified: 20 May 2021QC 27125