Termination - Lump Sum Payment (Genuine Redundancy or Early Retirement)
Jan 20, 2025
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🎯 The reporting of payments for Lump Sum Payment (Genuine Redundancy or Early Retirement) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Lump Sum Payment (Genuine Redundancy or Early Retirement) continues to be reported under Lump Sum Type Code = D.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Lump Sum Payment (Genuine Redundancy or Early Retirement) is applicable when the Payee has ceased employment due to Ill Health or Redundancy and requires payment based on their complete years of service up to the age-pension age.
Payments with this Pay Type use the Rate Per Hour set in the Payee Master File, and Leave Entitlements are not applicable. These payments are not considered W1 (Total of Salary, Wages, and other payments), Taxable, or OTE (SGAA).
