Life and death benefit ETP
There are two different types of ETP:
- life benefit termination payment, which is received by a person as a result of the termination of their employment
- death benefit termination payment, which is received by a person (for example, a dependant) after another previously employed person has died.
The tax treatment of the two types of ETP is similar – however, the tax paid on a death benefit ETP can depend on the age of the recipient and whether they are a dependant.
For information about the ETP tax rates, see ETP caps that apply.