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Foreign employment termination payments

Last updated 28 June 2011

An employment termination payment (ETP) that you received due to termination of your employment overseas is a foreign employment termination payment (foreign ETP):

  • where you were an Australian resident for the period of your employment
  • where the payment was exempt from income tax under that country's laws, and
  • whether or not your foreign employer has an Australian business number (ABN) or has given you a PAYG payment summary - employment termination payment.

Note: A foreign ETP is different from a foreign termination payment (FTP)

Instructions for foreign ETPs

You need to convert your foreign ETPs into Australian dollars before you can complete item 4. For information about exchange rates and how to convert foreign payments, go to our website or phone 13 28 61.

  • Then on a separate piece of paper:
    • print SCHEDULE OF ADDITIONAL INFORMATION - ITEM 4
    • print your name, address and tax file number
    • for each foreign ETP, print the name of the payer and the foreign country in which you were employed, and write the amount of the payment
    • for each foreign ETP, print the appropriate code letter (from those listed at step 4 in question 4 Employment termination payments) or print NO CODE LETTER APPLIES.
     
  • Attach your schedule to page x of your tax return.
  • Print X in the YES box at Taxpayer's declaration question 2a on page xx of your tax return.

You will need to include the total amount of these foreign ETPs in the amount you show at I item 4 on your tax return.

Go to step 1 in question 4 Employment termination payments.

QC28061