Payments that are ETPs

Table: What is and isn't an ETP

Payments that are ETPs include:

Payments that are not ETPs include:

A gratuity or golden handshake

Accrued leave payments such as:

  • unused annual leave and/or leave loading
  • unused long service leave


Severance pay

Payments below the genuine redundancy or early retirement scheme tax-free limit

Non-genuine redundancy payments

Salary, wages, allowances, bonuses and incentives owing to the employee for work done or leave already taken

Payments in lieu of notice of termination

Super benefits (for example, a lump sum or income stream from a super fund)

Unused rostered days off (RDOs)

Foreign termination payments

Unused sick leave

Certain payments for restraint of trade

Compensation for loss of job

Certain payments for personal injury if you are compensated for your inability to be employed

Compensation for wrongful dismissal, provided it is paid within 12 months of the actual termination of employment

Employee share scheme payments

Payments for loss of future super payments

An advance or loan

Payments arising from an employee's termination because of ill health (invalidity), other than compensation for personal injury.


Payments in respect of genuine redundancy or paid under an early retirement scheme that exceed the tax-free limit


Lump sum payments paid on the death of an employee


    Last modified: 26 Jul 2016QC 26218