employment termination payments (etp)
A Tax Offset ensures that ETPs up to the lower cap
amount incur a 15% tax rate if above preservation age
and 30% for those under preservation age. It is not possible to roll over these monies to a super fund.
| Income Year |
Lower Cap Amount |
| 2012-13 |
$175,000 ** |
| 2011-12 |
$165,000 |
| 2010-11 |
$160,000 |
| 2009-10 |
$150,000 |
| 2008-09 |
$145,000 |
| 2007-08 |
$140,000 |
** From 1 July 2012 a complimentary limit applies for
golden handshakes. The offset is limited such that it only
applies to that portion of the ETP where it takes the
person's total annual taxable income (including
the ETP) to no more than $180,000. The amount
above will be taxed at marginal tax rates.
Tax-free part of bona fide
redundancy payments and approved
early retirement scheme payments limits |
| Income Year |
Base Limit |
Per Complete Year of Service |
| 2006/2007 |
$6,783 |
$3,392 |
| 2005/2006 |
$6,491 |
$3,246 |
| 2004/2005 |
$6,194 |
$3,097 |
| 2003/2004 |
$5,882 |
$2,941 |
| 2002/2003 |
$5,623 |
$2,812 |
| 2001/2002 |
$5,295 |
$2,648 |
| 2000/2001 |
$5,062 |
$2,531 |
| 1999/2000 |
$4,858 |
$2,429 |
| 1998/1999 |
$4,712 |
$2,356 |
| 1997/1998 |
$4,548 |
$2,274 |
| 1996/1997 |
$4,348 |
$2,174 |
| 1995/1996 |
$4,180 |
$2,090 |
| 1994/1995 |
$4,000 |
$2,000 |