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What is an ETP?

An ETP (employment termination payment) is a payment you receive as a result of ending your employment. These payments should be shown on a PAYG payment summary - employment termination payment (NAT 70868).

You must also report most ETPs on your tax return, including

  • death benefit ETPs - paid to you for someone that died
  • foreign ETPs - received from overseas employment, but reportable only if exempt from that country’s income tax
  • late termination payments - received more than 12 months after ceasing employment
  • transitional termination payments - certain ETPs you were entitled to on 9 May 2006

ETPs you don’t need to report on your tax return include

  • foreign termination payments that were not exempt from that country’s income tax
  • directed termination payments paid by your employer to a complying superannuation fund or to purchase a superannuation annuity.
  • ETPs received as the trustee of a deceased estate - they must be reported on the tax return of that estate.