termination payments

Eligible Termination Payments

Undeducted Contributions     Exempt
Pre 1/7/1983 component 5% included in taxpayer’s
assessable income

Post 30/6/1983 taxed component:

Taxpayer retired before 55: tax not generally exceeding 20%
Taxpayer retires after 55:
    First $135,590 generally exempt
    Excess over $135,590 tax generally not exceeding 15%


Post 30/6/1983 untaxed component:

Taxpayer retired before 55: tax not exceeding 30%
Taxpayer retires after 55:
    First $135,590 tax not exceeding 15%
    Excess over $135,590 tax not exceeding 30%

Employment Termination Payments


From 1 July 2012 only that part of an affected ETP that takes a persons annual taxable income (including the ETP) to no more than $180,000 is eligable to receive the ETP offset.

Cap for life benefit ETPs $185,000
Cap for death benefit ETPs $185,000


Maximum Superannuation guarantee contributions base $49,430 per quater (rate increase to 9.5%)

Redundancy and Early Retirement

Category
Amount
Rate of Tax
Tax free amount $9,514 + ($4,758 x yrs of service) Exempt
Excess Ordinary ETP