• Foreign termination payment (FTP)

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If you think you received a foreign termination payment (discussed at question 4), the following description will help you decide what to do.

    An FTP is a payment that:

    • you received in consequence of the termination of your employment in a foreign country and the payment relates only to a period of employment when you were a foreign resident, or
    • was not exempt from income tax in the foreign country, you were an Australian resident during the period of the employment or service, and you received the payment as a result of the termination of your
      • employment in a foreign country where the foreign earnings were exempt from Australian tax for the period of employment, or
      • qualifying service on an approved project and the eligible foreign remuneration was exempt from Australian tax during the period of engagement.
       

    The payment is not an FTP if it is a superannuation benefit paid from a superannuation fund, retirement savings account or an approved deposit fund or if it is a payment of a pension or an annuity.

    Foreign termination payments are non-assessable non-exempt income, that is, tax-free income. Do not show them anywhere on your tax return.

      Last modified: 01 Jun 2012QC 25766