Termination - Lump Sum Payment (Invalidity, Tax Free Component)
Jan 20, 2025
846
🎯 The reporting of payments for Lump Sum Payment (Invalidity, Tax Free Component) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Lump Sum Payment (Invalidity, Tax Free Component) continues to be reported under ETP Type Code = R, O, S or P.
🎯 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 (Invalidity, Tax Free Component) is applicable when the Payee ceases employment due to Ill Health and receives a payment that relates to Invalidity per Table A: Withholding rates for ETPs.
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).
