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  • Multiple payments for same termination

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

    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.

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

    Do not withhold any amount for:

    • Higher Education Loan Program (HELP) debts
    • Student Start-up Loan (SSL) debts
    • Trade Support Loan (TSL) debts
    • Financial Supplement debts.

    See also:

    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 deceased estate.

    Use table A to work out how much to withhold.

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    Last modified: 14 Jun 2019QC 55466