Tax table for employment termination payments (NAT 70980) Table A: Withholding rates for ETPs Income component Age of person at the Component Rate of Cap to apply derived by your end of the income subject to withholding employee in the year that the PAYG income year payment is received withholding Life benefit ETP Under preservation Up to the ETP 32% ETP cap – taxable component age cap amount Payment is because of: Preservation age or Up to the ETP 17% ETP cap over cap amount early retirement scheme All ages Amount above 49% ETP cap genuine redundancy the ETP cap amount invalidity compensation for personal injury, unfair dismissal, harassment or discrimination. Life benefit ETP Under preservation Up to the 32% Smallest of – taxable component age relevant cap ETP cap and amount Payment is: cap a ‘golden handshake’ Preservation age or Up to the 17% Smallest of over relevant cap ETP cap and non-genuine redundancy amount payment cap severance pay All ages Amount above 49% Smallest of the relevant cap ETP cap and a gratuity amount income cap in lieu of notice for unused sick leave for unused rostered days off. Death benefit ETP paid All ages Up to the ETP 32% ETP cap to non-dependants cap amount – taxable component Amount above 49% ETP cap the ETP cap amount Death benefit ETP paid All ages Up to the ETP Nil ETP cap to dependants taxable cap amount –
Tax table for employment termination payments (NAT 70980) Table A: Withholding rates for ETPs Income component derived by your employee in the income year Age of person at the end of the income year that the payment is received Component subject to PAYG withholding Rate of withholding Cap to apply Life benefit ETP – taxable component Payment is because of: early retirement scheme genuine redundancy invalidity compensation for personal injury, unfair dismissal, harassment or discrimination. Under preservation age Up to the ETP cap amount 32% ETP cap Preservation age or over Up to the ETP cap amount 17% ETP cap All ages Amount above the ETP cap amount 49% ETP cap Life benefit ETP – taxable component Payment is: a ‘golden handshake’ non-genuine redundancy payment severance pay a gratuity in lieu of notice for unused sick leave for unused rostered days off. Under preservation age Up to the relevant cap amount 32% Smallest of ETP cap and cap Preservation age or over Up to the relevant cap amount 17% Smallest of ETP cap and cap All ages Amount above the relevant cap amount 49% Smallest of ETP cap and cap Death benefit ETP paid to non-dependants – taxable component All ages Up to the ETP cap amount 32% ETP cap Amount above the ETP cap amount 49% ETP cap Death benefit ETP paid to dependants – taxable All ages Up to the ETP cap amount Nil ETP cap income