An ETP is generally part of a lump sum payment received when a person is:
An ETP includes:
As defined in the Income Tax Assessment Act 1997, the following payments are not considered ETPs:
Example: The tax free amount of a genuine redundancy payment or an approved early retirement scheme payment could be 2 weeks pay or wages for each year of service.
A genuine redundancy payment is so much of a payment that:
Example: A person who resigns after 10 years employment could expect payment of:
A person who is made redundant may receive payments beyond their leave payments, such as 2 weeks pay or wages for each year of service.
Note: More detailed information on ETPs can be found on the ATO website.
Policy Reference: SS Guide 126.96.36.199 Description: Employment Termination Payments & Roll-overs for the IMP
For some income support payments any ETP a person receives may be used in calculating the length of their IMP.
Act reference: SSAct section 14A Social security benefit liquid assets test definitions, section 1064 Module F Ordinary income for the purposes of DSP, section 1066A Module G Payments taken to be ordinary income (DSP), section 1067G Module H Income test (YA), section 1067L Module D Income test (Austudy), section 1068A Module E Ordinary income test (PPS), section 1068-G7 Lump sum payments arising from termination of employment (NSA, WA, PA, SA), section 1068-G7AQ Income test - Definitions (NSA, SA, PA, WA)
Policy Reference: SS Guide 188.8.131.52 Application of the Income Maintenance Period (IMP)
Last reviewed: 11 February 2013