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  TAX - RATESPersonalEmployment TerminationEmployment Termination Payments      Friday, 22 January 2021  

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Employment Termination Payments


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From 1 July 2012
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Post 1/7/2007 Employment Termination Payment Caps
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Post 1/7/2007 Rules - Employment Termination Payments
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Post 1/7/2007 Life Benefit Employment Termination Payments
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Post 1/7/2007 Death Benefit Employment Termination Payments
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The tax treatment of the Taxable Component can be summarised as follows:

 

Recipient

Within Employment Termination Payment Cap

Excess above Employment Termination Payment Cap

Dependant

Tax-free

Recipient’s top marginal tax rate plus Medicare levy

Non-dependant

Maximum rate of 30%

Recipient’s top marginal tax rate plus Medicare levy

 

 


   
To 30/06/2012 Transitional Arrangements - Life Benefit Termination Pay
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Pre 30/6/2007 Rules - Tax Rates on Post 30/6/1983 Component
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Age

Max. Tax Rate Taxed Element

Max. Tax Rate Untaxed Element

Age under 55*

20%

30%

Age 55 or over:*

 -  Less than ETP low rate threshold below

Nil

15%

 -  More than ETP low rate threshold below

15%

30%

 

*Included in Taxable Income for Medicare Levy purposes except for the taxed element of the ETP low rate threshold.

 

 

Post 30/6/83 component – age 55 and over

 

Year

Low rate ETP threshold

2006/07

$135,590

2005/06

$129,751

2004/05

$123,808

2003/04

$117,576

2002/03

$112,405

2001/02

$105,843

2000/01

$101,188

1999/00

$97,109

1998/99

$94,189

1997/98

$90,916

1996/97

$86,917

1995/96

$83,574

1994/95

$79,975

 

 


   
Pre 30/6/2007 Rules - Tax Rates on Other Components
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This page was last edited on 5 January 2021

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