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  • Lump sum payments



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

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    Employer lump sum A or B payments

    These are any lump sum payments you received from your employer for unused annual leave or unused long service leave.

    Lump sum D payments

    These are the tax-free components of a genuine redundancy payment or an early retirement. This tax-free income will not be included in your taxable income.

    Lump sum E payments in arrears

    These payments relate to an earlier income year or years and should normally be shown at 'E' on your PAYG payment summary - individual non-business.

    Include at this section any lump sum payments you received in relation to the following:

    • back payments of salary or wages that accrued in a period more than 12 months before the date of payment
    • salary or wages that accrued during a period of suspension and were paid to you on resuming duty
    • back payments of non-superannuation annuities that accrued, in whole or in part, in an earlier year or years of income
    • back payments of repatriation and social welfare pensions, allowances or payments, including those paid by foreign governments
    • back payments of periodical workers and accident compensation payments but not payments made to the owner of the policy
    • back payments of Commonwealth education or training payments.

    You may get a tax offset if you received certain lump sum payments in 2017–18. We will calculate the tax offset for you based on the information you provide in your tax return.

      Last modified: 28 Jun 2018QC 55471