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