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  • Multiple payments for same termination

    Attention

    Warning:

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

    End of attention

    For various reasons, ETPs may be made in more than one instalment. Payments made after the initial payment that are subject to the ETP cap, will be subject to a lower ETP cap because the cap amount is reduced by the amount of all previous payments for the same termination.

    Attention

    Lump sum payments that are not ETPs may also be subject to PAYG withholding. Use the applicable tax table to work out the amount to be withheld from these payments.

    End of attention

    Find out more

    For unused annual leave, leave loading or long service leave payments, refer to Tax table for unused leave payments on termination of employment (NAT 3351).

    End of find out more
    Attention

    Do not allow for any tax offsets or Medicare levy adjustments.

    Do not withhold any amount for:

    • Higher Education Loan Program (HELP) debts
    • Financial Supplement (FS) debts.
    End of attention

    Death benefit ETPs

    A death benefit termination payment is received by a person after another person’s death, in consequence of termination of the other person’s employment. The amount you withhold depends on a number of factors including whether the payment is made:

    • directly to a dependant of the deceased
    • directly to a non-dependant of the deceased
    • to the trustee of the decease estate.

    Use table A to work out how much to withhold

    Further information

    For information on deceased estates and their tax obligations go to:

    End of further information
    Last modified: 01 Jul 2014QC 39434