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Your ETP end of year statement and your tax return

What to do when you receive your income statement or payment summary for your employment termination payment (ETP).

Last updated 10 June 2024

What you will receive

Your employer will give you one or more income statements or payment summaries that shows the amounts you receive and the tax withheld.

We use the code on your income statement or payment summary to work out which cap to apply and the correct rate of tax for your situation. ETPs are concessionally taxed up to the cap.

If the code is O or P, your ETP is subject to the whole-of-income cap. This means if you earn more income after you leave work, you may pay more tax on your ETP when you lodge your tax return.

Your income statement or payment summary may also show a tax-free component. This is not assessable income. You do not need to include this amount in your tax return.

What you need to do

At the end of the income year, you will receive an income statement if your employer reports electronically. Otherwise, you will receive a PAYG payment summary.

Use the information in your income statement or payment summary to prepare your tax return.

Find out what to do if you receive a:

Income statement

Once your employer finalises your tax and super information in Single touch payroll (STP), we will pre-fill your tax return and display the information as Tax ready in myGov.

Your income statement will include all lump sum amounts, taxable components, tax withheld and tax codes.

You can access your income statement in myGov. Make sure you review the pre-fill information before you submit your tax return.

PAYG payment summary

If your employer is not using STP, you will receive one or both of

PAYG payment summary – individual non-business

If you receive a PAYG payment summary – individual non-business (also known as a group certificate) you will need to declare the following amounts in your tax return:

  • Lump sum A or B – unused annual leave and long service leave.
    These amounts are not part of your ETP, but you may pay tax on them at a concessional rate.
  • Lump sum E – payments that relate to earlier income years and return-to-work payments.

You don't need to declare in your tax return amounts on your payment summary at:

  • Lump sum D – tax-free component of a genuine redundancy or early retirement scheme payment.

This tax-free component is not part of your ETP and is not assessable income.

PAYG payment summary – employment termination payment

If your employer gives you a PAYG payment summary – employment termination payment it must be within 14 days of the payment date.

Your payment summary will show:

  • the taxable component of your ETP
  • the tax withheld
  • a code for the type of ETP.

You will need to enter each of these amounts at Employment termination payments (ETP) in your tax return.