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  • Schedule 11 – Tax table for employment termination payments

    For payments made from 1 July 2018 to 12 October 2020  

    This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by paragraph 12-85(b) of Schedule 1 to the TAA.

    Using this schedule



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

    End of attention

    You should use this schedule if you pay an individual an amount that is either:

    • an employment termination payment (ETP)
    • a delayed termination payment – that is, a payment that would be an ETP but was paid more than 12 months after the relevant termination of employment.

    If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including employment termination payments.

    See also:

    Employment termination payments

    An ETP is a lump sum payment you make:

    • to an employee when their employment is terminated (referred to as a 'Life benefit' ETP)
    • to an employee’s estate because their employment has been terminated due to death (referred to as a 'Death benefit' ETP).

    ETPs include lump sum payments paid upon resignation, retirement or death. A payment from a super fund is not an ETP.

    A payment must generally be made within 12 months of termination to qualify as an ETP. A payment made outside 12 months is a delayed termination payment, unless we have given approval for the payment to be treated as an ETP.

    Tax treatment of ETPs

    ETPs can comprise of two different components:

    • a tax-free component
    • a taxable component.

    You only withhold tax from the taxable component.

    Depending on the type of ETP, the concessional tax treatment may be limited to the smaller of:

    • the ETP cap
    • the whole-of-income cap.

    The top rate of tax applies to amounts paid in excess of these caps.

    The ETP cap amount for the 2018–19 income year is $205,000. This amount is indexed annually.

    The whole-of-income cap amount for the 2018–19 income year is $180,000. This amount is not indexed. This cap is reduced by any other taxable income payments your employee receives in the income year – for example, salary or wages you have paid to your employee.

    In some cases, you may need to include an ETP in the taxable payments when working out the whole-of-income cap.

    The ETP payment summary has an ETP code that you use to describe the type of ETP and which cap has been applied to it.

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    Last modified: 14 Jun 2019QC 55466