Lump Sum and Termination Codes
There are special codes for the lump sums and annual leave paid upon resignation or redundancy. The codes are required for the reporting to the ATO. The codes are: Lump Sum - this type of income is irregular, one-off, non- periodic remuneration for employees.
Lump sum and termination codes
| Codes | Description | JobBag Kind/Item Required |
|---|---|---|
| Lump Sum D |
Redundancy Pay (in connection with genuine redundancy and payment within the tax-free limit) Pay in lieu of notice (in connection with genuine redundancy and payment within the tax-free limit) |
|
| Lump Sum A Type R |
Leave – paid on termination – annual leave or leave loading accrued after 17 August 1993, termination for genuine redundancy, invalidity or early retirement scheme reasons Leave – paid on termination – long service leave accrued after 17 August 1993, termination for genuine redundancy, invalidity or early retirement scheme reasons |
|
| Lump Sum A Type T |
Leave – paid on termination – unused annual leave or leave loading paid on termination that accrued before 17 August 1993 Leave – paid on termination – long service leave that accrued between 16 August 1978 and 17 August 1993. |
|
| Lump Sum B | Leave – paid on termination – long service leave that accrued before 16 August 1978 |
|
ETP Codes
| Code | Description | JobBag Kind/Item Required |
|---|---|---|
| ETP Taxable component | ETP Taxable component – generally includes all amounts paid to an employee on termination |
|
| ETP Tax-free component |
ETP Tax-free component – only applicable to pre-July 1983 service or invalidity/death termination payments. Tax free redundancy payments are never reported as an ETP tax-free component; |
|
Other Lump Sum codes
| Code | Description | JobBag Kind/Item Required |
|---|---|---|
| Lump Sum E | Back pay – accrued more than 12 months before date of payment |
|
| Lump Sum W | Return to work payment |
|
What is a Genuine Redundancy?
A genuine redundancy payment is a payment made to you as an employee if your job is abolished and you no longer have a job. This means your employer has made a decision that your job no longer exists, and your employment is to be terminated.
What is an ETP?
When you leave work or change jobs, you may receive several lump sum payments. The tax you pay on these lump sum amounts is different to the tax you pay on your normal income. One lump sum may be an employment termination payment (ETP).
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