Document ID: chunk:federal_register_of_legislation:F2024L00664:clause:11_5:p3
Version: federal_register_of_legislation:F2024L00664
Segment Type: clause
Provision Reference: sch 11 cl 5 (pt 3/4)
Character Range: 226835–229736

dollar once calculated. Results ending in 50 cents are rounded to the next higher dollar.

If your employee has not given you a TFN, you must withhold 47% from the delayed termination payment you make to a resident employee and 45% from a foreign resident employee. Ignore any cents in the result.

Preservation age

The withholding amount varies depending on whether the employee has reached their preservation age by the end of the income year in which the payment is made.

Preservation age is determined using your employee's date of birth. For example, if your employee was born on 1 October 1964, they reach their preservation age of 60 on 1 October 2024.

The table below outlines the transitional period where the preservation age increased progressively from 55 to 60. As the transitional period has been completed, for the 2024-25 and future income years the preservation age is 60 for all employees born after 30 June 1964. For those employees born before that date, they have already reached their preservation age.

Preservation age
Date of birth       Preservation age
Before 1/7/1960     55
1/7/1960–30/6/1961  56
1/7/1961–30/6/1962  57
1/7/1962–30/6/1963  58
1/7/1963–30/6/1964  59
After 30/6/1964     60

ETP reporting

You must provide your employee with one or more PAYG payment summary – employment termination payment forms within 14 days of making an ETP, or report the ETP in the pay event if using Single Touch Payroll (STP).

An ETP code is used to describe the type of payment, and determines which cap, ETP cap or whole-of-income cap is applied. The tables below shows the type of ETPs and which code applies:

Life benefit ETP
Code  Description
      ETP because of:

          * early retirement scheme
          * genuine redundancy
          * invalidity
R         * compensation for:
      -          personal injury
      -          unfair dismissal
      -          harassment
      -          discrimination.

O     Other ETP not described by R, for example, golden handshake, gratuity, payment in lieu of notice, payment for unused sick leave, payment for unused rostered days off.

Multiple payments for same termination
Code  Description
      This is a code R payment. You made one of the following payments to your employee in a previous income year for the same termination:

          * a code R payment
S         * a code O payment
          * a transitional termination payment.

      This is a code O payment and you made one of the following payments to your employee in a previous income year for the same termination:

          * a code R payment
P         * a code O payment
          * a transitional termination payment.

Death benefit ETP
Code  Description
D     Death benefit ETP paid to a dependant of the deceased.
B     Death benefit ETP paid to a non-dependant of the deceased. You made a termination payment to the non-dependant