Document ID: chunk:federal_register_of_legislation:F2024L00664:clause:11_5
Version: federal_register_of_legislation:F2024L00664
Segment Type: clause
Provision Reference: sch 11 cl 5
Character Range: 215690–216938

5     Uses table A to determine the withholding rate on amounts above the whole-of-income cap of $96,000. As the whole $8,000 ETP is under cap, no further calculation is required.  Nil

SmallBiz withholds $2,560 from Jane's ETP of $10,000. This is 32% of Jane's taxable component of $8,000.

Example 3: Whole-of-income cap – payment greater than cap

Chris is younger than his preservation age. He has his employment terminated by MediumBiz in January. His employment termination does not meet the criteria of a genuine redundancy.

MediumBiz paid Chris $50,000 in leave entitlements as a lump sum and $50,000 in salary and wages before his termination. In addition to this income, Chris is also paid $130,000 as an ETP comprising of a $100,000 taxable component and has a tax-free component of $30,000 (relating to service before July 1983).

As the ETP is not a genuine redundancy, MediumBiz classifies the payment as a 'golden handshake'. Using Table A and the following steps, MediumBiz works out which cap to apply and the withholding rate:
Step  MediumBiz action                                                                                                                                                                          Result