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  • Payment summaries

    You must provide your employee with one or more PAYG payment summary – employment termination payment forms within 14 days of making an ETP. The payment summary now includes an ETP code that you use to describe the type of payment, and determines which cap, ETP cap or whole-of-income cap is applied. Below is a table showing the type of ETPs and which code applies:

    Life benefit ETP

    Code

    Description

    R

    ETP because of:

    • early retirement scheme
    • genuine redundancy
    • invalidity
    • compensation for
      • personal injury
      • unfair dismissal
      • harassment
      • discrimination.
       
     

    O

    Other ETP not described by R, for example, golden handshake, gratuity, payment in lieu of notice, payment for unused sick leave, payment for unused rostered days off.

    Multiple payments for same termination

    Code

    Description

    S

    This is a code R payment. You made one of the following payments to your employee in a previous income year for the same termination:

    • a code R payment
    • a code O payment
    • a transitional termination payment.
     

    P

    This is a code O payment and you made one of the following payments to your employee in a previous income year for the same termination:

    • a code R payment
    • a code O payment
    • a transitional termination payment.
     
    Death benefit ETP

    Code

    Description

    D

    Death benefit ETP paid to a dependant of the deceased.

    B

    Death benefit ETP paid to a non-dependant of the deceased. You made a termination payment to the non-dependant in a previous income year for the same termination.

    N

    Death benefit ETP paid to a non-dependant of the deceased.

    T

    Death benefit ETP paid to a trustee of the deceased estate.

    Transitional termination payments were certain ETPs paid to an employee under an employment contract entered into before 10 May 2006. They were taxed concessionally if paid before 1 July 2012.

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    Last modified: 14 Jun 2019QC 55466