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  • Section B: Payment details

    On this page:

    Date of payment

    Show the date you made the payment to the payee.

    Use the format DDMMYYYY.

    For example, show the payment date of 25 September 2013 as:

    Example of the completed 'Date of payment' field on the PAYG payment summary - employment termination payment form.

    Total tax withheld

    Show the total tax withheld in whole dollars.

    For example, show $12,672.70 as:

    Example of the completed 'Total tax withheld' field on the PAYG payment summary - employment termination payment form.

    Taxable component

    Include the total of the payment, less the tax free component. Show the taxable component in whole dollars.

    For example, show a taxable component of $34,221.89 as:

    Example of the completed 'Taxable component' field on the PAYG payment summary - employment termination payment form.

    For death benefit ETP's paid to a dependant of the deceased, only include the amount over the ETP cap in the taxable component. The ETP cap is $180,000 for the 2014–15 income year.

    For example, show the taxable component of a death benefit employment termination payment of $210,000 paid to a dependant as:

    Example of the completed 'Taxable component' field on the PAYG payment summary - employment termination payment form.

    $30,000 is the amount over the ETP cap of $180,000.

    Tax free component

    You do not have to complete this field.

    The tax free component consists of the:

    • pre-July 1983 segment
    • invalidity segment.

    Show the tax free component in whole dollars. For example, show a tax free component of $6,594.55 as:

    Example of the completed 'Tax-free component' field on the PAYG payment summary - employment termination payment form.

    See also:

    Employment termination payment (ETP) codes

    Read through all the information below before selecting the code that best describes the type of employment termination payment being made.

    If more than one code applies to the payment, you will need to complete a separate payment summary for each code.

    Is this payment a life benefit ETP?

    A life benefit ETP is a lump sum payment made to a living employee in consequence of their employment being terminated. Where no payment had been made to your employee in a previous income year for the same termination, then complete either code R or code O, whichever code best describes the payment being made.

    Table of codes for Life benefit ETP. Code R = ETP made because of one of the following: 1. early retirement scheme, 2. genuine redundancy, 3.invalidity, 4. compensation for personal injury, unfair dismissal, harassment or discrimination. Code 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.

    Is this payment part of a payment made in an earlier income year for the same termination?

    If the life benefit ETP is related to a payment made in an earlier income year for the same termination of employment, then complete either code S or code P, whichever code best describes the payment being made.

    Table of codes for multiple payments for same termination codes. Code S = This is a code R 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. Code P = This is a code O payment any 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 tranistional termination payment.

    Example

    Joe's employment was terminated on 30 April 2016 and he is entitled to a $200,000 ETP. The ETP was made under an early retirement scheme. On 1 May 2016 (2015–16 income year) Joe's former employer paid $150,000 of his entitlement. On 31 July 2016 (2016–17 income year) Joe receives the remaining $50,000 of his entitlement.

    His former employer completes the PAYG payment summary employment termination payment (from 1 July 2012) (NAT 70868-02.2014) for the 2016–17 income year for the remaining $50,000 paid in that year. They select code S as they had made a code R type payment to the employee in a previous income year for the same termination.

    End of example

    Is this payment a death benefit ETP?

    If you are paying the ETP to a person because of another person's death, select either codes DBN or T, whichever code best describes the payment being made.

    Table of codes for Death benefit ETP. Code D = Death benefit ETP paid to a dependant of the deceased. Code B = Death benefit ETP paid to a non-dependant of the deceased and you made a termination payment to the non-dependant in a previous income year for the same termination. Code N = Death benefit ETP paid to a non-dependant of the deceased. Code T = Death benefit ETP paid to a trustee of the deceased estate.

    Type of death benefit

    A death benefits dependant (code D) is any of the following:

    • the deceased person's spouse or de facto spouse
    • the deceased person's former spouse or former de facto spouse
    • the deceased person's child aged less than 18
    • any other person who was a dependant of the deceased just before they died
    • any other person the deceased had an interdependency relationship with just before they died.

    Spouse of the deceased includes all of the following:

    • another person (of any sex) with whom the deceased was in a relationship that was registered under a law of a prescribed state or territory
    • another person (of any sex) who lived with the deceased on a genuine domestic basis in a relationship as a couple.

    Child of the deceased includes all of the following:

    • an adopted child, stepchild or ex-nuptial child of the deceased
    • a child of the deceased's spouse
    • someone who is a child of the deceased within the meaning of the Family Law Act 1975 (for example, a child who is considered to be a child of a person under a state or territory court order giving effect to a surrogacy agreement).

    A death benefits non-dependant is any person who does not fall into one of the categories of dependant listed above.

    If the payment was made to a non-dependant, select code N.

    Example of the completed 'Emplyment termination payment (ETP) code' field on the PAYG payment summary - employment termination payment form.

    You do not have to withhold an amount from a death benefit termination payment paid to the trustee of a deceased estate. However, you must issue a payment summary to the trustee for the taxable component and include the payment summary as part of your PAYG withholding payment summary annual report.

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    Last modified: 30 Apr 2019QC 26159